What a mortgage underwriter does
A mortgage underwriter decides whether an application meets the lender's policy. That means reviewing income and employment documents, credit reports, down payment sources, property appraisals and the borrower's overall debt service, then approving, declining or approving with conditions. For insured mortgages, the underwriter also works within the mortgage default insurer's rules. Good underwriters are thorough without being slow, and they explain decisions clearly to the brokers and specialists who submitted the deal.
Federally regulated lenders follow OSFI's Guideline B-20 for residential mortgage underwriting, and every lender adds its own policy. Experience at a bank does not always prepare someone for alternative or private lending, where files depend more on equity and judgement. Whether the role needs an FSRA licence depends on the employer, because assessing a borrower for a lender can count as dealing in mortgages outside financial institutions. Finch confirms your requirements and screens to match.
Typical responsibilities
- Review applications, credit bureaus and supporting documents against lending policy
- Calculate debt service ratios and confirm the borrower qualifies at the required rate
- Assess property value and marketability using appraisals and valuation tools
- Issue approvals, conditions or declines with clear written reasons
- Spot signs of misrepresentation or fraud and escalate them
- Work with mortgage default insurers on insured applications
Qualifications and credentials
- Underwriting or credit adjudication experience with a bank, credit union, monoline or private lender
- Strong knowledge of income verification for salaried, self-employed and commission earners
- Familiarity with OSFI Guideline B-20 and with insurer guidelines from CMHC, Sagen or Canada Guaranty
- A post-secondary credential in business, finance or a related field is common
- An FSRA licence where the employer's structure requires one
Who hires a mortgage underwriter
- Banks and their mortgage operations centres
- Credit unions
- Monoline lenders that fund through mortgage brokers
- Trust companies and alternative lenders
- Private lenders and mortgage investment corporations
Where we recruit mortgage underwriter candidates
We fill mortgage underwriter roles for employers across Toronto and the GTA, including North York, Scarborough, Etobicoke, Vaughan, Markham, Richmond Hill, Mississauga, Brampton, Oakville, Burlington, Oshawa and Pickering, and for employers across Canada. GTA employers can meet us at our North York office by appointment.
What Finch checks before you meet a candidate
- Lender types and products they have underwritten: prime, insured, alternative or private
- Accuracy and judgement, tested through a short case discussion
- How they handle self-employed and complex income files
- Communication with brokers when declining or conditioning a deal
- Comfort with your file volume and turnaround targets
Interview questions to ask
- A self-employed borrower's declared income has dropped, but the business looks healthy. How do you assess the file?
- Tell us about a time you found something wrong in an application. How did you handle it?
- How do you explain a decline to a broker who disagrees with you?