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U.S.MortgageMarketTrendsandIndicatorsfor2016-17
Confiden'al:Pleasedonotshare
US Fed’s rate hike and stronger economy is likely to make a posi7ve impact to the U.S. overall mortgage market in 2016 - 17
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2012 2013 2014 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2
Allholders FamilyResidence Mul>-FamilyResidence Non-Farm Farm
$T MortgageDebtOutstandingfortheU.S.(2012–2016)
§ Overallgrowthinmortgagedebthasbeenatmoderate1%CAGR(2012to1H2016)
§ ThefastestgrowingsegmenthasbeenMulK-FamilyResidence(at5%CAGR)followedbyFarms(at4%CAGR)
§ ExpectedinterestratehikefromtheFederalReserve(withmoreratehikeslikelytofollowin2017),strongerU.S.grossdomesKcproductgrowthandamoderatelystrongerjobsmarketshouldbolstertheeconomyandraisebothmortgageratesandhomeprices
§ Majorchallengehasbeenaccesstocredit,specificallymortgageinstruments,hasnotbeeneasyformanywould-behomebuyersbutthatissettochange
Source:FederalReserve
Technology and data-driven ini7a7ves will mi7gate few key challenges in the U.S. mortgage industry going forward
Hyper-compe>>oninthemarketasservicingmarketconsistsofbank
servicers,non-bankorindependentmortgageservicers,andsub-servicers
ac>ngasthird-partyvendorstoservicersofrecord
Increasingcostofservices:Between2008and2013,costofservicinga
performingloanhasincreasedby264%
Increasedregulatoryandcompliancerequirements
Lossmi>ga>onconsidera>onspostnon-availabilityofHomeAffordableModifica>onProgramandHomeAffordableRefinanceProgram
LeverageadvanceanalyKcstechniquesforidenKfythetargetcustomersforcross/upsell;riskidenKficaKonand
miKgaKon;beZermanagementofNPL(non-performingloans)
ThroughconfigurableworkflowandintegraKonwithsoluKonshandlingofworktasks,servicerscansaveKme,boostusersaKsfacKonandensureamorepredictableoutcomeacrossthe
loanservicinglifecycle
EvoluKonofdatadriveniniKaKvesarewaystomanageKPI-drivenreporKngandon-
demandaudits
ThiscanbemiKgatedbyGSELoansbuttheyshouldestablishtheirownwell-documentedmiKgaKonplanstousein
applicablecircumstances.
Solu>o
n
3Source:Forbes,MortgageORB,Karvy
Key
Challenge
Confiden'al:Pleasedonotshare
ThanksContactus:KarvyAnalyKcswww.karvyanalyKcs.com