what is an underwriter 
an underwriter is any party usually a member of a financial organization that evaluates and assumes another party s risk in mortgages insurance loans or investments for a fee usually in the form of a commission premium spread or interest underwriters try to determine the likelihood that a borrower will pay as promised and that enough collateral is available if there s a default in the case of insurance underwriters seek to assess a policyholder s health and other factors and spread the potential risk among as many people as possible 1