:Module One
Overview Of Mortgage Banking
a) Mortgage banking overview
b) Mortgage market overview
c) Mortgage loan products overview
?Why Do Banks Sell Mortgage Loans
a) Covering the tradeoff between risk and return
b) Comparing home lending against other forms of consumer credit
Overview Of The Consumer Credit Cycle
a) The foundation framework for retail lending activities
b) Discussing the principle that mortgage products cannot be developed in isolation without considering the risk/return trade-off
:Module Two
Mortgage Products – The Building Blocks
a) Different loan structures
b) Standard amortizing versus revolving mortgages
c) Fixed rate versus variable
d) Repayment options
Understanding Mortgage Products
a) Review product features and benefits of mortgage products
b) Develop a tool box of mortgage features on which to build powerful propositions
c) Develop bespoke mortgage products
Mortgage Product Development In-Depth
a) Terms and conditions
b) Pricing
c) Repayment options
:Module Three
Mortgage Value Propositions
a) How different product structures appeal to different segments
b) Understanding customer behavior
c) How to segment the customer base
Profitability
a) Understanding the cost and income drivers of a mortgage portfolio
?b) Which metrics should be used to manage a portfolio
Overview Of Credit Aspects Of The Mortgage Product
a) Credit assessment policies
b) Understanding risk dynamics of the various mortgage types
c) Managing the credit risk
d) Understanding the collections function
:Group Exercise
:Module Four
Managing The Portfolio
a) Metrics used to manage the risk of the portfolio
b) Early warning signs
c) Options to mitigate risk
Overview Of Operational Aspects Of Marketing A Mortgage
a) Lending acceptance operations
b) Lending maintenance operations
c) Funding issues
d) Portfolio acquisition
:Module Five
Current Issues In Mortgage Lending
?a) What is subprime and its impact on mortgage lending
b) Portfolio acquisition
Development Of A Mortgage Product
a) Structured products
b) Business strategy
?c) What targets do you seek to achieve
d) Target customer segments
?e) What are the characteristics of the segment you are targeting
?f) What is the bank’s position in the market? Leader or follower
?g)What are the key quantitative and qualitative drivers of the market
h) Economic and competitive environment
i) The economic conditions and relevant competitors and their impact in developing the product
j) Terms and conditions of the loans
?k) Which product features should be included in the product
l) Define the various options relating to pricing, repayment terms, loan size etc
m) Profitability
n) Develop a basic model to determine product profitability
o) Develop a marketing and promotions plan
p) How the mortgage should be positioned and promoted
?q) Which channels are the most appropriate
:Group Exercise
Final Examination
The final examination will be in a Multiple-Choice format