| The US mortgage industry is going through a | | | | India has come up as leaders in Mortgage Process |
| technological transition. Mortgage has been on the low | | | | Outsourcing. Other sections of Mortgage Industry |
| priority in terms of automation and outsourcing in whole | | | | which will extend opportunity to outsourcing |
| banking chain. But with increasing interest rates and | | | | organizations will be Brokers. We see lot of activities |
| competition, Mortgage banks are looking for ITO and | | | | happening in area of lead generation and end to end |
| BPO as long term strategic tools. India is fast becoming | | | | loan processing. |
| a Mortgage manufacturing hub, with its strong | | | | North American banking is going through a |
| competitive advantage over other economies like | | | | consolidation phase, it has thrown basket of |
| China, Canada, and Philippines etc. | | | | opportunities in space of BPO. Biggest challenge in any |
| Some reports suggest that the offshore "BPO market | | | | consolidation is the integration of processes and |
| size for the US Mortgage is in the range of $6 - $7.4 | | | | functions. Success of consolidation also depends upon |
| billion. The existing mortgage processing BPO market in | | | | how fast organizations integrate. This is a very |
| India is approximately $150 million and it employs about | | | | resource & cost intensive process and banks |
| 7500 people. It is estimated that the US mortgage | | | | may look for external experts to help them though |
| banking BPO market in India will grow to approximately | | | | their consolidation phase by taking up outsourcable |
| $1 billion over the next 5 years." | | | | processes. Thus reducing the burden on internal |
| The range of processes is being outsourced by | | | | resources, this also helps the bank to concentrate on |
| mortgage lenders in three areas of the mortgage | | | | their core competencies. |
| processing life cycle, from acquisition to origination to | | | | Though Offshoring and outsourcing seems to be |
| servicing. However, today the most mature market in | | | | strategic cost optimization tool, but the cost benefit |
| terms of outsourcing is mortgage servicing. The loan | | | | depends upon how successfully the outsourcing |
| processing is another area which can fetch in upto | | | | project is executed. We have seen wide gaps |
| 50% of cost savings if offshored to destinations like | | | | between expectation and the deliverables. Recent |
| India. | | | | study states 70% of participants had significant |
| Acquisition is another area with potential, particularly in | | | | negative experiences with outsourcing projects. |
| areas such as analytics and lead generation. | | | | One of the differentiators for future players will be |
| Companies like Equinox which have developed their | | | | strong domain expertise and solution based offerings |
| competencies in Mortgage by running more than 32 | | | | which also help the client in possessing best practices |
| different mortgage processes from their facility out of | | | | into their processes and systems. |