SitusAMC
Is SitusAMC loan servicing that bad? Will I want to poke my eyes out after a month?
Has anyone who worked for SitusAMC or a 3rd party loan servicing chime in? I enjoy reading legal documents but that was when I was on the principal side. Will I have the same motiviation if my equity or the firm's equity is not on the line?
I am currently unemployed. Previously, I was an acquisition analyst 2YOE.
Based on the most helpful WSO content, working in loan servicing, particularly at a 3rd party like SitusAMC, can be a mixed bag. Some users have shared that loan servicing roles, especially in Debt Asset Management (AM), can feel less rewarding compared to principal-side roles. The lack of direct equity involvement or "skin in the game" might indeed impact your motivation, as you won't have the same level of personal or firm equity at stake.
However, there are some upsides to consider. Debt AM professionals often highlight the opportunity to work with a variety of stakeholders and gain exposure to different areas, such as underwriting (UW) or relationship management (RM). This can be valuable if you're looking to pivot or advance your career in the future. Additionally, during economic downturns, Debt AM roles can become more critical and engaging, as they involve managing distressed assets and navigating complex situations.
If you're currently unemployed, this role could serve as a stepping stone while you explore other opportunities. It might not be as exciting as acquisitions, but it could help you stay relevant in the market and expand your network. Staying flexible and thinking strategically about your next move will be key.
Sources: RE loan assets management, Dealing with PM (equities) who is trying to limit your progress, Advice From a Seasoned Equity Analyst, What is your compensation in Real Estate Finance?, Hirevue JPMorgan Chase SA 2019 Asset Management???
Is this debt AM or actual loan servicing (billing, escrow analyses, etc)?
Debt AM
Depends on what group you work for and the quality of work you're doing. If the firm you're representing has no in-house debt AM folks, you'll likely be more hands on but if it's the opposite, you might be an extension of the servicing team
Where is the role, who is the client? Why the switchfrim acquisitions to debt AM?
Haven't heard the best things about them but if you need a role soon it doesn't hurt to give them a chance. MIght also be good to get some interviewing experience under your belt also even if you may not take the job.
Situs is a 3rd party servicer that also provides asset management for many of its clients. The company has gone through a lot of turnover and the rumor is that they are for sale with a goal of YE 2025. So right now they are focusing on margin per clients so doing the most with the fewest amount of staff. This is causing a lot of stress for those that remain.
They have offices in Kansas City, Atlanta, Houston and NYC. Many of the staff work remotely but you need to be in the office 2-3 days a week if you live within 25 miles of an office.
Understand that you are not the main decision maker for a client, just providing support. So you get treated as a 3rd class citizen. Many people find a nice fit with them, put there heads down and get paid. But you will never get rich and not the best place if you are looking to move to bigger and better things.
Edit* Also, they rely on Activtrack, so you will have every keystroke monitored. Some managers will live and die on those reports, others will only care that you are getting your work done, so it's not an issue. But knowing that you have to continually prove you are working can be stressful. On top of the lack of support the company is giving.
Avoid if possible. Would go for a MSRED or MSF if you're having trouble landing something. Cast a wide net at REPE shops (acq/am/portfolio), even taking a legit CRE brokerage role would be preferable until you snag another buyside offer.
Is it that bad?
Don't do it
The work can be interesting but you will always be one step removed from actual decision making. So if a draw request, modification, etc. comes in you can review it make a recommendation to the lender, but then it goes back to lender and into a black hole. Most times lender will go with your recommendation. But on more complicated items, such as a loan modification, potential default, assumption or other restructuring, you will be left out of the loop. After your recommendation that may be the last time you hear of the issue until the request to make a change in the system is required (Enterprise!).
Some people love this, many that want to be in the weeds will not.
But issue with Situs now is that right now it sounds as their focus is cost savings to look attractive to a buyer. So more work with less resources. Bonuses were paid in early March, so this is the time people start leaving causing even more pressure on teams.
I work in a direct competitor shop covering the same scope—you could interchange us on any deal. Here's my quick take:
If your end goal is clear and you're aiming to move to JPM/Goldman/Barclays, then SitusAMC is a solid spot. If that's not your trajectory, think carefully.
Before everyone jumps down my throat about that, here's the rationale: Situs probably has around 600 employees, but only about 200 truly "work at Situs." A significant aspect of their business model is placing employees in-house with clients. At my firm, many are essentially embedded within banks (think JPM/SocGen/MS).
The main downside I see is that the job involves asset management. If I were considering Situs, I'd target their capital markets/securitization team specifically—those guys are genuinely impressive, though it's easy to get lost in the weeds there.
Bottom line: if you go, have a clear exit strategy. Keep your resume sharp and jump at any chance to advance.
Actually I’d say the opposite of what you are saying. Only a few Situs employees fall under what is called Cost+. That is when the client such as Mesa West, Apollo, TPG pays the full freight of a team plus a slight margin to Situs. These people work just for that client and over all decisions are made by that client, such as pay bonuses, promotions etc. In many cases they are treated as employees of the client, outside of where the paycheck comes from (Situs).
But the majority of Situs employees on the CRE side work for teams assigned to a client but are not controlled by client. Some employees even have multiple clients they cover. All decisions are made by Situs, with some input by client should there be a performance issue.
Exiting to one of these clients “could” happen but does not happen on the. regular. Many times the client does not want to burn a bridge with Sitius by “poaching” a worker, especially if they are already working on their team. But if you had an offer to go to another lender, then you may be able to leverage with your client for a position with them if they really liked you.
Agree with keep your resume sharp and jump at new opportunities.
What's the deal with recruiting through Situs now with the potential sale? Saw they had a number of roles posted over the summer that have not moved. I don't recall ever seeing a Situs recruiter email over the years but they post apps here and there.
I think they are being strategic in their hiring and not in a hurry to hire. Lots of people have left due to what people will argue is the disfunction going on. Focus is squeezing as much out of the people there to increase margins. Many team leads and group heads have left or let go over the past year. The new people brought in don’t always know what they are doing or the right fit. At one point the goal was to have a 10-12% margin for each client (lender) to show to a potential buyer.But to do this AND keep clients happy has been difficult and many clients are not profitable to Situs. Teams are stretched thin, overworked. Situs would like to negotiate new Servicing agreements to charge more, but clients want more services for the extra cost.
Word internally is that implementation of the Backshop servicing system is not going well or way behind schedule. Past couple of years they have sold or tried to sell pieces, including Closer, the Valuations group, their insurance group. Would not be surprised if the Residential (AMC) and Commercial sides (Situs) are spit as they really do not complement each other as originally thought when they were combined.
Also many clients are unhappy with all the changes and not being included when decisions are made to their Situs team without input coupled with the uncertainty of what happens after a sale, So they many be looking to find a new servicer.
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