Indian Business Process Firm Gets Footprint in U.S.
Indecomm Global Services has acquired Mortgage Dynamics Inc. here in a continued effort to enter the U.S. mortgage market.
MDI is a consulting firm that has serviced the U.S. mortgage market for 18 years. The company was acquired for an undisclosed combination of cash and stock. Indecomm will adopt the Mortgage Dynamics brand name for its U.S. mortgage outsourcing operations. Also, MDI will continue under the leadership of its founders Mary Bruce Batte and Dan Measell.
Indecomm is an international business process services firm with headquarters in Bangalore, India, and operating centers in America. Indecomm provides consulting on all aspects of mortgage banking and performs such outsourcing services as investor accounting, FAS 140 tasks, post-closing, quality control, loan sales preparations, and audits of compliance, underwriting and adjustable-rate mortgages.
In fact, this isn't the first move that the company has made to gain a larger footprint in the U.S. market. In April of this year, LandAmerica Financial Group Inc., a provider of real estate transaction services, and Indecomm formed Lydian Solutions and Services, a joint venture between the two companies. The new firm provides an Intelligent Document Hub solution serving the mortgage, remittance processing, financial services and health care industries. The new company will be located in Louisville, Ky.
The IDH will integrate the ability to handle complex business documents, convert them into a digital format and manage them using a proprietary onshore-offshore processing model. The result is a business process solution for clients seeking to outsource document-based processes and lower costs by converting fixed costs into a variable cost structure.
In terms of how the relationship between MDI and Indecomm began, Ms. Batte told NMN, "John Torell, who is the chairman of the board at Indecomm, became one of our clients in 1990. We did some major projects for him when he was at Fortune Bank and have stayed in touch. Through his involvement with the World Bank as a volunteer he met Indecomm.
"It's clear to me that the major financial institutions are pursuing operations offshore. We bring the strong mortgage banking skills that can mean the difference between a successful project and one that fails. Since our approach is to provide as many products as possible it makes good business sense to help our clients on that front. We want to bring those capabilities to the midtier so they can compete with the larger institutions."
"This is a very strategic acquisition for us and will set the stage for dramatic growth going forward," added Naresh Ponnapa, president and CEO of Indecomm, in a prepared statement. "The value proposition is profound and is built upon three principles: commanding domain knowledge, world-class use of technology applications to enhance customer performance and global delivery of operating solutions."
"The senior people at Indecomm have tremendous backgrounds," noted Ms. Batte. "Most of their executives have spent time here and understand how business is done. At present they have onshore operations including imaging and such. They've been making inroads into the U.S. mortgage market for some time.
"What we bring to the table is that we have detailed knowledge of the industry to further train them and create a model where the more complex mortgage work is done here," she said. "It's unusual for a global company to have the kind of staff that they have in the U.S."
As a result of the acquisition, MDI expects to add both more products and people. "We'll be adding more products and more people," said Ms. Batte. "I went to our local offices talking to everybody. This gives us an opportunity to offer more services. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com