Overview

Borrow and rebuild: Rising home prices will lead to renewed demand for mortgages

The Loan Administration, Check Cashing & Other Services industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Many individuals refinanced their mortgages over this period, adding considerably to the industry’s bottom line
  • The changing structure of this industry has prompted increased demand for new employees
  • Rising consumer sentiment will encourage spending on big-ticket items that require loans
  • Industry Analysis & Industry Trends

    Over the five years to 2017, the Loan Administration, Check Cashing and Other Services industry performed strongly, thanks to favorable macroeconomic conditions and increasing purchasing activity. In particular, the industry is highly dependent on the health of the housing market, and crash left operators in a very precarious position. However, following the meltdown, the industry consolidated significantly. Over the five years to 2022, this industry is expected to continue growth. Origination of new mortgages will be governed by new government regulations such as Ability-to-Repay and Qualified Mortgages rule, which will restrict the growth in new originations, especially those that are subprime.

    Industry Report - Industry Locations Chapter

    Loan services tend to follow the spread of the population. This geographic trend is due to operators' heavy reliance on mortgages, requiring them to be situated near population dense areas with a lot of housing. The geographic distribution of the industry is indicative of the demand for inexpensive administrative labor and proximity to housing boom areas. The larger share of establishments located in the Southeast, Southwest and West indicates these regions as important real estate markets.

    The largest portion of the Loan Administration, Check Cashing and Other Services industry is located in the Southeast, which accounts for 29.5% of the US total. Florida has the greatest proportion of establishments in this region and accounts for 7.3% of the entire industry's establishments. Flo

    Additional Insights for the Loan Administration, Check Cashing & Other Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Loan Administration, Check Cashing & Other Services Industry are

  • Experienced work force
  • Having links with suppliers
  • Ability to effectively manage risk
  • IBISWorld analysts also discuss how external factors such as Demand from real estate loans and collateralized debt and House price index in the Loan Administration, Check Cashing & Other Services industry impact industry performance..

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    Industry Products

    What is the Loan Administration, Check Cashing & Other Services Industry?

    The Loan Administration, Check Cashing and Other Services industry services loans, most notably mortgages. This industry does not originate loans, which includes legally arranging and issuing the loan. Servicing loans includes performing all of the administrative aspects of managing a debt portfolio. Operators also perform money transmission services, which include selling and cashing traveler’s checks, money orders and cashier’s checks, as well as renting safe-deposit boxes.

    Industry Products
    Loan servicing and administration
    Cash handling and management services for businesses
    Industry Activities
    Loan Servicing (primarily mortgages)
    Selling money orders and traveler's checks
    Check cashing servicing
    Money transmission servicing
    Safe deposit box renting

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Demand from real estate loans and collateralized debt
  • House price index
  • Prime rate
  • Consumer Confidence Index
  • Housing starts

  • Current Performance
  • Improving market
  • Increasing employment
  • Industry segments
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue growth
  • Competitive landscape
  • Table: Loan Administration, Check Cashing & Other Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Loan Administration, Check Cashing & Other Services Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Credit Card Issuing
  • Loan Brokers
  • Real Estate Sales & Brokerage
  • Consumers

  • Key Selling Industries
  • Credit Card Issuing
  • Loan Brokers

  • Products & Services
  • Loan servicing and administration
  • Cash handling and management services for businesses
  • Other
  • Chart: Loan Administration, Check Cashing & Other Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Businesses
  • Chart: Major Market Segmentation for the Loan Administration, Check Cashing & Other Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Amortization and other major costs
  • Chart: Cost Structure Benchmarking – Sector vs Loan Administration, Check Cashing & Other Services

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Loan Administration, Check Cashing & Other Services Industry

  • Industry Globalization
    Major Companies
    Wells Fargo & CompanyJPMorgan Chase & Co.
  • Table: Wells Fargo & Company - financial performance
  • Table: JPMorgan Chase & Co. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Loan Administration, Check Cashing & Other Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Loan Administration, Check Cashing & Other Services Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Prime rate (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Collateralized Mortgage Obligation (Cmo)
  • A pool of mortgages that pay investors different cash flows based upon the rules of the collateralized mortgage.
  • Loan Originating
  • The creation of a loan, which consists of outlining the amount of the loan, interest rates, collateral, and payment frequency.
  • Loan Servicing
  • The administration aspects of the loan, which consist of sending and collecting monthly payments, maintaining loan records, and paying insurance and taxes on the loan.
  • Mortgage Backed Security (Mbs)
  • A debt instrument that represents a claim on mortgage cash flows, usually from residential property.
  • Nondepository Credit Intermediary
  • A credit issuing firm that does not service deposit-based accounts.
  • Originated Mortgage Servicing Rights
  • The aggregate value of a servicing portfolio acquired through the company's own production.
  • Purchased Mortgage Servicing Rights
  • The aggregate value of a servicing portfolio obtained from a source outside the purchasing company.
  • Stated Loans
  • Loans that are based on an income value stated by the potential borrower.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Loan Administration, Check Cashing & Other Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Loan Administration, Check Cashing & Other Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Loan Administration, Check Cashing & Other Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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