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Who and what is the purpose of an underwriter? If they are insuring the bank will get there money then why are the banks failing. Is AIG a underwriter?

2 Thoughts on When i got a mg loan .. there was an UNDERWRITER involved. Do they insure the bank?
  1. Reply
    Irish Eyes
    February 16, 2014 at 1:13 pm

    An underwriter is the person that reviews all of the information that you submit with the loan and decides whether or not you have met the guidelines for approval.

    AIG is an insurance company. One of their pieces of the pie was providing PMI (Private Mortgage Insurance). When so many people starting defaulting they started bleeding money.

  2. Reply
    loanmasterone
    February 16, 2014 at 2:05 pm

    An underwriter make sure that all the documents and other information is completed as required by the mortgage investor. This investor is the one that is really putting up the money for your mortgage loan.

    This investor could be a direct lender in some cases, but in all cases once the loan has been completed it will be sold to a large mortgage investment company such as AIG.

    The are not insuring the banks/lenders get their money, they are simply insuring that all the requirements of the investor are met to fund your mortgage loan.

    AIG is an insurance company as well as a purchaser of mortgage instruments.

    I hope this has been of some use to you, good luck.

    “FIGHT ON”

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