Top 10 Loan Underwriter Certifications

Certifications are important for a loan underwriter in the job market because they demonstrate expertise and knowledge of the industry. They also provide evidence that an individual has been trained to assess credit risk, analyze financial documents, and understand federal regulations governing lending activities. A certification can be a valuable asset to employers when making hiring decisions, as it shows that an underwriter is capable of performing their duties with competence and accuracy. Additionally, certifications provide recognition from professional organizations, which can help build trust in the eyes of potential clients.

This article reviews some of the top certifications for Loan Underwriters and explains how they can enhance a loan underwriter's career.

What are Loan Underwriter Certifications?

Loan underwriter certification is a designation for individuals who have successfully completed training and passed an examination demonstrating their knowledge of loan underwriting principles and practices. Loan underwriters are responsible for reviewing loan applications and determining whether or not to approve them based on their creditworthiness. They must be knowledgeable in all aspects of loan underwriting, including assessing credit risk, verifying income and employment information, analyzing financial statements, and evaluating collateral value.

Having a loan underwriter certification can help individuals demonstrate to employers that they possess the necessary skills and qualifications to perform the job effectively. It also provides employers with assurance that the individual has met certain standards of competency. Furthermore, having a certification may give applicants an edge over other candidates when applying for positions within the financial industry. Finally, having a certification can provide opportunities for career advancement by allowing individuals to take on more responsibility or even specialize in certain areas of loan underwriting.

Pro Tip: When considering a loan underwriter certification, be sure to research the certifying body and ensure that it is recognized by the industry. Additionally, make sure to look into their continuing education requirements and any additional certifications or qualifications they may require for advancement.

Related: What does a Loan Underwriter do?

Top 10 Loan Underwriter Certifications

Here’s our list of the best certifications available to Loan Underwriters today.

1. Certified Mortgage Underwriter (CMU)

Certified Mortgage Underwriter (CMU) is a professional designation that recognizes an individual's expertise in the field of mortgage underwriting. This certification is awarded by the Mortgage Bankers Association (MBA).

The CMU certification requires individuals to demonstrate their knowledge and skills in areas such as loan origination, loan processing, credit analysis, risk assessment, and portfolio management. To obtain the CMU certification, candidates must complete a comprehensive exam that covers all aspects of mortgage underwriting. The exam consists of multiple-choice questions and is administered online or at approved testing centers.

It typically takes about three months for an individual to prepare for the CMU exam. During this time, it is important to study the materials provided by the MBA and practice with sample test questions. Additionally, there are several online resources available to help individuals prepare for the exam.

The cost of obtaining the CMU certification varies depending on where you take the exam and any additional materials you may need to purchase. Generally speaking, it costs around $500-$600 to register for the exam and purchase any necessary study materials.

2. Certified Residential Mortgage Underwriter (CRMU)

Certified Residential Mortgage Underwriter (CRMU) is a professional designation offered by the Mortgage Bankers Association (MBA). The CRMU designation is designed to recognize individuals who have demonstrated expertise in the residential mortgage industry.

To become a CRMU, individuals must pass an exam that covers topics such as mortgage origination, underwriting, and loan servicing. The exam consists of 100 multiple-choice questions and takes approximately three hours to complete.

The cost of the exam varies depending on whether or not you are an MBA member. For non-members, the cost is $350; for members, the cost is $250.

In order to prepare for the exam, individuals can take advantage of online study materials and practice exams provided by MBA or purchase self-study materials from third-party vendors. Additionally, there are several courses available through MBA that provide comprehensive training in preparation for the CRMU exam.

Once you have passed the exam and become certified, you will be required to maintain your certification by completing continuing education credits every two years in order to stay current with changes in the industry.

3. Certified Consumer Loan Underwriter (CCLU)

Certified Consumer Loan Underwriter (CCLU) is a professional certification program designed to provide loan officers, underwriters, and other financial professionals with the knowledge and skills needed to effectively evaluate consumer loan applications. The program focuses on the fundamentals of consumer lending, including credit analysis, risk assessment, and loan documentation.

The CCLU certification requires successful completion of a two-day course and passing of an exam. The course covers topics such as understanding credit reports and scores, analyzing consumer debt levels, assessing repayment capacity, evaluating collateral value, understanding legal issues related to consumer lending, and more.

The cost for the CCLU certification program varies depending on the provider. Generally speaking, it costs anywhere from $500 - $1,000 USD for the two-day course and exam fees.

In order to become certified as a CCLU, individuals must complete the required training course and pass the exam with a score of at least 80%. Upon successful completion of the exam, individuals will receive their official CCLU certificate from the certifying body.

4. Certified Commercial Loan Underwriter (CCLU)

A Certified Commercial Loan Underwriter (CCLU) is a professional designation awarded by the National Association of Credit Management (NACM). The CCLU is designed to provide recognition and credibility to those who specialize in commercial loan underwriting.

The CCLU program requires applicants to complete an online course, pass a written exam, and submit a portfolio of loan underwriting experience. The online course covers topics such as credit analysis, financial statement analysis, risk assessment, and loan structuring.

It typically takes about six months to complete the program requirements for the CCLU designation. Applicants must have at least two years of commercial loan underwriting experience in order to qualify for the program.

The cost of the CCLU program varies depending on whether you are a member or non-member of NACM. For members, the cost is $495; for non-members, it is $695. Additionally, there is an annual fee of $50 for recertification every three years.

5. American Bankers Association Certified Lender Professional (CLP)

The American Bankers Association Certified Lender Professional (CLP) is a professional designation for individuals who work in the banking and lending industry. This certification is designed to recognize those individuals who have demonstrated a high level of knowledge and skill in the areas of consumer, commercial, and mortgage lending.

To get the CLP certification, you must first meet the experience requirements. You must have at least two years of full-time experience as a lender or credit analyst within the last five years. Once you meet this requirement, you can then take an exam to earn your CLP designation. The exam consists of 150 multiple choice questions that cover topics such as loan origination, loan servicing, compliance, risk management, and other related topics.

It usually takes about six weeks to complete the certification process from start to finish. The cost for the exam is $450 for ABA members and $550 for non-members.

6. National Association of Mortgage Underwriters Certified Mortgage Underwriter (NAMU-CMU)

The National Association of Mortgage Underwriters Certified Mortgage Underwriter (NAMU-CMU) is a professional certification that demonstrates a mortgage underwriter’s expertise and knowledge in the field. It is an advanced designation that shows employers and clients that the individual has the necessary skills to accurately assess and approve mortgage loans.

To obtain the NAMU-CMU designation, applicants must pass an exam administered by NAMU. The exam covers topics such as loan processing, underwriting, credit analysis, legal compliance, fraud prevention, and more. The exam consists of 100 multiple choice questions and takes approximately three hours to complete.

In order to be eligible to take the NAMU-CMU exam, applicants must have at least two years of experience in mortgage underwriting or related fields. They must also provide proof of their work experience with a letter from their employer or supervisor.

The cost for taking the NAMU-CMU exam is $295 for members of NAMU and $395 for non-members. The fee includes access to study materials and practice exams to help prepare for the test. Once an applicant passes the exam, they will receive a certificate from NAMU confirming their status as a Certified Mortgage Underwriter (NAMU-CMU).

7. American Institute of Financial Services Professionals Certified Loan Originator (AIFS-CLO)

The American Institute of Financial Services Professionals Certified Loan Originator (AIFS-CLO) is a professional certification that demonstrates knowledge and expertise in the loan origination process. It is designed for individuals who work in the mortgage industry, including loan originators, processors, underwriters, closers, and other related professionals.

To obtain the AIFS-CLO designation, applicants must pass an online exam that covers topics such as loan origination processes and procedures, federal regulations governing loans and lending practices, consumer protection laws, credit reporting requirements, fair lending practices, and more. The exam consists of 100 multiple choice questions and takes approximately two hours to complete.

In order to be eligible to take the AIFS-CLO exam, applicants must have at least three years of verifiable experience in the loan origination process. Applicants must also submit a completed application form with their current resume or CV. The cost of the AIFS-CLO exam is $295 USD.

Once applicants have successfully passed the AIFS-CLO exam they will receive a certificate of completion from the American Institute of Financial Services Professionals (AIFSP). This certificate can be used as proof of proficiency in loan origination processes when applying for jobs or promotions within the mortgage industry.

8. National Association of Credit Management Credit and Collection Professional (NACM-CCP)

The National Association of Credit Management Credit and Collection Professional (NACM-CCP) is a certification program offered by the National Association of Credit Management (NACM). The NACM-CCP is designed to recognize credit and collection professionals who have demonstrated knowledge and proficiency in their field.

The NACM-CCP requires applicants to pass an exam that covers topics such as credit management, collections, legal issues, customer service, and financial analysis. The exam can be taken online or in person at a testing center. It typically takes three to four hours to complete the exam.

To become certified, applicants must meet certain eligibility requirements including having two years of experience in credit management or collections and completing an approved course of study. Applicants must also submit a completed application form along with the required fee.

The cost for the NACM-CCP certification program varies depending on whether you take the exam online or at a testing center. Online exams typically cost $295 while exams taken at a testing center cost $395.

9. American Institute of Financial Services Professionals Certified Mortgage Analyst (AIFS-CMA)

The American Institute of Financial Services Professionals Certified Mortgage Analyst (AIFS-CMA) designation is a professional certification program that provides mortgage professionals with the knowledge and skills necessary to understand and analyze residential mortgage transactions. The AIFS-CMA program is designed to help mortgage professionals gain an understanding of the complexities of the mortgage industry and provide them with the ability to make sound decisions when analyzing loan applications.

The AIFS-CMA program consists of three courses: Mortgage Analysis, Loan Documentation, and Risk Management. Each course must be completed in order to receive the AIFS-CMA designation. The program takes approximately two months to complete, depending on how quickly you can finish each course.

In order to become certified as an AIFS-CMA, you must first complete all three courses and pass a comprehensive exam at the end of each course. You must also have at least two years of experience in the mortgage industry or have completed an accredited degree in a related field.

The cost for the AIFS-CMA program varies depending on which institution you choose to take it from. Generally speaking, it will cost anywhere from $1,500-$2,500 for all three courses combined.

10. National Association of Professional Mortgage Brokers Professional Mortgage Broker Certification Program (NAPMB-PMBCP)

The National Association of Professional Mortgage Brokers Professional Mortgage Broker Certification Program (NAPMB-PMBCP) is a program designed to provide mortgage brokers with the knowledge and skills necessary to become successful in the industry. The program consists of two components: an online course and an in-person certification exam.

The online course covers topics such as loan origination, mortgage underwriting, loan servicing, compliance regulations, and other related topics. The course is self-paced and can be completed at your own convenience. It typically takes around 30 hours to complete the entire course.

In order to take the certification exam, you must first pass the online course with a grade of 70% or higher. After passing the online course, you will be eligible to take the certification exam which is administered by NAPMB at various locations throughout the country. The exam consists of multiple-choice questions and lasts for 2 hours.

The cost of taking the certification program varies depending on whether you are a member of NAPMB or not. For members, it costs $299 for both the online course and exam; for non-members, it costs $399 for both components.

Overall, this certification program is a great way for mortgage brokers to gain additional knowledge and skills that will help them succeed in their profession.

Do You Really Need a Loan Underwriter Certificate?

The answer to this question depends on your individual circumstances. If you are looking to secure a loan from a lender, having an underwriter certificate may be beneficial. Underwriters are responsible for evaluating the risk associated with lending money and determining whether or not a loan should be approved. Having a certificate in this field can help demonstrate to potential lenders that you know how to properly assess the risk associated with lending and that you can effectively manage those risks.

However, if you are already working in the financial industry and have experience in evaluating loan applications, then having an underwriter certificate may not be necessary. The most important thing is that you have the knowledge and experience necessary to make sound decisions when it comes to assessing creditworthiness and other factors related to granting loans.

In conclusion, whether or not you need an underwriter certificate really depends on your individual circumstances. If you feel like having a certificate would give you an advantage when applying for loans, then it may be worth considering obtaining one. On the other hand, if you feel like your existing skill set is sufficient for evaluating loan applications, then there may be no need for an additional certification.

Related: Loan Underwriter Resume Examples

FAQs About Loan Underwriter Certifications

1. What is a Loan Underwriter Certification?

Answer: A Loan Underwriter Certification is a professional certification that demonstrates knowledge and expertise in the loan underwriting process. It can be obtained through an accredited institution or organization, such as the Mortgage Bankers Association (MBA) or National Association of Mortgage Underwriters (NAMU).

2. What are the requirements to become certified?

Answer: Requirements vary depending on which institution or organization you are obtaining your certification from, but they generally include passing an exam, having at least 2 years of experience in loan underwriting, and completing any additional coursework or training that may be required.

3. What type of jobs require a Loan Underwriter Certification?

Answer: Many loan-related jobs require a Loan Underwriter Certification, including positions in banks, mortgage companies, financial institutions, credit unions, and other lending organizations.

4. How long does it take to obtain a Loan Underwriter Certification?

Answer: The amount of time it takes to obtain a Loan Underwriter Certification depends on the institution or organization you are obtaining your certification from and how quickly you complete any required coursework or exams. Generally speaking, it can take anywhere from several weeks to several months to complete the necessary steps for certification.

5. How much does it cost to become certified?

Answer: Costs vary depending on which institution or organization you are obtaining your certification from; however, some may charge fees for exams or course materials that need to be purchased in order to obtain your certification.