Wipro has acquired mortgage services provider Opus CMC for $75 million as the Indian outsourcing firm digs deeper in its search for BPO contracts in the lucrative US home-loan services market. The housing loan market in the U.S. has long been considered a “bounty” for Indian outsourcing firms, and a report from HfS Research predicted outsourcers to bring in $316 million in mortgage work 2013.
With over 490 employees and five offices, Opus CMC provides risk management solutions to the mortgage industry. Its customers, according to Wipro’s press release, include several of the top global banks, mortgage conduits, mortgage investors, and independent mortgage originators.
“The $75 million includes a deferred earn-out component,” said Wipro without giving more financial details of the deal.
“This acquisition will help us expand in the high end Mortgage BPO segment, and brings differentiated capability with a platform-based risk management offering,” said Wipro’s BPO chief Manoj Punja.
TCS and Wipro are the main Indian BPO providers servicing the US mortgage sector. According to Wall Street Journal, US banks are likely to spend $150 million to outsource foreclosure reviews and loan modifications.
Lincolnshire, Illinois-based Opus CMC, whose due diligence platform gathers business intelligence as well as information on the latest regulatory requirements, offers valuation support, forensic analysis, and advisory services on all classes of mortgage products.
“A critical differentiator for mortgage industry participants going forward is the ability to manage risk and identify profitable growth opportunities in both existing loan portfolios and new originations. Execution capabilities in legacy books, combined with deep knowledge of regulatory frameworks and the ability to efficiently implement them, will be essential for success,” stated Dan Latimore, Senior Vice President of Celent’s Banking Practice.
Wipro expects the transaction to be completed sometime early next year.