Mortgage Firms Are Off-Shoring Leaders
U.S. mortgage lenders are off-shoring staff resources to reduce labor costs in greater numbers than other financial services firms, according to a TowerGroup study.
Over the last decade, the outsourcing of mortgage-related jobs overseas "has taken a permanent and growing position in the U.S. mortgage industry's overall strategy," the company said.
The TowerGroup said that U.S. mortgage lenders spent $462 million on the off-shoring of loan origination and servicing processes last year. The TowerGroup predicts that spending on overseas outsourcing will increase at a compound annual growth rate of 21% through 2010.
The company estimates that the U.S. mortgage industry's direct cost base was $44 billion in 2005, with labor expenses accounting for half of that total. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com