commercial underwriting?
What exactly does a commercial credit underwriter do and what are the exit ops from this position?
I understand equity underwriting, but would this be for more of a commercial loan issuance and would it be a good transition to distressed debt/ mezz funds?
What is a credit underwriter
The main difference between a credit analyst and credit underwriter is that the underwriter puts together the package while the analysts assist in analyzing the guarantor. In other words, an underwriter is a more experienced analyst. An underwriter performs due diligence on an investment. For example, you look at potential rent revenue, operating expenses, acquisition costs. With this information, you create a financial model to determine if a project/investment fits your risk profile and the company’s asset profile.
Exit Opps For An Underwriter
User @sk8247365 shares his insight for underwriter exit opps:
I think it would be very good for a transition to distressed/mezz, and those, along with REPE, AM, and REHF are some of the exit ops. Of course you will be competing with REIB people and such (as always) but I would hire someone who did commercial credit underwriting to work distressed over someone who worked M&A.
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I think it would be very good for a transition to distressed/mezz, and those, along with REPE, AM, and REHF are some of the exit ops. Of course you will be competing with REIB people and such (as always) but I would hire someone who did commercial credit underwriting to work distressed over someone who worked M&A.
Take this with a grain of salt because i have never met or looked at a jd for a commercial credit underwriter but assuming they look at a property, comparable info, financials, guarantors, and purchase price to see if the borrower will be able to afford the pmts, then what I said above should hold true.
I would also post this question in asset management.
I'm currently working as a credit analyst at a BB but got asked to interview at a smaller bank to do commercial loans underwriting in a different city. So far I dont really know what it would involve. Im pretty sure its similar analysis to what I do now but it would just deal more with structuring the loans instead of just analysis.
You described it perfectly. Only difference between a credit analyst and underwriter is the underwriter actually puts together the package while the analyst assists in analyzing the borrower/guarantor.
99% sure it is probably exactly what you are doing now. One large BB used to call its commercial banking analysts "underwriters"
Commercial Underwriting/Lending path out of college (Originally Posted: 05/14/2015)
Hello all,
I graduate next year with a double major in accounting and finance. I'm currently interning for a F1000 as a rotational intern working on expense analysis, tax liabilities, and transnational accounting work. I've been exposed and shadowed so many professionals that I now have a better idea of what corporate finance at a large company is really about and I want to explore banking opportunities now. I come from a family of bankers and never really thought about the profession until recently.
I have absolutely zero experience in underwriting, but I'm sure I can score some projects this summer that I could leverage in an interview to become an underwriter.
Is underwriting the traditional path to lending?
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