How setting up a virtual offshore center can help transform your mortgage business?

August 12, 2022
Shalendra Malhotra

Virtual Captive Center

Mortgage Loan Application Volumes at 22 Years Low 

The US mortgage industry is currently witnessing its lowest demand levels since 2000, driven by the US Fed’s actions to increase interest rates to combat inflation.

According to the Mortgage Bankers Association, it’s seasonally adjusted market composite index fell from 645.4 a year ago to 288.4, a drop of almost 55% in a year.

The refinance market, which is highly rate sensitive, saw a much bigger impact with demand dropping by 80% compared to the same period last year.


With inflation still continuing to be a source of concern and market expectations of the Fed not changing its bearish approach to interest rates, the pressure on margins will continue to be a key challenge for the industry.


Market dynamics leads to bloodbath in the Mortgage Job Market

As both demand and margins are currently under considerable pressure, mortgage companies are looking to rationalize cost to ensure survival.  The recent news of Sprout Mortgage and First Guarantee Business shutting down their businesses is a tip of the iceberg, with recent estimates indicating that more than 4000 people have lost their jobs.  This trend started with the infamous Zoom based layoff by, but the last few months have seen behemoths like J.P.Morgan, Wells Fargo, Dr. Cooper, Tomo etc laying off a large percentage of their workforce. 


The role that a Virtual Captive Centre can play during these tumultuous times 

A virtual captive center is a plug and play solution, that helps a company have a dedicated team up and running in a very short period of time.  This solution reduces the administrative and compliance work dramatically.  As against an outsourcing model, a virtual captive model gives the customer full control on the team’s work/ performance. 

We have seen a number of mortgage and real estate companies set up virtual captive centers in India, allowing them to reduce their costs by over 70% in a short period of time.  In addition to helping drive significant cost savings, customer’s who have built high performing teams have also seen an increase in productivity.  This allows a customer to still have continuity of business while dramatically reducing costs and also not having to re-train the team once demand starts coming back. 


How can Optimar help you to leverage the talent pool in India? 

Optimar Consulting is a leader in assisting international companies in establishing a world-class virtual team in India. Our ‘customizable’ and ‘pay by month’ subscription model has assisted over 45 companies in establishing a fully operational global team in India.  

We are experts in managing all aspects of virtual employee management, from recruitment to physical infrastructure support and HR operations, with over 30 years of experience and a client base spanning continents and time zones. Last year, Optimar helped its clients hire over 1,000 candidates, resulting in significant cost savings. 

Now its your time to get started!

Talk to our Business Consultants with decades of experience to guide you on how to setup a Virtual Captive Center in India.

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