Overview of the global housing mortgage market
The global residential loan value segment will grow at a moderate CAGR of nearly 4% by 2020. The global housing real estate market is gaining from an improving business environment, low inflation rates, and surging consumer confidence. Enhanced risk management, underwriting standards, and supervision will drive the prospects for growth in this market until the end of the forecast period. The implementation of enhanced internal risk management frameworks and underwriting standards of all housing mortgage loan originators and brokers will help in the enforcement of the prudential supervision.
A good underwriting standard is consistent across mortgage lenders and brokers and has become a hallmark of the housing mortgage origination business. Such an underwriting takes into account the value of the property, the borrower’s creditworthiness, verification of the submitted information, and sound and independent appraisals.
Housing mortgage market facts based on drivers
In this market, factors such as the rising demand for building manufacturers will aid in the growth of this market during the forecast period. Due to intense material storage and increasing scarcity of skilled labor in the housing mortgage market, the policymakers have been compelled to design measures to ensure the easy availability of cash for builders. Additionally, governments have also started to devise mechanisms like LTV and DTI to encourage the construction of houses in different geographies. In this market, the real estate and housing mortgage managers, the investment community, and developers will need to collaborate with governments to manage and mitigate risks in schemes that might otherwise appear uneconomic.
Housing mortgage market value based on geography
- Americas
- APAC
- EMEA
During 2015, the APAC region dominated the housing mortgage market by accounting for a share of nearly 44%. The introduction of a massive monetary stimulus program, which is aimed at stabilizing inflation and attracting large flows of capital, will aid in the growth of this market in APAC. The countries in this region have also started implementing strategic policies like minimum cash down payments, restricted loan tenures, and mortgage servicing ratio for electronic clearing services to bolster the prospects for market growth until 2020.
Housing mortgage market statistics: Competitive landscape and key vendors
In the global housing mortgage market, the competitive dynamics have changed drastically over the last ten years. Consequently, to remain competitive in this market, the mortgage originators appointed mobile lenders to reduce branch network costs. In addition, the mortgage lenders in this market competed for new businesses through product innovations like home-equity loans, which provide a line of credit against residential property.
Top vendors in this market
- Bank of China
- China Construction Bank
- HSBC
- Wells Fargo
Key questions answered in the report include
- What will the housing mortgage market size and the growth rate be in 2020?
- What are the key factors driving the global housing mortgage market?
- What are the key market trends impacting the growth of the global housing mortgage market?
- What are the challenges to market growth?
- Who are the key vendors in the global housing mortgage market?
- What are the market opportunities and threats faced by the vendors in the global housing mortgage market?
- Trending factors influencing the market shares of the Americas, APAC, and EMEA.
- What are the key outcomes of the five forces analysis of the global housing mortgage market?
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