MF Debt Analyst Interview

Was wondering what I can do to prepare for a meeting/interview for a debt analyst position focusing on MF loans? The originator I will be meeting with/working under if I get the job seems to focus mainly on small balance lending Fannie/Freddie loans. What technical questions may I be asked? What calculations should I know? Anything else that would be helpful is greatly appreciated.

Also, it seems like the role is to help me eventually become a producer, which I am definitely interested in. However, if I end up thinking production isn't right for me, what exit opportunities could I land on (considering MSF/MBA/MRED while being an analyst as well).

edit - Might as well throw this in here too - The actual title of the position was referred to as "production analyst". Can anyone specify further to what a production analyst really does? There is no job posting and was briefly explained about the position over the phone.

Comments (10)

Jun 10, 2019

It will probably be pretty straight forward and not too complex. Know how to walk thorugh what line items lead to NOI, calculate LTV, DSCR, Debt yield, and brush up on definitions on things like amortization and loan constant.

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Jun 10, 2019

Pretty easy stuff, sounds good. How about knowing the ins and outs/differences of fannie/freddie?

Most Helpful
Jun 10, 2019

Wouldn't hurt to know the differences between the agencies - their different securitization methods, how that correlates to their prepayment methods, etc.

Assuming this is a good Agency shop, production analyst is where you want to be. You'll working directly with the originators and seeing a ton of deal flow. Every shop is set up a little bit differently, but I bet you'll at least be working on up front loan sizings based off of broker/ borrower packages and helping to get the deal under app. Some shops will even have you quarterback the deal through due diligence until closing. That's excellent experience as you'll be coordinating with third party vendors, attorneys, borrowers, underwriters, etc. This role will 100% set you up to become a producer.

A lot of shops will help pay for a grad degree and will encourage you to pursue one. However, you might be bogged down with your originator's deal flow, so it may not be feasible. If you choose not to go into production, you can definitely parlay this experience to a REPE (multi specialist would be your best bet), development (multi specialist as well), life co., cmbs, balance sheet lending, etc.

Interview will likely be pretty straightforward. Any excel test for multifamily is easy.

Hope that helps amigo.

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Jun 11, 2019

Any chance you know where to find good info of that? Only thing the links that show up from google say is the difference of where they get their loans from (commercial or thrift/small banks).

That's great to hear. Definitely interested in production. The originator I spoke with even said he would have me do some cold calling and networking events, so that experience would help a lot I'm sure. Also going into repe/development would be good if production doesn't work out.

Thank you! Definitely helps.

Jun 12, 2019

Don't know about securitization, but Arbor Capital has good summaries of all the agency loan programs. https://arbor.com/fannie-mae/ Standard Fannie/Freddie, Small Balance, FHA, etc.

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Jun 12, 2019

Very simple answer for fixed rate deals is that Fannie typically utilizes a Yield Maintenance prepay because their securities are single asset MBS's. That means the buyer of that security will want their yield if a Borrower chooses to refinance early. Freddie typically uses Defeasance, as their K-deals are essentially CMBS securitizations. Therefore, when you choose to refi early, the securities need to be replaced just like you would need to do for a traditional CMBS deal. Usually, but not always, Defeasance is a little more costly to the Borrower.

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Jun 12, 2019

I'm actually in the same situation currently as well - opportunity to move from Loan AM to Production Analyst. I'd get underwriting exp and work on a strong deal flow. I'm also wanting to potentially move into REPE or Development if I find I don't enjoy production as much.

Is this move from Production to REPE, Dev or even just an equity side shop in general something you've heard of or seen firsthand?

Jun 14, 2019

And to add, at some shops, a production analyst can simply mean screening or data entry while the underwriting analyst within the underwriting group does the coordinating with third party vendors, attorneys, borrowers, underwriters, etc. It is highly dependent upon the shop. Some production teams really only see the high level 3rd party items that actually make, break, keep the deal chugging along. And at some shops, depending on their structure, you can work on agency and/or balance sheet products being that each have separate pricing/structure options for the borrower.

Also, some shops will screen deals on the production side, and then these deals will then be re-screened within the underwriting side before it is put under app. It keeps everyone honest being that each has different incentives. However, a strong prospective deal will have its advocates from both sides of the table. On the production side, the origination teams will get that first look at things to make sure the line items are classified in the "most lucrative" manner that will still fit into the agency's sand box. Production and underwriting will each size the loans. I am sure you can assume the differences of the credit quality lens each respective team will apply though.

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Jun 13, 2019

Congrats on the opportunity, production is where you want to be. I have seen all of the jumps you just mentioned. Back when I was an analyst, my immediate predecessor jumped to start his own multifamily investing shop, backed by a couple of wealthy dudes. I've seen colleagues go to work for REPE, debt funds, owner/operators, etc. I haven't seen too many go to development (really only one that I can think of), but that's more due to personal preferences. Development can be a little tricky because there are so many skills in that field that you just don't see a whole lot in production. I tend to think that once you get into production, albeit on a successful team, that you became a deal junky. Some development shops only do a few deals a year (if that).

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Jun 14, 2019
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