Seeking Scalability and Capability in Mortgage Originations

In 2007, the mortgage market began to spiral out of control. Delinquency rates more than doubled, and as a result, primary and secondary market activity came to a halt. Since then, the industry has undergone overarching changes, and executives are still grappling with the implications. 

Confronted with new regulations tied directly and indirectly to Dodd-Frank, mortgage companies are attempting to implement changes in process, technology, staffing and others. Meanwhile, volumes continue to fluctuate as rates and government incentives drive demand. Margins are shrinking amid rising costs, which financial institutions have to pass on to consumers. 

The disruption, confusion and ongoing risk are forcing executives to seek assistance in managing existing challenges and those on the horizon. For strong outsourcing companies, this market landscape translates into an opportunity to provide additional value to clients. For buyers, these companies can offer tangible solutions in what will remain a tough market for the near future. 

In this RapidInsight, HfS Research examines: 

1. The three principal industry developments that financial institutions should consider when deciding how to manage their mortgage origination business;
2. The origination processes that lend themselves to outsourcing;
3. Criteria for evaluating potential partners; and
4. Profiles of key specialist and global service providers.