How EOR Solves Challenges of the Mortgage Industry
The mortgage industry is a grueling but important sector for the global economy. Subprime mortgages are one of the biggest examples of how the industry affected the world’s economy. The industry faces many challenges affecting productivity, efficiency, and profitability.
Timely response, higher costs, and workforce management for laborious work are some of the main challenges the industry is constantly struggling with. At the same time, the mortgage industry needs to address concerns such as customer satisfaction, document handling, and cost volatility.
The blog explains the effects of the Subprime crisis and how it added major challenges to the mortgage industry. Also, how forming a remote team in India with an Employer of Records (EOR) service can mitigate the challenges of the mortgage industry.The rapid rise in high-risk mortgage defaults, which started in 2007 and led to the worst recession in decades, was known as the “subprime meltdown.” Due to the mid-2000s housing boom and the then-low interest rates, many lenders were willing to give home loans to borrowers with poor credit. Many borrowers were unable to pay their subprime mortgages after the real estate bubble busted.
To prevent a “systemic crisis,” the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was passed. To act as watchdogs on Wall Street, the Act established organizations like the Consumer Financial Protection Board (CFPB) and the Financial Stability Oversight Council (FSOC). After these new administrative and regulatory changes, the challenges for the mortgage industry have increased and to address them building offshore remote teams is seen as a solution. How this solution works is explained case by case here.
