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Full Suite Outsourcing Case Study


Situs Helped Client Return to Top Tier of CMBS Market through Full Suites of Services

When CMBS market returned, bank wanted to rejoin the market but had higher requirements. Situs provided a full suite solution that brought the bank back to a top 10 participant ahead of schedule.

Situation

The financial crisis brought the CMBS market to a standstill and, like many market participants, a global bank had reassigned staff to asset management or reduced their team to a skeleton crew of mostly originators and senior staff. In 2010, the CMBS market began to return, albeit more modestly, and the bank was interested in reengaging. Their challenge was to build out a effective platform that had the flexibility to scale up or down as the market moved. Hiring a new team would have been difficult given the bank’s cost constraints. Also, the bank’s CMBS 2.0 performance metrics required better revenue/profit per employee than pre crisis, which included a new, lengthy onboarding process as a result of increased regulations.

Situs Solution

Situs developed a holistic platform for the bank’s CMBS support involving external dedicated teams, internal seconded employees and contingent staff. Situs’ teams were based in Robbins and Atlanta and their role focused on Loan Sizing/Screening, Underwriting and Securitization. Situs also identified key executives and analysts, and placed them in the bank’s offices as seconded employees. The seconded staff had multiple advantages to the bank including efficiencies in recruiting and significantly faster on-boarding/off-boarding process. Finally, Situs provided contingent staff to work on ad-hoc or infrequent projects such as lease abstracting, hotel specializations, chunky portfolios, AUPs, stress testing, appraisal reviews, warehouse line servicing, loan closing support and more.

Results

The Situs platform worked extremely well and the bank became a top 10 CMBS lender under the target date. The bank was able to improve its ability to scale, meet costs constraints and produce excellent metrics by matching their needs with Situs solutions efficiently and quickly. The Situs platform offered the exact balance of dedicated resources, flexible staffing and contingent resources for the bank to scale as needed with deal flow and opportunities. As a first mover, the bank was able to realize the upside of outsourcing ahead of other lenders.