Commercial Mortgage Underwriter

MCAP•Toronto, ON

3d•Onsite

About The Position

MCAP is seeking an experienced, energetic underwriter to join their growing Commercial Mortgage Group. The individual must have at least 5 years of experience underwriting commercial real estate (with an emphasis on CMHC term and construction) and a strong understanding of standard lending practices, while also finding creative solutions to mitigate risk. The role is results driven and requires work be completed in a timely manner to achieve a high level of client service while meeting established annual volume targets. This position is suitable for someone who enjoys a fast-paced entrepreneurial environment, has meticulous attention to detail along with the ability to multi task and consistently meet deadlines. This position is responsible for the underwriting of both conventional and CMHC loans (focus is primarily term business with some construction) that are generated by the Commercial Originators and approved in accordance with CMG’s delegated authorities. Loans being underwritten are typically in the range of $5M to $30M. Higher and more complex loans may be assigned for training purposes to aid in the individual’s development. General duties will include analyzing property rent rolls and income statements, assessing market conditions and conducting a fulsome financial review of the Borrower and Guarantors to determine their financial strength and experience, alongside any other associated due diligence items in order to prepare applications to CMHC for mortgage insurance, Loan summaries for MCAP or its Investors, and Commitment Letters. The incumbent will coordinate rate sets, loan sales and work closely with the Funding Team to ensure all credit conditions are satisfied. In addition, this position will assist in preparing/presenting documentation for their loan files to the Investor for purposes of sale.

Requirements

Knowledge of conventional, commercial loan underwriting for office, retail, industrial, and other forms of commercial real estate
In depth market knowledge of commercial real estate, as it relates to office, retail, industrial and multi-unit residential market trends, transactions, pricing and cap rates.
Knowledge and understanding of CMHC policies and procedures related to multi – unit residential properties
Minimum 5 years’ experience in a commercial underwriting capacity
Minimum 5 years knowledge of financial statement analysis
Knowledge and understanding of the commercial real estate market
In depth knowledge and understanding of conventional and CMHC term loan underwriting
Some knowledge of CMHC construction financing
Solid experience in analyzing AACI Appraisals, Environmental Reports (Phase I/II etc.), Building Condition reports, PQS reports and other reports relating to commercial real estate finance
Up to date knowledge of current market trends and economic conditions
Proficient with MS Word, MS Excel, MS PowerPoint
Ability to demonstrate initiative/confidence and is decisive.
Exceptional oral and written communication skills
Excellent organizational and time-management skills
Ability to multi-task in a fast-paced environment
Strong analytical and problem-solving skills
Proven ability to foster relationships
Strong customer service skills.
Self-driven, motivated with the ability to work independently and in a team environment
Carries out duties with integrity and takes responsibility for actions
A bachelor’s degree in business/commerce with a minimum of five year’s relevant experience
A minimum of three years’ underwriting experience in commercial real estate including CMHC insured term and construction.

Responsibilities

Obtain all relevant information, i.e., rent roll, property level operating statements, invoices, Borrower/Guarantor financial statements, property management contracts, leases required to complete in-depth loan analysis
Review all third-party reports which may include an appraisal, environmental site assessment, building condition assessment and for new builds, the quantity surveyor report/engineer certificates. Opine on adequacy of the reports and discuss any shortcomings/issues
Complete in-depth loan analysis/underwriting to determine the level of financing available based on acceptable thresholds for loan-to value, loan-to-cost and debt coverage
Review market reports to determine an acceptable capitalization rate in order to determine market value
Review market reports to assess the long-term viability/performance of the property’s rent and occupancy levels
Determine the financial and management capacity of the Borrower and Guarantors; this will include reviewing up to 3 years of financial statements to assess their equity position as well as reviewing the operations of all their real estate assets.
For construction loans, review the Construction Budget to assess reasonableness by reviewing market Cost Guides, assess the experience of the Developer
Review requests to waive bonding and determine the experience and credit worthiness of the sub-trades
Assess all possible exit scenarios, including renewal, refinance or sale.
Take a solution focused approach to underwrite by offering alternative structures and/or funding conditions/solutions as appropriate and discuss with the Origination Team or in some instances the Borrower or its Broker representative.
Prepare a detailed report demonstrating the cashflow analysis and NOI calculation, to ensure LTV, LTC and DSCR are met as per policy. In addition, include property description, market analysis for vacancy and cap rate calculation, financial analysis of the borrowing entity and corporate guarantors, along with confirmation of personal net worth
For CMHC applications, follow a similar process to the above ensuring CMHC’s policies are respected. Provide any additional information they may require to support MCAP’s financing recommendation and negotiate the terms and conditions of the mortgage insurance in order to obtain their approval and obtain the CMHC Certificate of Insurance and accompanying Special Conditions.
Review all third-party reports provided (Appraisal, Building Condition, Environmental and in the case of construction and new rental, that of the Quantity Surveyor)
Explain any discrepancies between third party reports and MCAP’s assessment
Estimate lending value and validate/confirm the third-party property value provided
Review the PQS report to facilitate the first and last insured construction advance, ensuring all CMHC conditions are satisfied, and risk is appropriately mitigated.
Once the loan request has been approved by CMHC and MCAP, prepare a Loan Commitment Letter for submission to the broker or Borrower outlining the terms and conditions reflecting the loan approval
Negotiate any changes requested in coordination with Origination and Legal counsel
Issue Minutes and circulate to MCAP’s Executive Team
Coordinate rate sets with Borrower, MCAP Capital Markets and in the case of conventional loans, the Investor
Work in collaboration with the Funding to proactively ensure all loans fund within targeted timelines by satisfying any outstanding items (including final organizational structure and all other conditions are consistent with original approval)
For any discrepancies noted during the closing process, review and provide a recommendation on how to proceed. Following which a revised Loan Summary and/or Commitment Letter may need to be prepared
Maintain and update the business pipeline to ensure all reporting is accurate
Assist/provide support to management for the CMB loan sale, by organizing and submitting loan related documents for the Investor’s review and approval
Provide market data support for borrower/broker, Investment Management and investor clients as directed
Research and maintain records relating to market conditions (e.g., vacancy rates, rental rates, cap rates, property values)
Present market information to borrower and investor clients
Significant contact with borrowers, CMHC, mortgage brokers, real estate brokers, appraisers and other professionals required. Ability to communicate effectively in order to maintain strong relationships, with a focus on the growth of MCAP’s commercial loan portfolio