Updated October 9, 2017
What does a Mortgage backed securities Job entail?
To start lets consider an event that shook America in a big way back in 2008. The crash of the American economy was primarily due to pools and pools of defunct mortgages (resident or commercial properties) that could not be paid off by the lendees. Basically to many people, with to high of loans, way over their heads.
Lending companies bundled these weak mortgages and sold them to investment firms as “Mortgaged Backed Securities”, when in fact they were not so secure. incidentally these bundles lost exponential value in a hurry and left us with one of the biggest recessions since the great depression.
Now, in the light of 2008 there has been a great demand for Mortgage Backed Security Analyst and Financial Analyst. These positions exist to ensure that the investments being traded are truly valuable, not full of hot air. Hines sight is 20/20 and investment firms are now eager to protect themselves from another slight of hand move to put them out of business. As a Mortgage Back Securities Analyst you can work on either the sellers or the purchasers side of the transaction.
Mortgage Backed Security Analyst Skills:
- Identify investment opportunities (basic first step to your work)
- On the purchasers side you will analyze investments for value, growth opportunity, and risk
- On the Sellers side you will underwrite and prepare bundles to be sold to a purchaser
- This side may sound easy, but consider, you are trying to sell packages that caused a recession. With that in mind, these purchasers are going to be extra careful and you are going to want to make these deals as fool proof and attractive as possible.
- Compile and analyze large amounts of data to provide reporting and trending of key performance indicators to senior management. (Keeping an eye on the market)
- Deep understanding of how to Qualify Residential and Commercial Mortgages
Jobs Available Right Now!
Huntington Bank Home Mortgage Reporting Analyst ($65k glassdoor est.)
Wells Fargo Securities Analyst
- CitiGroup Residential Mortgage Analyst ($50k glassdoor est.)
Education Needed for Mortgaged Backed Securities Analyst
Most companies will be looking for a bachelors degree in finance, accounting, mathematics, economics, statistics, etc… but if you can prove your knowledge of the business and get an internship while taking courses online you just MIGHT be able to have a leg up on a lot of those degree holding inexperienced folk.
1 ) Mortgage Backed Securities (MBS): Part I from the New York Institute of Finance
Learn about the characteristics of U.S. mortgage-backed securities and various agencies within the market in this comprehensive overview.
2 ) Mortgage Backed Securities (MBS): Part II from the New York Institute of Finance
Gain in-depth knowledge of the U.S. MBS market and learn about basic features of agency and non-agency CMOs as well as important types of tranches.
3 ) Financial Analysis for Decision Making from Babson College Online
Once you understand the ins and outs or Mortgage Backed Securities you must know how to analyze their potential. Learn how to analyze business opportunities for their financial viability and secure funding to start and grow businesses.
Don’t wait any long. Get started now in building your skills to become a Mortgaged Backed Securities Analyst