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How to Become an FHA DE Underwriter

As a Direct Endorsement underwriter and FHA trainer, we often get the question, “How Do I Become a DE Underwriter?” Generically, the profession is part skill, part ability, part glutton for punishment and, most importantly, a recipient of excellent upfront and ongoing training.

underwriter people

Professional Underwriters

We all know homeownership is a large part of the economy and a DE Underwriter plays a key role in that economic sector.

The key to it is proper product training, proper on the job training while working under the tutelage of a seasoned DE that allows the underwriter to effectively utilize the acquired skills and training in conjunction with critical decision making in order to make an informed underwriting decision.

Therein lies the professionalism: Utilizing the acquired skills and product knowledge to make a lending decision based on sound judgment.
A Direct Endorsement Underwriter (DE) underwrites FHA loans and has the authority to bind FHA to the loan approval process. DE’s work for the lender and as such, the DE will validate the loan documents as well as assure they meet the respective FHA product guidelines for which they are being submitted. This process will ensure timely endorsement of FHA insurance for the loan.

Lenders must certify that the candidate meets the DE qualifications of that specific lender and upon that certification, registers the candidate with HUD. Upon completion, the candidate will receive a CHUMS unique identifier number. (Computerized Home Underwriter Management System)

Steps for nomination by the lender:

  • Take a great FHA course as provided by Diehl and Associates. We have a unique twelve (12) hour class (DEUP) that covers all the basics of FHA processing and underwriting and will prepare the candidate for basic FHA underwriting with a HUD approved lender under the tutelage of a senior FHA underwriter.
  • Get a certificate of completion for all courses (including Diehl’s advanced FHA class) that are taken in conjunction with all preliminary work done in this endeavor.
  • Apply for and secure a DE underwriting position with a HUD approved lender.
  • Each lender has its own requirements before nominating a candidate for DE status. There are no HUD requirements, per se, for the issuance of a CHUMS number. Again, the lender is responsible for the actions and decisions of the DE underwriter and therefore has its own “test requirements” for approval. Almost universally, the candidate will have to underwrite test cases (15-25) which are live files that will be reviewed by a senior DE underwriter upon underwriting completion by the candidate. Upon successful completion of all lender requirements, a CHUMS number will be requested by the lender. Some lenders also require an internal test of product knowledge and underwriting expertise.

Happy Underwriting!

January 10, 2015 In: Uncategorized Comments (23)

Comments

  • September 8, 2015

    What is the total cost

    • December 1, 2015

      Hello Ledlie,
      Thank you for your inquiry about our FHA and VA courses. I apologize for the delayed response as these inquiries were going to a previously unchecked email address.

      The retail price of this 8 hour course is $499 but we have a promocode to take $50 off that price if you register in December.

      This course has been completed updated–our trainer takes you on a “guided tour” of the New FHA Handbook, all the changes/updates and the impacts of those.

      We will also be scheduling a VA Webinar in Q1 of 2016 and please be sure to check our website for new courses.

      Enjoy your holidays and let me know if you have further questions or need assistance in signing up!
      Renae

      • December 28, 2015

        Is this an online course? Is the entire course cost $499 and then you become an Underwriter?

        • February 12, 2016

          No, the course is a two-part live interactive webinar.
          In answering your question about becoming an underwriter… currently we offer a course in FHA Underwriting. That being said, each lender has its own requirements before nominating a candidate for DE status. There are no HUD requirements, per se, for the issuance of a CHUMS number. Again, the lender is responsible for the actions and decisions of the DE underwriter and therefore has its own “test requirements” for approval. Almost universally, the candidate will have to underwrite test cases (15-25) which are live files that will be reviewed by a senior DE underwriter upon underwriting completion by the candidate. Upon successful completion of all lender requirements, a CHUMS number will be requested by the lender. Some lenders also require an internal test of product knowledge and underwriting expertise.

          We are in the process of developing an Underwriter course that is not specific to FHA, VA or USDA, but discusses all loan types. We will keep you posted through the website in the next few months.

          What our course DOES do… It provides excellent up-to-date FHA training to either gain or enhance FHA underwriting knowledge. We developed this course by combing 600 pages in the new handbook and identifying changes, updates and information necessary to underwrite FHA loans for a variety of scenarios. Hundreds of hours of development have gone into this course by our team and underwriters find great value in not having to do that legwork themselves.

          Diehl has been training FHA courses since 1983 and we have a great reputation in the industry and our customers tell us over and over again after taking this class.

  • Diana BantonLeave a Reply
    September 22, 2015

    The what is the cost of the (DEUP) class? When and how can one take this Class. After completion of the class; what next. Does all DE Lenders recognized the issued certificate from Diehl and Associates

    • December 1, 2015

      Hi Diana,

      Thank you for your inquiry about our FHA course. I apologize for the delayed response as these inquiries were going to a previously unchecked email address.

      Diehl and Associates has been doing FHA training since 1983 and are well respected in the industry. We have had over 30,000 UWs and Processors take our classes and we are currently training all UWs and processors in one of the largest mortgage lenders in the country.

      Our FHA DE Course definitely provides the most up-to-date information for UWs to learn how to process and underwrite FHA loans. This course has been completely updated and our trainer takes you on a “guided tour” of the New FHA Handbook, all the changes/updates and the impacts of those.

      The retail price of this 8 hour course is $499 but we have a promocode to take $50 off that price if you register in December.

      This course has been completed updated–our trainer takes you on a “guided tour” of the New FHA Handbook, all the changes/updates and the impacts of those.

      We wrote a nice article about becoming a DE Underwriter that I think will explain the process even better than I could on the phone. That being said, please feel free to reach out with any further questions about our class or to register.

      Click this link for more information on becoming a DE Underwriter
      http://fhatraining.com/how-to-become-an-fha-de-underwriter-2/

      Thank you!
      Renae
      317-272-7600 X102

  • Daniel GreeneLeave a Reply
    September 30, 2015

    I want to become a DE certified underwriter. What steps do I need to take? Many thanks,
    Daniel M. Greene
    310-993-2938

    • December 1, 2015

      Hi Daniel,
      Thank you for your inquiry about our FHA course. I apologize for the delayed response as these inquiries were going to a previously unchecked email address.

      Our FHA DE Course definitely provides the most up-to-date information for UWs to learn how to process and underwrite FHA loans. This course has been completely updated and our trainer takes you on a “guided tour” of the New FHA Handbook, all the changes/updates and the impacts of those.

      We wrote a nice article about becoming a DE Underwriter that I think will explain the process even better than I could on the phone. That being said, please feel free to reach out with any further questions about our class or to register. WE do have a promo for $50 off the course price during the month of December and we have a webinar series starting next week.

      Click this link for more information on becoming a DE Underwriter
      http://fhatraining.com/how-to-become-an-fha-de-underwriter-2/

      Thank you!
      Renae
      317-272-7600 X102

  • October 7, 2015

    Curious about DE training classes. Please send information. Thank you.

    • December 1, 2015

      Hi Buffy,
      Thank you for your inquiry about our FHA course. I apologize for the delayed response as these inquiries were going to a previously unchecked email address.

      Our FHA DE Course definitely provides the most up-to-date information for UWs to learn how to process and underwrite FHA loans. This course has been completed updated–our trainer takes you on a “guided tour” of the New FHA Handbook, all the changes/updates and the impacts of those. That being said, it is important to note that in order to become a DE, an UW must be sponsored by a lender in order to get his/her CHUMS number.

      Click this link for more information on becoming a DE
      http://fhatraining.com/how-to-become-an-fha-de-underwriter-2/

      Here is an outline of what is covered in the 8 hour FHA Live interactive webinar:
      FHA Training Topics
      • Advantages of FHA financing
      • ADP Codes
      • MIP
      • Forms
      • Maximum Loan Amounts
      • Repairs
      • Maximum LTV/CLTV
      • Identity of Interest
      • Mortgage Credit Analysis
      • DTI
      • Compensating Factors
      • Manual Underwriting
      • Occupancy
      • Debts
      • Credit
      • Income
      • Inducements and Concessions
      • Assets
      • Secondary Financing
      • Work Equity
      • Total Scorecard
      • Appraisals
      • Property Flipping
      • Manufactured Homes
      • Condominiums
      • New Construction
      • Refinances
      • Good Neighbor Next Door
      • ARMs
      • FHA QM
      • Loan Transmittal

      Enjoy your holidays and let me know if you have further questions or need assistance in signing up!
      Renae

  • Phyllis GreggLeave a Reply
    October 19, 2015

    I am new to San Diego and looking for work as a Commercial Underwriter. I have over 25 years of underwriter experience. But, I notice most employers are looking for candidates with a FHA DE/CHUMS &/or LAPP/SAR certification. I am interest in learning more about your certified program. You can reach me by email at phyllis.gregg3@yahoo.com. Thank you so much for your quick response.

    Sincerely,

    Phyllis Gregg

    • December 1, 2015

      Hi Phyllis,
      Thank you for your inquiry about our FHA course. I apologize for the delayed response as these inquiries were going to a previously unchecked email address.

      Our FHA DE Course definitely provides the most up-to-date information for UWs to learn how to process and underwrite FHA loans. This course has been completed updated–our trainer takes you on a “guided tour” of the New FHA Handbook, all the changes/updates and the impacts of those. That being said, it is important to note that in order to become a DE, an UW must be sponsored by a lender in order to get his/her CHUMS number.

      Click this link for more information on becoming a DE
      http://fhatraining.com/how-to-become-an-fha-de-underwriter-2/

      Here is an outline of what is covered in the 8 hour FHA Live interactive webinar:
      FHA Training Topics
      • Advantages of FHA financing
      • ADP Codes
      • MIP
      • Forms
      • Maximum Loan Amounts
      • Repairs
      • Maximum LTV/CLTV
      • Identity of Interest
      • Mortgage Credit Analysis
      • DTI
      • Compensating Factors
      • Manual Underwriting
      • Occupancy
      • Debts
      • Credit
      • Income
      • Inducements and Concessions
      • Assets
      • Secondary Financing
      • Work Equity
      • Total Scorecard
      • Appraisals
      • Property Flipping
      • Manufactured Homes
      • Condominiums
      • New Construction
      • Refinances
      • Good Neighbor Next Door
      • ARMs
      • FHA QM
      • Loan Transmittal

      Enjoy your holidays and let me know if you have further questions or need assistance in signing up!
      Renae

  • October 21, 2015

    Please send me class curriculum and cost for DE/VA Underwriting training. I am wanting to get DE – endosement to get my active Chums.

    • December 1, 2015

      Hi Claire,

      Thank you for your inquiry about our FHA and VA courses. I apologize for the delayed response as these inquiries were going to a previously unchecked email address.

      Our FHA DE Course definitely provides the most up-to-date information for UWs to learn how to process and underwrite FHA loans. This course has been completed updated–our trainer takes you on a “guided tour” of the New FHA Handbook, all the changes/updates and the impacts of those. That being said, it is important to note that in order to become a DE, an UW must be sponsored by a lender in order to get his/her CHUMS number.

      Click this link for more information on becoming a DE
      http://fhatraining.com/how-to-become-an-fha-de-underwriter-2/

      Here is an outline of what is covered in the 8 hour FHA Live interactive webinar:
      FHA Training Topics
      • Advantages of FHA financing
      • ADP Codes
      • MIP
      • Forms
      • Maximum Loan Amounts
      • Repairs
      • Maximum LTV/CLTV
      • Identity of Interest
      • Mortgage Credit Analysis
      • DTI
      • Compensating Factors
      • Manual Underwriting
      • Occupancy
      • Debts
      • Credit
      • Income
      • Inducements and Concessions
      • Assets
      • Secondary Financing
      • Work Equity
      • Total Scorecard
      • Appraisals
      • Property Flipping
      • Manufactured Homes
      • Condominiums
      • New Construction
      • Refinances
      • Good Neighbor Next Door
      • ARMs
      • FHA QM
      • Loan Transmittal

      Enjoy your holidays and let me know if you have further questions or need assistance in signing up!
      Renae

  • Les BoldenLeave a Reply
    October 26, 2015

    Please contact me regarding your DE courses. I have Underwriting experience, but not having a Certificate is keeping me form getting certain jobs. Thanks.

    • December 1, 2015

      Hi Les,

      Thank you for your inquiry about our FHA and VA courses. I apologize for the delayed response as these inquiries were going to a previously unchecked email address.

      Our FHA DE Course definitely provides the most up-to-date information for UWs to learn how to process and underwrite FHA loans. This course has been completed updated–our trainer takes you on a “guided tour” of the New FHA Handbook, all the changes/updates and the impacts of those. That being said, it is important to note that in order to become a DE, an UW must be sponsored by a lender in order to get his/her CHUMS number.

      Click this link for more information on becoming a DE
      http://fhatraining.com/how-to-become-an-fha-de-underwriter-2/

      Enjoy your holidays and let me know if you have further questions or need assistance in signing up!
      Renae

  • harold correaLeave a Reply
    November 3, 2015

    DE UW initial course’s cost?

    • December 1, 2015

      Hi Harold,
      Thank you for your inquiry about our FHA and VA courses. I apologize for the delayed response as these inquiries were going to a previously unchecked email address.

      The retail price of this 8 hour course is $499 but we have a promocode to take $50 off that price if you register in December.

      This course has been completed updated–our trainer takes you on a “guided tour” of the New FHA Handbook, all the changes/updates and the impacts of those.

      We will also be scheduling a VA Webinar in Q1 of 2016 and please be sure to check our website for new courses.

      Enjoy your holidays and let me know if you have further questions or need assistance in signing up!
      Renae

  • Janey CasianoLeave a Reply
    November 4, 2015

    Please provide information on training for FHA DE Underwriter for insuring with HUD.

    • December 1, 2015

      Hi Janey,

      Thank you for your inquiry about our FHA DE Course. I apologize for the delayed response as these inquiries were going to a previously unchecked email address.

      The retail price of this 8 hour course is $499 but we have a promocode to take $50 off that price if you register in December.

      This course has been completed updated–our trainer takes you on a “guided tour” of the New FHA Handbook, all the changes/updates and the impacts of those.

      We will be scheduling a VA Webinar in Q1 of 2016 so please be sure to check our website for new courses.

      Enjoy your holidays and let me know if you have further questions or need assistance in signing up!
      Renae

  • November 14, 2015

    Where is the pricing located for FHA and VA?

    • December 1, 2015

      Hi Amy,

      Thank you for your inquiry about our FHA and VA courses. I apologize for the delayed response as these inquiries were going to a previously unchecked email address.

      The retail price of this 8 hour course is $499 but we have a promocode to take $50 off that price if you register in December.

      This course has been completed updated–our trainer takes you on a “guided tour” of the New FHA Handbook, all the changes/updates and the impacts of those.

      We will be scheduling a VA Webinar in Q1 of 2016 so please be sure to check our website for new courses.

      Enjoy your holidays and let me know if you have further questions or need assistance in signing up!
      Renae

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