For those of you that are interested just wanted to give you a quick summary of the Mortgage Banking industry.

Industry Description: The Mortgage Banking industry refers to all the companies and government organizations which make it possible for individuals and companies to borrow money in order to finance the purchase of residential properties (1-4 units) or commercial properties.

There are various branches/areas within the Mortgage Banking industry including:

• Origination
• Processing
• Underwriting
• Funding & Fulfillment
• Servicing
• Secondary & Capital Markets

Outlook for the Business Analyst: While the mortgage industry is in a downturn, as is the entire housing market, the outlook for business analysts with strong mortgage banking knowledge is very good. The mortgage business is a highly regulated and complex business therefore the industry relies heavily on business applications in order to run its business. In addition, the mortgage industry is a very dynamic field which requires constant changes to existing systems stemming form: new and regulations at federal/state/local level, new loan products, changing market conditions, industry consolidation (mergers and acquisitions), etc.

There are many opportunities business analysts and systems analysts to begin and establish careers within the mortgage banking industry working on a variety of systems including but not limited to: Loan Origination Systems, Loan Processing Systems, Loan Services Systems, Secondary & Capital Markets Software, Automated Underwriting Engines, Pricing Engines, Mortgage Guidelines Rules Engines, Compliance Tracking & Reporting Systems, Credit Scoring Systems, Property Valuation Systems, etc.

Potential Employers: There are many potential employers within the mortgage banking space such as:

• Mortgage Originators
• Mortgage Brokers
• Mortgage Insurance Providers
• Mortgage Technology Companies
• Capital & Securitization Companies
• Government Sponsored Enterprises (Fannie Mae, Freddie Mac)
• Government Departments (HUD, FHA, VA)

Mortgage Bankers Association: The main and foremost professional organization in this space is the Mortgage Bankers Association (MBA). The MBA supports a number of resources of interest to the Business Analyst including:

• Technology in Mortgage Banking Conference & Expo
• CampusMBA – the training arm of the MBA offers a numerous courses in mortgage banking
• Books & Resources related to Mortgage Banking
• Mortgage Banking Magazine

Certifications: While there are many certifications offered in the mortgage banking industry, here are some of the certifications which might be useful for a Business Analyst:

• Certified Mortgage Technologist (CMT)
• Certified Mortgage Banker (CMB)
• Accredited Mortgage Professional (AMP)

Industry Technology: The mortgage banking industry has and continues to make significant investments in technology and has developed a number of industry wide standards and practices including:

• Mortgage Industry Standards Maintenance Organization (MISMO)
• Secure Identity Services Accreditation Corporation (SISAC)
• eMortgage - is an electronic mortgages where all the loan documentation is created electronically, executed electronically, transferred electronically and stored electronically. 

The industry priorities have changed, of course!  I see a lot of focus on:

• reducing cost at all steps in the process and not just sales & origination,
• tightening of underwriting guidelines,
• updating and developing new credit risk algorithms,
• increased focus on processing GSE-backed loans as well as FHA & VA,
• stepped up focus on borrower education and disclosures.

Adrian and other banking experts, have any of you had experience with social lending sites like ZOPA?  How do you see your industry managing these new entrants?