--- title: The Mortgage Underwriting Process in SpareBank 1 description: The members of the SpareBank 1 Alliance have coordinated and streamlined many processes amongst them. The process for underwriting mortgages to retail customers is common across the alliance and the banks share the same systems and models that are part of their underwriting routines. image: https://spabol.sparebank1.no/hubfs/img/articles/houses.jpg --- [![Boligkreditt](https://spabol.sparebank1.no/hubfs/img/boligkreditt-logo.png) ](https://spabol.sparebank1.no) Search ## The Mortgage Underwriting Process in SpareBank 1 ![The Mortgage Underwriting Process in SpareBank 1](https://spabol.sparebank1.no/hubfs/img/articles/houses.jpg) The members of the SpareBank 1 Alliance have coordinated and streamlined many processes amongst them. The process for underwriting mortgages to retail customers is common across the alliance and the banks share the same systems and models that are part of their underwriting routines. When a customer visits a local branch office or uses the online banking website, the customer service representative will gather information from the customer and run this information through a centralized scoring algorithm that uses data from an internal database for performance history and external database that has tax assessment data and payment default information. Based on this input, each customer is assigned a rating using the common scoring models of SpareBank 1. The customers are subjected to a test of debt servicing capacity. Debt servicing capacity is evaluated by a national model* that is based on standardized household budgets, the cost of financing and considering a 5% increase in interest rates (this is a stress test that the vast majority of mortgage applications are subject to in all Norwegian banks). The interest stress test is important also because most mortgage loans are on a variable rate basis, meaning that the bank has the flexibility to change the rate after notifying the customer about this six weeks in advance. Customers on the other hand may easily change their bank and mortgage provider if they feel they are able to obtain a better interest rate and considering their overall banking needs somewhere else.  The valuation of the residential property which is pledged as security for a mortgages loan is initially performed by an independent appraiser (who may be a licensed real estate agent) and is subsequently (quarterly) tested and evaluated by Eiendomsverdi which is a highly regarded provider of property valuation through the use of an automated valuation model (AVM). Eiendomsverdi’s data covers all transactions in Norway since the mid-1990s. *The SiFO model, developed by the governmental National Institute for Consumer Research. ![process-chart](https://spabol.sparebank1.no/hs-fs/hubfs/img/articles/process-chart.jpg?width=731&name=process-chart.jpg)   - [ Previous article ](https://spabol.sparebank1.no/articles/what-is-a-norwegian-savings-bank) × ### Terms and Conditions The following page sets out important legal and regulatory information about all materials contained on the SpareBank 1 Boligkreditt AS website (www.spabol.no). This page is designed to prevent unsuitable categories of investors from accessing materials contained on this website. Please read this page carefully before proceeding any further as you will be asked to accept these terms and conditions before proceeding. BY ACCESSING OR USING ANY PAGE OF THIS WEBSITE, YOU AGREE TO BE BOUND BY THE TERMS AND CONDITIONS BELOW. IF YOU DO NOT AGREE TO SUCH TERMS AND CONDITIONS, YOU SHOULD EXIT THIS WEBSITE IMMEDIATELY. The information contained on this website does not constitute, and may not be used as, an offer or solicitation to buy or sell securities in the United States or to US Persons or in any jurisdiction or jurisdictions in which such offer or solicitation is unlawful prior to registration or qualification under the securities laws of any such jurisdiction. As a result of these restrictions, you are advised to consult legal counsel prior to making any investment decisions with respect to any materials contained on this website.  The materials published on this website are intended for authorised use only and may not be published, copied or distributed to any other person. The information contained in the materials displayed on this website is highly confidential and may not be disclosed or distributed to anyone without SpareBank’s prior written consent. SpareBank has the right to suspend or withdraw your access to all or any part of this website without prior notice at any time. You are certifying that (a) by clicking the button "I Agree - 144A" below you are a "Qualified Institutional Buyer" as this term is defined in Rule 144A under the U.S Securities Act of 1933 (the "Securities Act") or (b) by clicking the button "I Agree NON-US" below you are not a U.S person (as defined in Regulation S of the Securities Act) nor are you a resident of or located inside the United States. If you cannot so certify, you must click the button "I Disagree" and exit this website immediately. Clicking on button “I Agree – 144A” or “I Agree NON-U.S.” shall have the same force and validity as a manual signature and delivery.  [I agree - NON U.S. ](https://spabol.sparebank1.no/coverpool/non-us-report-archive) [ I agree - 144A](https://spabol.sparebank1.no/coverpool/us-report-archive) I disagree × ### Terms and Conditions The following page sets out important legal and regulatory information about all materials contained on the SpareBank 1 Boligkreditt AS website (www.spabol.no). This page is designed to prevent unsuitable categories of investors from accessing materials contained on this website. Please read this page carefully before proceeding any further as you will be asked to accept these terms and conditions before proceeding. BY ACCESSING OR USING ANY PAGE OF THIS WEBSITE, YOU AGREE TO BE BOUND BY THE TERMS AND CONDITIONS BELOW. IF YOU DO NOT AGREE TO SUCH TERMS AND CONDITIONS, YOU SHOULD EXIT THIS WEBSITE IMMEDIATELY. The information contained on this website does not constitute, and may not be used as, an offer or solicitation to buy or sell securities in the United States or to US Persons or in any jurisdiction or jurisdictions in which such offer or solicitation is unlawful prior to registration or qualification under the securities laws of any such jurisdiction. As a result of these restrictions, you are advised to consult legal counsel prior to making any investment decisions with respect to any materials contained on this website.  The materials published on this website are intended for authorised use only and may not be published, copied or distributed to any other person. The information contained in the materials displayed on this website is highly confidential and may not be disclosed or distributed to anyone without SpareBank’s prior written consent. SpareBank has the right to suspend or withdraw your access to all or any part of this website without prior notice at any time. You are certifying that (a) by clicking the button "I Agree - 144A" below you are a "Qualified Institutional Buyer" as this term is defined in Rule 144A under the U.S Securities Act of 1933 (the "Securities Act") or (b) by clicking the button "I Agree NON-US" below you are not a U.S person (as defined in Regulation S of the Securities Act) nor are you a resident of or located inside the United States. If you cannot so certify, you must click the button "I Disagree" and exit this website immediately. Clicking on button “I Agree – 144A” or “I Agree NON-U.S.” shall have the same force and validity as a manual signature and delivery.  [I agree - NON U.S.](https://spabol.sparebank1.no/coverpool/non-us-investor-presentations) [ I agree - 144A](https://spabol.sparebank1.no/coverpool/us-investor-presentations) I disagree