A special report organized by the Mortgage Bankers Association looks at the future of the mortgage industry in the US. Last fall, the MBA helped organize an independent group to identify future trend in the mortgage industry. According to the "Council to Sahpe Change," the next five to ten years will show sweeping changes in the $12 trillion mortgage industry. The Council specifically expects the industry to continue to consolidate, while fragmenting components into smaller portions that can be "isolated, optomized, automated and outsourced." The fragmentation could lead to disintegrating cash flows and smaller risks for mortgage investments, according to the study. In return, lenders will be expected to place the ability to cross-sell a diversity of financial products to exitsting customers as a top priority. Many financial institutions have already began the process of making this happen, according to the Council report. Borrowers are expected to begin to view a mortgage as a normal financial product. Many will become open to more innovative products. The changing patterns of regional migration and the growing number of immigrants will help to change the industry. According to the Council, the baby boomer phenomenon will affect even the mortgage industry. Many older seniors are expected to reconsider traditional notions of debt management. The scope and intesity of industry regulation is expected to increase, according tot the Council. This could lead to higher costs for consumers. |
