Indian MPOs well placed to serve US lenders

CHENNAI:
The US' sub-prime mortgage crisis, loaning to borrowers with mediocre recognition rating
and the end point defaults, is expected to increase offshoring of loan
processing activities by American loaning institutions, experience mortgage process
outsourcing (MPO) industry
officials. Hit by the crisis,
the United States loaning establishments will henceforth expression at qualitative recognition appraisal
methods at a less cost. "This
would ensue in increased offshoring of the backend work, loan processing,
property statute title confirmation and other work. Republic Of India is well placed to take
advantage of the opportunity," Prashant Kothari, chief executive officer and laminitis of String Real
Estate Information Services, told the mass media here
Wednesday. The American home
mortgage industry, the biggest in the world, is deserving $8 trillion and $5
trillion for commercial properties. That in bend affects back business office and
transaction processing work worth $100 billion annually. Out of this, $10 billion worth
of concern could be outsourced whereas the existent concern outsourced is just
$200 million, Kothari
said. Despite the recent crisis
projections for mortgage loan issue in 2007 through 2009 are well in excess
of $2 trillion, Kothari
added. To take advantage of
this scenario, String Real Number Estate have chalked out enlargement plans. The company
will increase the head count in its Indian subordinate to 1,100 from the current
450. It is also looking at Coimbatore and Madurai for setting up processing
centres. According to Kothari,
MPO for United States loaners is a specialised activity and cannot be done by other
standalone concern procedure outsourcing (BPO) units. The MPOs have got to process
around 60 documents, he said, adding that the figure nearly duplicates in lawsuit of
complicated files. All these
years the loaning establishments were looking at the cost and not the quality
factor. But this state of affairs will change, he
said. The MPOs are paid on file
basis. In regard of normal data data files the charge per unit is around $30 and for complicated
files it travels as high as $120.