Example SOPs: Underwriter

We’ve made it easy for you to build your Underwriter SOPs. Add the example SOPs to our SOPs template and then customise them to suit your specific systems & processes.

Need help setting up your Underwriter SOPs library? Speak to our team about our SOP starter templates that are tailored to your specific industry.

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Underwriter SOPs

Creating Standard Operating Procedures for your Underwriter work can be difficult and take time. That’s why we’ve created these example Underwriter SOPs so you can jumpstart your SOP creation process. We want to help you set up your Finance systems and processes by taking these sample SOPs and building out your own SOPs template library. By having all your Finance procedures in one place, your team will have the information they need at all times. Let’s look at some Underwriter SOP examples.

Underwriter SOP Examples

1. Loan Application Review SOP: The purpose of this SOP is to outline the process for reviewing loan applications submitted by borrowers. It includes verifying the accuracy and completeness of the application, assessing the borrower’s creditworthiness, analyzing financial statements, and determining the loan amount and terms. The scope of this SOP covers all loan applications received by the underwriter. The underwriter is responsible for conducting the review and making a recommendation for approval or denial. This SOP references the Credit Analysis SOP for detailed guidelines on assessing creditworthiness.

2. Risk Assessment SOP: The purpose of this SOP is to assess the risk associated with each loan application. It involves evaluating factors such as the borrower’s credit history, income stability, collateral, and industry trends. The scope of this SOP covers all loan applications received by the underwriter. The underwriter is responsible for conducting the risk assessment and assigning an appropriate risk rating. This SOP references the Loan Application Review SOP for information on the borrower’s financial information.

3. Policy Compliance SOP: The purpose of this SOP is to ensure that all loan applications comply with the company’s policies and regulatory requirements. It includes verifying that the loan terms, interest rates, fees, and documentation meet the established guidelines. The scope of this SOP covers all loan applications received by the underwriter. The underwriter is responsible for reviewing and confirming policy compliance. This SOP references the Loan Application Review SOP for information on the loan terms and documentation.

4. Underwriting Decision SOP: The purpose of this SOP is to outline the process for making underwriting decisions on loan applications. It includes considering the borrower’s creditworthiness, risk assessment, policy compliance, and any additional factors deemed relevant. The scope of this SOP covers all loan applications received by the underwriter. The underwriter is responsible for making the underwriting decision and documenting the rationale behind it. This SOP references the Loan Application Review SOP, Risk Assessment SOP, and Policy Compliance SOP for information required to make the decision.

5. Documentation and Reporting SOP: The purpose of this SOP is to establish guidelines for documenting underwriting decisions and generating reports. It includes recording the details of each loan application, the underwriting decision, and any conditions or exceptions. The scope of this SOP covers all loan applications reviewed by the underwriter. The underwriter is responsible for documenting and reporting the underwriting decisions. This SOP references the Underwriting Decision SOP for information on the decision made.

6. Quality Control SOP: The purpose of this SOP is to ensure the accuracy and consistency of underwriting decisions. It involves conducting periodic reviews of a sample of underwritten loans to assess adherence to policies, accuracy of documentation, and consistency in decision-making. The scope of this SOP covers a sample of loan applications reviewed by the underwriter. The quality control team is responsible for conducting the reviews and providing feedback to the underwriter. This SOP references the Underwriting Decision SOP and Documentation and Reporting SOP for information on underwriting decisions and documentation.

7. Communication and Collaboration SOP: The purpose of this SOP is to establish guidelines for effective communication and collaboration between the underwriter and other stakeholders, such as loan officers, appraisers, and legal counsel. It includes defining communication channels, response times, and protocols for sharing information. The scope of this SOP covers all interactions related to loan underwriting. The underwriter is responsible for following the communication and collaboration guidelines. This SOP references the Loan Application Review SOP for information on loan applications.

8. Continuous Education and Training SOP: The purpose of this SOP is to ensure that underwriters stay updated with industry trends, regulatory changes, and best practices. It includes identifying training needs, organizing relevant training sessions, and encouraging continuous learning. The scope of this SOP covers all underwriters in the organization. The human resources department is responsible for implementing the continuous education and training program. This SOP references industry publications, regulatory updates, and internal training materials.

9. Exception Handling SOP: The purpose of this SOP is to outline the process for handling exceptions to the underwriting guidelines. It includes defining the criteria for granting exceptions, documenting the rationale, and obtaining appropriate approvals. The scope of this SOP covers all loan applications that require exceptions. The underwriter is responsible for identifying and documenting exceptions, while the management team is responsible for approving them. This SOP references the Loan Application Review SOP and Policy Compliance SOP for information on loan applications and guidelines.

10. Audit and Compliance SOP: The purpose of this SOP is to ensure compliance with internal policies, industry regulations, and audit requirements. It includes conducting periodic audits of underwriting processes, documentation, and adherence to policies. The scope of this SOP covers all underwriting activities. The internal audit team is responsible for conducting audits, while the underwriter is responsible for providing necessary documentation and cooperating during the audit process. This SOP references all relevant underwriting SOPs for information on processes and documentation

 

Underwriter SOP Templates

Looking for SOP templates for your Underwriter work? We’ve got you covered. You can build out your company SOPs using the sample SOP information above (added to our template) or our team can put together a starter SOPs template based on your Underwriter work. Get in touch if you’ve got questions about the quickest way to build out your Finance SOPs library.

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