Servicing Goes to India

U.S. banks are outsourcing the labor involved in servicing mortgages and processing foreclosures to Indian companies such as Tata Consultancy Services, Wipro, and others, in cities such as New Delhi and Mumbai. Indian firms will bring in double the revenue from mortgage work this year as in 2009, around $316 million. The outsourced work is comprised of financial verification, such as reviewing borrower's salary and credit history to determine their suitability for a loan, and foreclosure verification, such as reviewing that collection notices were sent on time, that the lender attempted to reduce the monthly payment, and that the borrower was far enough behind to demand foreclosure. The Indian firms do not judge the cases, but prepare all the facts to be decided on by Western decision-makers.

From "Mortgage Jobs Sent to India by U.S. Banks"
Wall Street Journal (05/27/13) Schectman, Joel