Today's blog comes from Peter Allen,
Partner and Managing Director, TPI.
An
update is in order on the world of mortgage processing outsourcing (MPO). A few
weeks back I noted that most of the mortgage industry’s top lenders developed
their loan origination technology in-house and that there seemed to be some
emerging interest in mortgage processing as a BPO.
Nowadays,
the attitude is quite different. Most companies outsourcing mortgage processing
are landing on the opinion that the marketplace is not mature enough to engage
in MPO. That’s because full turnkey MPO capability is just not evident today.
There
are a multitude of service providers who claim capability, but what we’ve found
is a high concentration on systems integration and applications-oriented
services. Sub-functions do exist, but in terms of relevant operations, from
origination, through servicing, payment services, and secondary market
functions, the capabilities of the outsourcing industry are grossly incomplete.
