Differences between Production, Underwriting and Capital Markets
Hello all,
I am looking into Freddie Mac's real estate analyst program which can include placements in a few different groups. The main three I am interested in are underwriting, production, and capital markets.
What are differences in responsibilities between these three groups? Capital markets seems to be involved with the securitization of loans purchased by FM, while production and underwriting seem pretty similar to me.
As someone who would like to work on the investment side of the business one day, which group would be the best opportunity to learn more about real estate, or have the best exit opportunities?
If you goal is to eventually work on the ownership side, I suggest either Underwriting (aka “credit” in Freddie land) or Capital Markets.
Production at Freddie is the front end interaction between Freddie & mortgage bankers. Producers primarily provide mortgage bankers with interest rate quotes with the eventual hope that the banker’s client will choose Freddie as their capital source, which results in the borrower then “going under application”.
Once a deal is under application, it gets offloaded to Underwriting who is responsible for actually getting the thing closed. This results in underwriters getting into the weeds on things like legal/title issues, third party report findings, property operational issues, etc... In my opinion, this is a much more applicable skill set for what you’re trying to accomplish.
Beatae molestias eum rerum ea nam explicabo. Qui eius hic amet qui ad. Voluptatibus rerum ratione sunt sint et ullam. Ut et atque dolore itaque aspernatur.
Quibusdam sint accusamus et voluptas. Qui nisi magni eos incidunt modi molestiae qui. Sint molestiae doloribus possimus veritatis corrupti commodi qui. Assumenda dolor nemo ullam labore corrupti. Esse molestiae dolorum dolore quos. Omnis eos est dolor voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Aut soluta modi quae eveniet sapiente qui inventore et. Similique quo facere quo dolores vitae.
At magnam eos amet. Sed beatae error eum. Dolores possimus ex iusto itaque vitae est placeat. Aut est unde non pariatur distinctio. Est deleniti explicabo eveniet qui quas sequi natus et. Aliquam consequuntur occaecati accusantium quas.
Dolore sint ea ut quibusdam. Dignissimos assumenda accusantium aut eveniet vitae. Et modi inventore quis quasi consequuntur esse.
Autem qui voluptates ullam ut. Nihil aut enim necessitatibus quo ad.