Mortgage Market In USA
Mortgage lending is a major category of business In USA.Mortgages are simply the commercial papers and assigned freely to the other holders.In USA the Federal Housing Administration administers the programme which is known as Ginnie Mae,Fannie Mae and Freddie Mac(also known as GSEs or Government sponsured entities) to foster mortgage lending and to encourage home ownership and construction.Thi programme work by buying a large number of Mortgage from banks and issuing mortgage backed bonds to investors known as MBS or Mortgage Backed Securities.
Mortgage Process In USA
In USA the process through which Mortgage are secured by the borrowers are called origination. Here the borrower submits an application and documentation relating to his/her financial history to the underwriter. Presently Many banks are now offering "no-doc" or "low-doc" loans in which the borrower is required to submit only minimal financial informations.Such type of loans carry comparatively higher interest rate and are available only to borrowers having excellent credit. Sometimes a third party is involved called the Mortgage Broker.
Loans are sometimes sold in the open market to larger investors by originating mortgage company. There are some companies, called correspondent lenders who sell all or most of their closed loans to these investors, by accepting some risks for issuing . Some times they offer niche loans by higher prices which the investor does not wish to originate.
Prevailing Interest Rates In The Mortgage Market of USA:-
A brief idea can be given with regards to the interest rates prevailing in the Mortgage market of USA.
Mortgage GDP ratio in USA
The Mortgage GDP ratio in USA for the year 2001 was at 54% in comparison to the 57% in UK, 40% in EU, 7 % in China and 2.5% in India.
The US mortgage banking BPO market in India
The US mortgage banking BPO market in India is expected to grow very fast. It approximately $ one billion over the next five years from the existing $150 million.
The industry presently employs about 7,500 people in this sector.
Keeping in view the research report entitled "BPO Opportunities in the US Residential Mortgage Market" by Trinity Business Process Management and Avendus Advisors, the offshore addressable BPO market size for the US residential mortgage ecosystem is in the range of $6 billion to $7.4 billion.
According to Trinity's VP - sales and marketing, Francesco Paola, the future growth of BPO will be driven by an increased focus on domain-specific vertical processes that provide not only cost savings, but other long-term benefits in the areas of productivity and capacity management for the client.
Mortgage Process In USA
In USA the process through which Mortgage are secured by the borrowers are called origination. Here the borrower submits an application and documentation relating to his/her financial history to the underwriter. Presently Many banks are now offering "no-doc" or "low-doc" loans in which the borrower is required to submit only minimal financial informations.Such type of loans carry comparatively higher interest rate and are available only to borrowers having excellent credit. Sometimes a third party is involved called the Mortgage Broker.
Loans are sometimes sold in the open market to larger investors by originating mortgage company. There are some companies, called correspondent lenders who sell all or most of their closed loans to these investors, by accepting some risks for issuing . Some times they offer niche loans by higher prices which the investor does not wish to originate.
Prevailing Interest Rates In The Mortgage Market of USA:-
A brief idea can be given with regards to the interest rates prevailing in the Mortgage market of USA.
Mortgage GDP ratio in USA
The Mortgage GDP ratio in USA for the year 2001 was at 54% in comparison to the 57% in UK, 40% in EU, 7 % in China and 2.5% in India.
The US mortgage banking BPO market in India
The US mortgage banking BPO market in India is expected to grow very fast. It approximately $ one billion over the next five years from the existing $150 million.
The industry presently employs about 7,500 people in this sector.
Keeping in view the research report entitled "BPO Opportunities in the US Residential Mortgage Market" by Trinity Business Process Management and Avendus Advisors, the offshore addressable BPO market size for the US residential mortgage ecosystem is in the range of $6 billion to $7.4 billion.
According to Trinity's VP - sales and marketing, Francesco Paola, the future growth of BPO will be driven by an increased focus on domain-specific vertical processes that provide not only cost savings, but other long-term benefits in the areas of productivity and capacity management for the client.
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