Mortgage BPO

September 15, 2012




Most mortgage BPO vendors focus on Mortgage Processing Market. BPO’s Mortgage service offerings are designed to meet the needs of mortgage banking institutions dealing with the challenges of rising interest rates, increasing instances of borrower default, shrinking origination and refinance volumes and competitive pressures.

Mortgage BPOs manage processes across various parts of the mortgage value chain, from origination and fulfilment to secondary marketing. Some vendors provide high-end services such as analytics and investor reporting. The current market for mortgage processing lies between $6 to 7.4 billion while the existing BPOs address close to $ 500 million. Analysts expect this trend to accelerate, as labour costs constitute a significant portion of the overall costs that mortgage banks incur in servicing clients. 

Offshore outsourcing for mortgage BPO is expected to generate cost savings in the range of 30-50 percent, while customers experience cost savings ranging from 20% to 50% over the life of the contract. 

Essentially the functions of a mortgage BPO can be clubbed under four distinct headers; New Business Acquisition, Appraisal Title Checks, Underwriting Disbursement and Servicing Collections Maintenance. 

Major activities under the heads are listed below 

 

New Business Acquisition

Appraisal Title Checks

Underwriting Disbursement

Servicing Collections Maintenance

Inbound/outbound enquiries

Credit checks

Credit evaluation

Overdue collection calls

Loan form data entry

Property valuation

Appraisal amount

Asset Management

Collateral checks

Title checks

Checks for all other supporting

Overdue payments processing

 

Property Insurance checks

Money disbursement

Accounting and reconciliation

 

Legal clearances

Billing