What does a Junior Underwriter do?
Published 3 min read
A Junior Underwriter is responsible for the initial review and analysis of loan applications. They make sure that the loan meets the guidelines set by the company and make recommendations to the senior underwriter.
Junior Underwriter job duties include:
- Review loan files for accuracy and completeness
- Verify employment, income, assets, and liabilities
- Analyze credit reports
- Determine if the borrower meets the company’s guidelines for approval
- Order appraisals and title reports
- Review property insurance
- Examine the loan’s structure to ensure it is sound
- Calculate the risk of default and determine the interest rate
- Prepare loan documents for closing
Junior Underwriter Job Requirements
A Junior Underwriter typically needs a bachelor's degree in business, finance, economics, or a related field. Certification as a Chartered Financial Analyst (CFA) or Certified Public Accountant (CPA) is preferred. Prior experience in underwriting, credit analysis, or loan servicing is also helpful.
Junior Underwriter Skills
- Analytical skills
- Probability and statistical analysis
- Financial analysis
- Finance
- Asset management
- Real estate
- Business administration
- Marketing
- Financial modeling
- Business strategy
- Business development
Related: Top Junior Underwriter Skills: Definition and Examples
How to become a Junior Underwriter
There are many steps that one must take in order to become a Junior Underwriter. The first step is to have a bachelor's degree in business administration, finance, or a related field. Next, it is recommended that you complete an internship with an insurance company. This will give you the opportunity to learn about the underwriting process and gain experience in the industry. After completing your internship, you should then apply for a Junior Underwriter position at an insurance company. Once you have been hired, you will be responsible for reviewing insurance applications and determining whether or not to approve them. To be successful in this role, it is important that you have strong analytical and decision-making skills.
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