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Wipro is attempting to bounce back from recent disappointments (see here and work back), paying £75m to acquire Opus CMC (Opus Capital Markets Consultants LLC), a US mortgage risk management specialist that will complement its mortgage BPO business.
Based in Lincolnshire, Illinois, Opus CMC employs some 490 people including 315 loan underwriters across five sites in the US. It provides a range of risk management services into the US mortgage market, such as operational and loan level due diligence, valuation support, forensic analysis, and advisory services. Its customers include top global banks, mortgage conduits, mortgage investors, and independent mortgage originators.
Opus CMC will become part of Wipro’s BPO division, which had revenue of $539m in FY13 (up 4.8% on FY12). It’s not clear what revenue the business will contribute however. Wipro already has a presence in the US mortgage market via its Wipro Gallagher Solutions (WGS) division acquired back in 2008 (see here). WGS employs c150 people, and provides a loan origination platform called NetOxygen, and offers supporting loan fulfilment services.
Wipro’s ambition is to create an end-to-end offering into the US mortgage space, and eventually expand into the UK, Europe and Australia. It appears to be on the right track. Opus CMC will provide the front end expertise in mortgage due diligence, and an entrée into new mortgage clients. WGS will offer a technology platform to help track mortgage applications through to completion. Wipro will then have an opportunity to upsell its broader back and front office BPS.
Of particular value will be Opus CMC’s analytics on 1m+ loans reviews over the past ten years, and its knowledge on regulatory requirements. This should help Wipro offer low risk and compliant mortgage BPO - critical requirements from early 2014 when new regulations come into force demanding mortgage lenders verify that borrowers can repay their loans.
