Non QM Underwriter

Non-QM Mortgage Underwriter Position Summary

The Non-QM Mortgage Underwriter is responsible for the comprehensive credit, income, asset, collateral, and compliance review of residential mortgage loans that fall outside traditional Agency and Qualified Mortgage (QM) guidelines.

The Underwriter evaluates each loan based on applicable investor guidelines, Bank credit policy, regulatory requirements, and sound underwriting principles to determine the borrower’s ability to repay and the overall acceptability of the credit risk.

This position requires significant experience with Non-QM products, including bank statement, asset utilization/depletion, debt service coverage ratio (DSCR), investor cash-flow, alternative documentation, jumbo, and other non-Agency residential mortgage programs.

• Perform complete underwriting analysis of Non-QM residential mortgage loan applications.
• Evaluate borrower credit history, liabilities, liquidity, reserves, assets, income, employment, occupancy, and overall credit profile.
• Determine whether loans meet applicable Bank and investor credit and eligibility requirements.
• Analyze compensating factors and layered risk when evaluating loans with multiple risk characteristics.
• Review credit reports, fraud reports, verification documentation, title information, and other supporting documentation.
• Identify inconsistencies, red flags, potential fraud, and documentation deficiencies.
• Apply prudent underwriting judgment when guidelines require interpretation or escalation.

Perform detailed analysis of traditional and alternative income documentation, including:

• Personal and business tax returns.
• W-2 and salaried income.
• Self-employed borrower income.
• Bank statement programs, including personal and business bank statements.
• Profit-and-loss statement programs.
• 1099 income programs.
• Asset utilization and asset depletion programs.
• Rental and investment-property income.
• DSCR and property cash-flow programs.
• Other alternative documentation programs permitted by approved investor guidelines.

The Underwriter must understand the differences among investor methodologies and correctly apply the applicable calculation methodology to each loan.

• Calculate and validate DSCR in accordance with applicable program and investor requirements.
• Review lease agreements, market rents, appraisal rental schedules, taxes, insurance, HOA expenses, and other required property information.
• Determine property and borrower eligibility for business-purpose and investor-property loan programs.
• Identify circumstances requiring additional documentation or escalation.

• Review residential appraisals for completeness, consistency, marketability, and compliance with applicable program requirements.
• Evaluate comparable sales, adjustments, property condition, market trends, and unusual property characteristics.
• Review automated valuation models, appraisal review products, desk reviews, field reviews, and other collateral documentation when required.
• Identify appraisal or property issues requiring escalation to management, appraisal review, or the investor.

• Underwrite loans to approved Non-QM investor guidelines and Bank credit policy.
• Maintain working knowledge of multiple investor matrices, overlays, exceptions, and documentation requirements.
• Ensure loans are structured to meet the requirements of the anticipated secondary-market execution.
• Identify potential investor eligibility or salability issues before final loan approval.
• Work with Secondary Marketing and Capital Markets personnel to resolve investor eligibility questions and determine appropriate loan execution.
• Assist in addressing investor suspense conditions, post-purchase inquiries, and underwriting-related conditions when necessary.

• Evaluate loans for compliance with applicable federal and state mortgage lending requirements.
• Apply applicable Ability-to-Repay requirements to consumer-purpose Non-QM transactions.
• Understand the distinction between consumer-purpose Non-QM lending and applicable business-purpose/investor-property transactions.
• Review documentation for consistency with loan purpose, occupancy, product eligibility, and applicable regulatory requirements.
• Escalate potential compliance concerns before final approval.

• Issue clear underwriting decisions, including approval, conditional approval, suspension, counteroffer/restructure recommendation, or denial within delegated authority.
• Establish appropriate underwriting conditions necessary to support the credit decision.
• Review submitted conditions and determine whether underwriting requirements have been satisfactorily addressed.
• Document underwriting rationale clearly enough to support internal review, quality control, investor review, regulatory examination, and audit.
• Escalate policy exceptions and loans outside…