Job losses, recessionary fears to lead to rise in mortgage delinquencies in the US

Chennai |Wednesday, 2023 1:45:09 AM IST
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With job losses and a predicted recession, home mortgage delinquencies are expected to increase in the US, a senior official of mortgage servicing fintech software-as-a-service (SaaS) Sagent said on Monday.

The US-based Sagent, backed by Warburg Pincus, has opened its first non-US centre here with a headcount of about 120.

"The total mortgage delinquency now is under four per cent. In 2020, the delinquency was eight per cent. The mortgage market is stable. In the US market, we predict delinquency rate is to go up," Chief Operating Officer Marianne Sullivan told media here.

According to her, there are regulations concerning the mortgages in the US and Sagent clients have to use the former's software in managing the same.

However, she said the purpose of Sagent opening its first office outside of the US here is not due to recessionary fears in the home country.

According to Sagent's Chief Technology Officer Uday Devalla, the main reason for setting up the centre here is owing to the 2022 partnership deal with Mr Cooper, the third largest mortgage servicer in the US.

Devalla said the mortgage industry in the US is about $13 billion industry and is complex.

According to Devalla, dual mortgage and fintech experience is required to innovate in a sector as complex as mortgage servicing and the company has such a talent.

In the US, the company has a headcount of about 520 and in India, about 120.

--IANS vj/vd

( 257 Words)

2023-05-09-19:40:04 (IANS)