Opportunities for International Intermediaries
There are many opportunities awaiting the secondary mortgage intermediaries as the new millennium approaches. Globalization of financial markets has triggered the process of harmonizing practices and standards so that participants are protected and risks are manageable. Also, barriers to foreign investments and trade in the financial services are slowly being lowered around the world. Moreover, as organizations such as World Mae (The World Mortgage Association) develops, opportunities are available for international intermediaries to develop around the world. Formally organized in 1996, World Mae is in the business of creating a global secondary mortgage market. Members of that organization believes that the time is right for a global market for secondary mortgages. They see that it works in the United States. Also, because of the changing global financial environment, members of World Mae believes that a high margin of profit can be achieved by exporting the US model of secondary mortgage to the rest of the world.What all this means is that opportunities are availing themselves for international intermediaries to enter the global market of secondary mortgage market. For US intermediaries this means that they are prime to become the foremost international intermediaries in the secondary mortgage. The reason is that US secondary mortgage industry is the most sophisticated and mature of any others in the world. As the rest of the world looks to the United States to develop a similar market in their respective countries, US intermediaries face a tremendous window of opportunity to exploit their core competencies in this area.
Future Mortgages, the second largest subprime lender in the United Kingdom, plans to use Ultraprise.com to sell pools of British home loans to international investors. According to Brian Pitt, the director of sales and marketing at Future Mortgages, "As far as we're aware this is the first time the Internet has been used as an international mortgage exchange. We're a go-ahead sort of company and we see this as an opportunity to test the market." This action by Future Mortgages underscores the opportunities available to the secondary intermediaries to become international intermediaries. David Levine, chief executive officer and founder of Ultraprise.Com, puts it succinctly when he says, "Ultraprise.com has always blazed new trails. Now, our partnership with Future Mortgages creates the first international trading exchange."