Agency to CMBS?

Based on the most helpful WSO content, here’s what you need to know:

Agency and CMBS underwriting have some key differences. Agency loans typically offer more flexibility, such as floating rate options and early rate lock, which are not as common in CMBS without purchasing a hedge. Additionally, agency loans are often serviced by the originator's company, providing better servicing and more flexibility in terms of remedies like supplementals. CMBS loans, on the other hand, are generally priced over swaps and may involve more rigid structures.

In terms of team structure, CMBS groups may not function exactly like agency teams. While agency underwriting/origination duties are often siloed as you move up the ranks, CMBS teams can vary depending on the firm. However, the work in CMBS tends to be more market-driven and may involve different pricing mechanisms and risk assessments compared to agency loans.

If you're considering a move, it’s worth noting that agency work is often seen as more stable, with better servicing and flexibility, while CMBS might offer a different pace and exposure to broader market dynamics.

Sources: Q&A:Commercial Banking SVP Ask Me Anything, https://www.wallstreetoasis.com/forum/real-estate/state-of-the-cre-debt-markets?customgpt=1, Q&A:Commercial Banking SVP Ask Me Anything, Day in the Life--Middle Office (Risk), Day in the Life--Middle Office (Risk)