Understanding the mortgage system

[Tereal Wilsonn]

Greetings everyone Please help me understand mortgages , what's the purpose of a mortgage company /bank if they still need to get permission from underwriters . Terea

[John Rooster]

Underwriters serve the purpose of a scape goat if the loan application goes bad and your loan needs to be rejected. It is not a coincidence that there is always a significant geographical distance between the underwriter and the loan applicant. Oh, there are probably a couple of other good reasons, that have to do with conforming to FNMA/HUD guidelines and all that, but the scape goat reason trumps all others.