i currently am an underwriting analyst and a shop like Greystone, Arbor, Hunt in NYC. we are one of the largest fannie mae / Freddie Mac underwriters and I pretty much only work on fannie/freddie deals. they're all affordable housing assets with HAP or section 8 contracts and the assets themselves are b to c properties. needless to say underwriting these shitty properties sucks.
my questions is, if i move to a bank or insurer will i underwrite better properties / not get so many fannie deals? i guess i would have to move to more of a balance sheet lender.
i want to underwriter better properties that are not affordable / rent restricted.
any tips on how to make that happen?
Worked in Comm Banking as an underwriter for four years before moving into acquisitions. Depending on the risk appetite of the lender you will underwrite all sorts of different deals and properties.
You'll only see Fannie/Freddie deals if you work for one of the ~26 Agency lenders with a Fannie or Freddie license. These shops get the bulk of Multifamily deals these days with a few exceptions that go lifeco. There are several banks with Agency franchises (Regions, SunTrust, M&T, Wells, PNC) but most banks are strictly balance sheet lenders. If you go to a bank or lifeco, you'll mostly see low leverage, conservative office/retail/industrial deals with good sponsorship or perhaps some construction deals at a bank. If you like Multifamily but hate affordable product, you need to try to move over to the conventional side of your shop.
is making the switch from multifamily to office/industrial/retail easy? or is it difficult to get interviews?
As far as I'm concerned, 90% of underwriting any deal involves the same basic steps with the additional 10% being nuances specific to an asset class which can be learned over time. If you understand the major components of a CRE deal, e.g. how to evaluate a sponsor, gauge market dynamics, review of 3rd party reports/collateral condition, understand collateral income/expenses, etc., you can underwrite pretty much anything according to your employer's internal credit policies. As I tell my guys, underwriting may be complex but it's not complicated.
Fannie and Freddie are pretty picky with how the files are to be delivered.
Depending on which bank, or CU you land at the collateral will be rather diverse. UW's can make pretty good money with Agency deals. You're not going to make $120k plus bonus at a bank or CU. And the culture is different. Working for some banks is like working for a city water department. No sense of urgency.
Curious, whats your salary like at your shop? Can you atleast share a range if not an exact number? Did you start off as an analyst before becoming an underwriter? If so, how long did that take? I am trying to see the career progression for an analyst at an bank/intermediary. Is production an option at all within 5 years or no?
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