Underwriting Analyst Interview Questions and Answers

Verified income is a better underwriting approach than stated income.

• Verified income provides more accurate information about the borrower's financial situation.

• Stated income can be easily manipulated or exaggerated by the borrower.

• Verified income reduces the risk of default and improves the lender's profitability.

• However, verifying income can be time-consuming and costly for the lender.

• The underwriting approach should also consider other factors such as credit history and de...read more

The 4 Cs of mortgage are character, capacity, capital, and collateral.

• Character refers to the borrower's credit history and reliability.

• Capacity refers to the borrower's ability to repay the loan based on income and debt.

• Capital refers to the borrower's financial reserves and assets.

• Collateral refers to the property or assets that can be used as security for the loan.