Domestic vs Offshore Outsourcing for the Mortgage Industry
Filed under: Domestic Outsourcing, Mortgage Industry Trends — admin @ 5:28 pm
Today’s MBA Newslink contained the following…
Offshoring, Outsourcing Poised for Growth
NEW ORLEANS–The outsourcing and offshoring sectors, in both captive and vendor models, appear ready for even more business as it matures beyond its primary existence in India. Despite inherent operational challenges, it may be the best time for the mortgage industry to consider its adoption.
I agree with the outsourcing. Numerous stories have reported lately that lenders aren’t able to maintain back office fulfillment and operations in house due to reduced originations and the continued need to cut operating costs. However, offshore outsourcing in an industry that is inherently complex, indigenous to the US economy and is currently undergoing nearly unprecedented regulatory investigation and changes is not the answer. Even if the industry weren’t in its current state of flux and licking the wounds that resulted from the recent bust of inflated appraisals, adjustable rates and reduced lending quality, any outsourcing of sensitive personal and financial data offshore just isn’t smart, even in a stable industry.
I have outlined my argument in support of domestic outsourcing - outsourcing these sensitive and crucial back office operations to experienced, onshore mortgage industry professionals - several times, including here and on my business web site here.
I believe, if the mortgage industry new what was good for it and was really as concerned with quality in lending as they should be, the headlines should start reading “Onshoring, Outsourcing Poised for Growth.”
Stumble it!