Research & Thoughts

The Real Problem in the Housing Crisis

Who’s going to blink first, banker or borrower?

The mortgage meltdown and the recession may have subsided, but fallout will continue and recovery will be protracted — especially as so-called “strategic defaulters” abandon homes that are significantly “under water.” This could leave investors, lenders and mortgage servicers exposed to significant risk for the next several years. In the Capco report entitled, “The Real Problem in the Housing Crisis: Who’s Going to Blink First, Banker or Borrower?” we analyze the market dynamics that continue to put pressure on financial services organizations and provide detailed insight as to the kinds of risks organizations need to uncover, confront and mitigate to avoid financial losses.

In this report, we provide an overview and analysis of strategic defaulters and discuss how this next wave of less-obvious risks could affect organizations. We also identify and expand on four key strategies that organizations can initiate to mitigate these risks and reduce losses.

• Sharpen analytics
• Get the right data
• Use technology to scale processes
• Get it right the first time

Read this report to gain insight on how to institute more sophisticated techniques in identifying and managing risks — such as those posed by strategic defaulters — and learn how to develop initiatives and processes that will transform your operations, protect you from current and future risks, and ultimately add value to your business.