Real Estate Loans & Collateralized Debt in the US
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. However, lower interest income and securitization will lead industry revenue to fall, and a flurry of activity in 2018 is not sufficient to reverse the overall decline in industry revenue over the past five years. Still, as greater demand for commercial and residential mortgage-backed securities persists, consumer and business loans are expected to be repackaged and sold in secondary markets over the five years to 2023, boosting revenue.
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.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.