How Do I Become a Certified Underwriter?

Certified underwriters assess the risk of providing loans and insurance to clients.

Underwriters work in a variety of situations dealing with home and business loans and medical, auto, life and other types of insurance. They commonly collect data about a person's or family's financial conditions, credit, health and lifestyle, and other factors to determine the risk or potential of providing insurance or a line of credit. Although some employers and industries do not require their underwriters to be certified, the government requires certification for positions dealing with home mortgages, and certification in general can lead to better jobs and higher wages.

Instructions

1. Decide what type of underwriting you wish to perform for your career. Common types include medical underwriting, mortgage underwriting and working as a loan officer at a bank. The path you choose will determine the educational requirements necessary.

2. Enter into formal training appropriate for your chosen field of underwriting. For medical insurance and mortgage underwriting, a bachelor's degree in business administration or finance is a common requirement. Some loan officer careers are started with only a high school diploma, but commercial loan officers typically need to obtain a bachelor's degree as well. In some cases, legitimate experience in the underwriting profession can serve as a substitute for formal training.

3. Seek out and fulfill the requirements necessary to qualify for the appropriate certification exam. For example, the Certified Mortgage Underwriter exam (CMU), administered by the National Association of Mortgage Underwriters, no underwriting experience is necessary but you must pass a background check and become an active NAMU member. The Chartered Property and Casualty Underwriter (CPCU) exam requires at least three years of underwriting experience.

4. Take and pass the exam or exams. The time allotted and percentage of questions that you must correctly answer varies based on the administering organization. For the CMB exam, test takers have up to six hours to finish and must have at least a 70 percent accuracy to pass. Some exams also include an oral presentation section.

5. Maintain your certification by fulfilling continuing education requirements established by the overseeing organization. As laws regarding mortgages, loans and insurance change, certified underwriters must demonstrate current knowledge of how these changes affect their work.

References

• National Association of Mortgage Underwriters: Certified Mortgage Underwriter (CMU)
• Mortgage Leads Guide: Mortgage Underwriters
• StateUniversity.com: Insurance Underwriter Job Description
• Campus MBA: CMB Exams
• Bureau of Labor Statistics: Occupational Outlook Handbook, 2010-11 Edition, Insurance Underwriters
• Bureau of Labor Statistics: Occupational Outlook Handbook, 2010-11 Edition, Loan Officers