Mortgage loan processing is one of those business domains that have seen it all. At one time the business was on an all - time high, at others it almost hit the bottom. But before we trace the industry patterns and trends as well as the leverage of outsourcing services in the business segment, let us first try and understand what mortgage is all about in the first place.

Mortgage is a system of buying something where the object of purchase itself becomes the collateral against the loan. One of the most common forms of mortgage happens in case of land and homes - property and real estate.

At one time, USA had the mortgage sector booming with sales. However, with the great depression, suddenly the sector faced the floor. This primarily happened, because of a lot of people filing for bankruptcy and their inability to pay their EMIs.

It was after heavy losses being incurred that there were many stringent rules and regulations that came into picture. It was also during that time that the industry started outsourcing its processes to India and other outsourcing locations.

Documentation
One of the first few processes to be outsourced was documentation and risk and fraud management. This was in lieu of the fact that a lot of people also took unnecessary advantage of the depression. So, documentation, scrutiny, risk and fraud detection became highly demanded skills. With more and more experts certifying in research, analytics and loss mitigation, this was one of the major areas that became important for mortgage providers and banks.

Collections
With increasing number of defaulters, it grew increasingly important to initiate streamlined collection processes. However, it was also important to ensure that all rules and regulations regarding the same were followed. So, collection processes came to be off-shored.

With highly cost effective offshore destinations which had the necessary manpower, trained resource pool, relatively cheaper technology and labor, outsourcing collections was certainly a beneficial business decision to make for most mortgage providers.

Collections were further classified into first party and third party collections basis the fixed payment model and the revenue sharing models respectively.

Loan and Foreclosure Processing
As the market slowly stabilized again, it became necessary to bounce back. After all, the business couldn't sustain not lending money to new applicants. Further a need to reduce the loan processing cycle time as well as to increase the efficiency of risk mitigation processes increased by leaps and bounds. So, loan and foreclosure processing became the next in the series to be outsourced.

Underwriting Services
This was further facilitated because of highly trained, qualified and certified F&A professionals and legal specialists gradually entering the market. The older BPO and call centre industry started giving space to the specialized niche - based KPO segment. This also led eventually to the outsourcing of underwriting services as well.

It is an interesting trend to notice how the mortgage industry has slowly but steadily taken an advantage of the BPO leverage, especially with the higher expertise and the cost arbitrage.

Mortgage loan processing services [http://www.gurgaonithub.com/services/financial-services-bpo/mortgage-process-outsourcing] are one of the industries that has created lots of job opportunities in outsourcing destinations like India, Philippines etc, and the trend seems to be continuing, while however becoming more demanding with each passing day.