{"id":1144,"date":"2014-05-20T16:09:00","date_gmt":"2014-05-20T16:09:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/winners-circle-mortgage-bpo_052014\/"},"modified":"2014-05-20T16:09:00","modified_gmt":"2014-05-20T16:09:00","slug":"winners-circle-mortgage-bpo_052014","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/winners-circle-mortgage-bpo_052014\/","title":{"rendered":"Accenture, Wipro, TCS and ISGN make the Winner’s Circle for Mortgage Services BPO"},"content":{"rendered":"

The residential mortgage services market is one of the most established and competitive segments of the global BPO industry.<\/strong> Most of the major service providers have been in this market for a considerable time providing services across the process chain of mortgage origination, mortgage servicing and the (sadly more significant these days) area of loan default and foreclosure management.<\/p>\n

It used to be that most service providers were simply providing domestic or offshored labor to augment the capacity needs of the large lenders, but that old operating model is being changed as a result of the consequences of what happened to our global economies post 2008 – and especially in the US. \u00a0Whereas before the crash the entire mortgage industry was going through such a \u201cgold rush\u201d that volume took precedence above all else, now, as a result of increased regulations and reduced volumes that have driven up the cost of completing a loan origination, the focus is elsewhere.<\/p>\n

Today, this is an industry looking closely at the processes and technologies that underlie the business and turning to industry savvy service providers which can provide cost effective, compliant delivery that increasingly includes a significant component of sourced technology solutions as well. This mature market is changing and, as a result, so too is the roster of BPO service providers who are meeting those evolving client needs. So let\u2019s take a closer look at the innovation and execution capabilities of the leading service mortgage services BPO providers:<\/p>\n

\"\"<\/a><\/p>\n

Click to Enlarge<\/p>\n<\/div>\n

HfS has evaluated the innovation and execution capabilities of service providers catering to the origination, servicing and default\/foreclosure management processes of residential mortgage lenders.\u00a0 We asked our EVP of Research, Charles Sutherland<\/a>, who led this blueprint initiative, to share some of his insights arising from this Blueprint Report<\/a>.<\/p>\n

Charles, what are some of the key challenges facing lenders today?<\/em><\/span><\/p>\n

This is a market segment undergoing a profound level of change.\u00a0 First, of all there is a dramatic fall in customer demand for new loans as post-crash engine of refinanced loans is coming to an end.\u00a0\u00a0 Second, is the rise in the overall costs of originating a loan, which are now up several thousand dollars versus where they were before the crash as a result of new regulations and closer scrutiny over the origination processes.\u00a0 Third, has been huge growth in defaults and foreclosures which has brought increased costs, risks and scrutiny to part of the industry leading to a need for new solutions, technology and insights as to how to move forward with a reduced risk profile. Fourth, regulatory changes and large fines for procedural misconduct have led to a fundamental re-examination of processes and in some cases to all out exits from the market as well.\u00a0 Finally, gaps and weaknesses in the legacy loan origination and servicing platforms of major lenders have also been identified which requiring either all out replacement of these technologies or at the very least new tools and enablers to cover these shortfalls in functionality and effectiveness.<\/p>\n

And how are service providers adding value to lenders after the global real estate meltdown of 2008-09?<\/em><\/span><\/p>\n

More than anything else, service providers are adding value by changing their core offering.\u00a0 They have moved away from a model that was often based on providing just labor to cover demand peaks to one, which is consultative, technology driven and analytics based.\u00a0 Service providers are working with their lending and servicing clients to identify and re-think broken processes, to bring technology solutions into even the most entrenched of legacy application platforms and they are building up their rosters of industry experienced staff to provide insights based off the increasingly sophisticated analytics engines and tools which are being included in the service provider solution sets.<\/p>\n

How did they winners shake out?<\/em><\/span><\/p>\n

The\u00a0Winner\u2019s Circle features recent entrants, pure-plays, globally scaled players and visionaries<\/strong><\/p>\n

The leaders in our analysis all have the capability to support the most demanding of mortgage lending institutions but approach the market in very different ways:<\/p>\n