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It's hard to say because it depends on your frame of reference. I will say that my M2C does not feel light at all getting out of a light car like a 3000 lb FWD car and I assume E36 is similar in weight. It also felt like stock it has more body roll than my old Z4M. That said, I would not say it felt understeery at all to me. It is much more confidence inspiring than the Z4M. I last drove a modified E36 in 2005 so it's really hard to compare. That car was light and stable but it had coilovers and was really dialed in. I have to think there is something going on with your car but who knows. Maybe you can let another owner drive it or vice-versa at a meet etc.
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