Debt and destruction: Lower interest income and securitization will lead industry revenue to fall

The Real Estate Loans and Collateralized Debt industry is composed of nondepository institutions that specialize in primary and secondary market lending. Prior to the subprime mortgage crisis, US consumers capitalized on favorable lending terms and interest rates by accumulating credit cards, mortgages and home equity loans, causing aggregate household debt to rise. As the underlying quality of these securities soured and investors experienced massive losses, secondary market demand for commercial and residential mortgage-backed securities collapsed. Higher access to credit and greater disposable income have fueled primary market lending over the past five years, increasing the variety and volume of loans to be securitized and sold in secondary markets...purchase to read more.

Industry Statistics & Market Size
Revenue
$348bn
Annual Growth 13-18
-2.0%
Forecast Growth 18-23
Profit
Employment
462,654
Businesses
56,806
Market Share of Companies

Industry Threats & Opportunities

  • Higher access to credit and greater disposable income have fueled primary market lending over the past five years
  • Nonemploying operators continued to enter the industry to capitalize on nontraditional loans
  • Persistently high interest expenses are expected to constrain profit margins
  • Industry Report - Industry Locations Chapter

    The geographic spread of industry operators highlights the importance of having a high-quality distribution network that enables customers to easily access services offered by industry operators. Real estate loan and credit line providers mainly compete with depository intermediaries, such as commercial and savings banks. These organizations have always had well-developed distribution networks, both in terms of brick and mortar branches and ATMs. Therefore, it is vitally important for enterprises to focus on developing their distribution networks to successfully compete for business in today's challenging environment.The Southeast region has the largest proportion of industry establishments, estimated at 37.3% of the total in 2018. Thi...purchase to read more.

    Additional Insights for the Real Estate Loans & Collateralized Debt Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Real Estate Loans & Collateralized Debt Industry are

  • Superior financial management and debt management
  • Ability to raise revenue from additional sources
  • Membership of joint marketing/distribution operations
  • IBISWorld analysts also discuss how external factors such as Homeownership rate and Rental vacancy rates in the Real Estate Loans & Collateralized Debt industry impact industry performance..

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    What's in this report

    What is the Real Estate Loans & Collateralized Debt Industry?

    The industry comprises nondepository operators that specialize in primary and secondary market lending. Unlike banks and other traditional lenders, industry participants do not rely on deposits to issue loans. Instead, to finance primary market lending to consumers and business, industry operators generate income by securitizing and selling mortgages and other loans on the secondary market. The industry also includes miscellaneous forms of collateralized lending, such as pawn lending.

    Industry Products
  • Secondary market financing
  • Real estate lending
  • Consumer lending
  • Business Lending
  • Industry Activities
  • Secondary market financing and securitization (i.e. MBSs and CDOs)
  • Providing real estate credit
  • Consumer lending and financing
  • Providing other nondepository credit intermediation (i.e. pawnshop operations)
  • International trade financing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Homeownership rate
  • Rental vacancy rates
  • year conventional mortgage rate
  • Aggregate household debt
  • Demand from commercial banking

  • Current Performance
  • Mortgage crisis
  • Recent growth
  • Operational trends
  • Profit volatility
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry structural shift
  • Shifting government regulation
  • Table: Real Estate Loans & Collateralized Debt Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Real Estate Loans & Collateralized Debt Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Construction
  • Commercial Banking
  • Savings Banks & Thrifts
  • Credit Unions

  • Key Selling Industries
  • Commercial Banking
  • Credit Unions
  • Loan Brokers
  • Savings Banks & Thrifts

  • Products & Services
  • Real estate lending
  • Secondary market financing
  • Consumer lending
  • Business Lending
  • Other
  • Chart: Real Estate Loans & Collateralized Debt Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Primary Market
  • Secondary Market
  • Chart: Major Market Segmentation for the Real Estate Loans & Collateralized Debt Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitInterest expenses and provisions for credit lossesWages and depreciationMarketingOther
  • Chart: Cost Structure Benchmarking – Sector vs Real Estate Loans & Collateralized Debt

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Real Estate Loans & Collateralized Debt Industry

  • Industry Globalization
    Federal National Mortgage Association, Federal Home Loan Mortgage Corporation,
  • Table: Federal National Mortgage Association - financial performance
  • Table: Federal Home Loan Mortgage Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Real Estate Loans & Collateralized Debt Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Real Estate Loans & Collateralized Debt Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Homeownership rate (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Adjustable-Rate Mortgages (Arms)
  • A type of mortgage in which the interest rate that is paid on the outstanding balance is variable.
  • Collateralized Debt Obligations
  • An investment-grade security backed by a number of bonds, loans and other assets.
  • Mortgage-Backed Securities
  • An asset-backed security or debt obligation that is secured by a mortgage or collection of mortgages.
  • Payday Loan
  • Short term loans that use the borrower's salary as security.
  • Prime Mortgage
  • The highest quality mortgage loan, given to borrowers that are considered to be the most credit-worthy.
  • Subprime Mortgage
  • A mortgage loan that is offered at a rate above prime to those that do not qualify for a prime rate loan.
  • What Our Customers Say

    Why buy this report?

    The Real Estate Loans & Collateralized Debt industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    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 Real Estate Loans & Collateralized Debt:
    • 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 Real Estate Loans & Collateralized Debt 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 Real Estate Loans & Collateralized Debt, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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