IntroductionMortgage processing outsourcing (MPO) can be a valuable asset to UK lenders as more look to cut costs in an ever more competitive market.
Yet MPO has not yet been taken up by the majority of mainstream lenders.
What are the advantages and disadvantages MPO offers to lenders? To what size will the market grow?ScopeSizes the UK mortgage processing outsourcing market and forecasts its growth to 2008.Provides insight into how the UK MPO market is changing.Gives insight into the benefits and drawbacks of MPO for lenders.Incorporates primary interviews from industry experts and secondary data from a wide range of sources.HighlightsWhile starting from a small base, the UK MPO market has continued to grow.
In 2006, Datamonitor estimates that it will have grown at an average annual rate of 8.4 per cent since 2002, showing its potential.MPO firms need to regain the trust of mainstream lenders.
Indeed, the market was given a heavy blow by Barclays Bank's pull-out with Countrywide as well as the earlier break-up between Alltel and Bradford & Bingley.An increasing number of investment banks and smaller lenders are using the services of MPO firms in the sub-prime mortgage market.
These firms provide a ready-made infrastructure and a variable cost base for lenders.
Recent deals in the sub-prime market include db mortgages with Vertex and Mortgages plc with Home Loan Management (HML).Reasons to PurchaseIn-depth analysis of where the MPO market is headed and the extent to which UK lenders will be involved.Evaluate any opportunities or disadvantages that MPO poses to your business.Understand how the market is changing through Datamonitor's forecast of the UK MPO market to 2008.