Principles of Conventional Underwriting

During this course students will learn the methods and expertise needed to successfully underwrite conventional loan files. Industry experts will guide you through the underwriting process, including loan categories, supporting documentation, appraisal review, credit, income and asset analyses, fraud detection, and risk management, and teach you how to apply this information to the everyday task of reviewing loans.

What will I learn?

Upon completion of the course, students will be able to:

  • Define the role of the underwriter
  • Describe elements that impact credit
  • Analyze income and determine income stability
  • Evaluate assets and determine eligibility
  • Explain the appraisal review process
  • Identify inconsistencies in a mortgage loan file that may indicate potential fraud and related processes for quality control
  • List best practices to mitigate underwriting risk within a business environment


By the end of the course participants will have a fundamental understanding of how to read and interpret a credit report and analyze the liabilities found within it; analyze income, assets and collateral. Recognize red flags, potential fraud and overall loan file inconsistencies that impact the underwriting decision.

Classes consist of four 90-minute live sessions with instructors delivered through the Zoom conferencing platform.


During the course the following topics will be covered:

Session One

  • Research Credit and Liability requirements of Fannie Mae and Freddie Mae
  • Analyze multiple credit report samples and determine eligibility and identify red flags

Session Two

  • Research Income/Employment and Asset requirements set by Fannie Mae and Freddie Mac
  • Review and analyze various income and employment documentation and determine eligibility
  • Calculate income from various types of income documentation
  • Calculate ratios
  • Test your understanding of asset requirements
  • Analyze asset documentation and determine if it meets eligibility requirements

Session Three

  • Research Fannie Mae and Freddie Mac appraisal requirements
  • Analyze appraisal samples and determine if they meet investor guidelines

Session Four

  • Review the course case study in its entirety.
  • Complete the 1008 Underwriting Transmittal Form
  • Provide your underwriting decision with explanation
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