Just curious what an typical excel model looks like that an originator / analyst on the team does, in comparison to an underwriter. I'm aware the underwriters are probably more complex, but unsure what the originators' models are in comparison. THanks
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Confused by the question generally originations relates to handling the deals from inception all the way to close. Underwriting is a facet of this process
Correct, but as many other threads have said there is a clear difference between the originations analysts and the underwriters, but the people on the originations team still does modeling. Trying to figure out what that exactly consists of.
Loan originators will do very high level math, they're only going to run the NOI, DSCR, and LTV. Everything else is mostly underwriter's job. What I mean is the underwriters will review all the leases, they will review personal net worth statements and guarantees, adjust underwriting (make less aggressive because originators are aggressive to win business). Underwriters might argue that rents are above market and need to be marked down ( :D suck it owner occupied spaces, your $70 PSF NNN lease aint gonna make it through the underwriters). Underwriters will also compile all the above into a full length mortgage presentation 10-15 pages, essentially a deal summary.
Originators run the quick numbers to loan size, and assume everything else will kinda work its self out.
Great insight. Thank you. All-in-all, do you think originators spend more time sourcing deals than doing the math stuff (NOI, DSCR, LTV)?
Totally depends on the shop you are at. For example at my company, the originators take the deal from start to finish. From the initial UW all the way through closing. So we are handling initial contact with the broker, sizing the loan, presenting to portfolio management, then issuing term sheet and if we win the deal, going through the closing process, which entails loan docs, due diligence and third party review and investment committee. Other shops will have two different teams where the originators handle deal sourcing and initial sizing and then the underwriting team will get in the details of the deal structuring and all handle the due diligence, loan docs etc..
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