The Value of Mortgage Education

Written By: Frankie Lacy

Mortgage education has become a vital tool for residential and commercial lending professionals in the current environment. Right now, there is a heightened emphasis on compliance with lending regulations and underwriting guidelines. Automated Underwriting Systems are becoming more sophisticated and their recommendations require a higher knowledge level than ever before.

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The current lending environment requires a mix of manual and automated underwriting. This means we are required to be familiar with mortgage terminology, formulas, and guidelines. We have to understand how to read loan documentation to ensure its accuracy and to identify discrepancies. We must be able to identify red flags and know what steps to take to clear those issues. We are required to be familiar with disclosures and be able to spot compliance errors along the way.

Underwriters are obligated to answer audit and post-closing inquiries from third party underwriters. We work in concert with mortgage insurance companies, appraisal management companies, and government agencies to get loans approved and sold. Underwriters document income, debt ratio, and LTV calculations. We document the rationalization for our decisions and we’re often required to notate compensating factors.

As a result, every underwriter and processor should be excited about mortgage education. Getting instruction on mortgage calculations, guideline review, documentation analysis, and lending requirements will give you the edge you need to get ahead in your career. Taking classes independently from your company’s offerings will allow you access to materials that you can use for reference throughout your entire career. Ownership of these materials and the ability to take them wherever you go will prove invaluable. You will soon stand out as an expert within your field and become the “go-to” person when your peers and managers have questions.

As lending organizations continue to watch their bottom line in the face of a fluctuating and still somewhat uncertain economy, your willingness to invest in your education will pay dividends as you seek employment opportunities. Certificates of completion or becoming a certified underwriter/processor are credentials you can attach to your resume, LinkedIn profile, or Facebook profile. You can also include these in your profiles.

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Mortgage specific educational credentials are the future of this industry. They are a way for prospective employers to quickly determine that you have working knowledge of compliance, lending guidelines, mortgage terminology, and mortgage documentation. They build confidence in our industry as potential clients can see the trade standard is moving toward certification and licensing. Join the ranks of the top mortgage professionals of today by investing in your mortgage education.

About The Author

Frankie Lacy - As an active NAMP® member and a NAMU®-CMMU designee, Ms. Frankie Lacy is a 13-year mortgage industry veteran with extensive conventional mortgage underwriting experience. Frankie is also a mortgage instructor for Mortgage Underwriter University ( Topics of Frankie's expertise include: Fannie Mae, Freddie Mac, USDA Rural Housing, underwriting to investor overlays, self-employed borrowers, personal and business tax return analysis, rental income, condos/co-ops/PUDs, and more. Frankie is a Davenport University graduate with a degree in Business Administration. If you're interested in becoming a writer for NAMP®, please email us at:

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