Professional Underwriters

We know homeownership is a large part of the economy and a Direct Endorsement (DE) underwriter plays a key role in that economic sector. Becoming a DE requires proper product and on the job training.  By working under the tutelage of a seasoned DE, this individual can effectively utilize their acquired skills and training in conjunction with critical decision making resulting in an informed underwriting decision. 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)

Handbook 4000.1 Section 1.B.3.b identifies the eligibility requirements as follows:

  • Have a minimum of three years full-time experience reviewing credit applications and one- to four-unit property appraisals, within the past five years; or,
  • Have a minimum of two years full-time experience reviewing credit applications and one- to four-unit property appraisals, within the past three years, combined with an additional three years of such full-time experience within the past ten years; and
  • Be a full-time employee of a single Mortgagee; and
  • Be authorized to bind the Mortgagee in matters involving origination of mortgages.

Steps for Nomination by the Lender:

  • Take a comprehensive FHA course as provided by Diehl Mortgage Training and Compliance. 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.
  • 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!