Question: I cannot even begin to explain my frustration while going through the loan modification process. My husband and I have been going at it for a year and a half with no end in sight. For the past six months are negotiator has told us we have been under review and we will be getting a decision shortly. However, today we got a call from our negotiator telling us that our file has now been passed on to underwriting. What the heck, why would our case just now go to a negotiator after six months of review?
During a loan modification, what does a mortgage underwriter do?
Answer: The mortgage underwriter is the person performs a lot of duties when it comes down to processing a loan application (or modification application). Their main duty is to verify all of your financial information is correct, and will further approve the modification for the bank. This is to ensure all of your information and the first negotiators information is accurate before the file can be approved.
Since most lenders are so overwhelmed with modification requests the review time for a modification is taking much longer than it should. A loan modification should take only about 60-120 days to complete, but since they have so many mods in review it can easily take up to a year to fully
complete the process.
The position this person holds is the last stage of quality control so these people must be very experienced in the mortgage industry and fully understand the home loan process. To get to this level it can take a person years and they must first start out as an assistant to loan officers or a junior processor before they can eventually make it to an underwriting position.
This job requires a list of duties to be completed to ensure that the individual pursuing a loan modification, and all of their documentation comply with the lenders guidelines. They will handle all paperwork and information needed for a pending home loan, or in this case a loan modification. Below are just some of the duties a mortgage underwriter must complete while originating a loan or trying to modify an existing mortgage:
-They must make sure they have all of the needed information from the loan applicants including their income verification, tax returns, W-2 forms, bank statements, etc.
-They will do a complete review of your previous credit ratings, current credit score, all household income, expenses, and they will need to calculate your debt to income ratio (DTI).
Underwriters will have the power and authority to make the decision as to whether or not your mortgage will be approved for a modification.
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