Programme Timings
Registration will be at 08:00 on Day One. The programme will commence at 08:30 and conclude at 14:30 followed by lunch. There will be two refreshment breaks at appropriate intervals.
Programme Summary
This programme will teach you how to effectively develop and market retail mortgage products. You will cover the basic mortgage structures available to a product manager and then examine the ways in which they can be designed to target whatever segment you wish. The programme covers all the key aspects of development including profitability, positioning, promotions as well as covering other key aspects you need to know, including credit and collections.
Programme Assessment
This course provides an internationally recognised professional qualification, certified by the Board of Standards of the American Academy of Financial Management (AAFM). Originally founded in America, the AAFM is now established over 150 countries and as such, this course brings with it the experience of finance professionals around the world. In order to pass this course and use the official designation you will have to demonstrate, through a formal assessment process, that you understand and can apply the course material in a professional setting. Assessments are defined by the AAFM Board of Standards and ensure that all candidates are of the same high-quality, international standard in their chosen designation field.
Candidates who fail this assessment may be allowed to re-sit, where assessment is via an examination, at the discretion of the course leader. Neither IIR or AAFM will be liable in the event that a delegate is unable to pass the required assessment.
| Day One – Sunday, 31 May 2009 |
Overview Of Mortgage Banking
• Mortgage banking overview
• Mortgage market overview
• Mortgage loan products overview
Why Do Banks Sell Mortgage Loans?
• Covering the trade off between risk and return
• Comparing home lending against other forms of consumer credit
Overview Of The Consumer Credit Cycle
• The foundation framework for retail lending activities
• Discussing the principle that mortgage products cannot be developed in isolation without considering the risk/return trade-off
| Day Two – Monday, 1 June 2009 |
Mortgage Products – The Building Blocks
• Different loan structures
• Standard amortising versus revolving mortgages
• Fixed rate versus variable
• Repayment options
Understanding Mortgage Products
• Review product features and benefits of mortgage products
• Develop a tool box of mortgage features on which to build powerful propositions
• Develop bespoke mortgage products
Mortgage Product Development In-Depth
• Terms and conditions
• Pricing
• Repayment options
| Day Three – Tuesday, 2 June 2009 |
Mortgage Value Propositions
• How different product structures appeal to different segments
• Understanding customer behaviour
• How to segment the customer base
Profitability
• Understanding the cost and income drivers of a mortgage portfolio
• Which metrics should be used to manage a portfolio?
Overview Of Credit Aspects Of The Mortgage Product
• Credit assessment policies
• Understanding risk dynamics of the various mortgage types
• Managing the credit risk
• Understanding the collections function
| Day Four – Wednesday, 3 June 2009 |
Managing The Portfolio
• Metrics used to manage the risk of the portfolio
• Early warning signs
• Options to mitigate risk
Overview Of Operational Aspects Of Marketing A Mortgage
• Lending acceptance operations
• Lending maintenance operations
• Funding issues
• Portfolio acquisition
| Day Five – Thursday, 4 June 2009 |
Current Issues In Mortgage Lending
• What is sub prime and its impact on mortgage lending?
• Portfolio acquisition
Development Of A Mortgage Product
A key part of the course will be to use the theory, examples, case-studies of best practice and to synthesise this information into a product proposal. The proposal developed by the teams will cover the following:
• Structured products
• Business strategy
- What targets do you seek to achieve?
• Target customer segments
- What are the characteristics of the segment you are targeting?
- What is the bank’s position in the market? Leader or follower?
- What are the key quantitative and qualitative drivers of the market?
• Economic and competitive environment
- The economic conditions and relevant competitors and their impact in developing the product
• Terms and conditions of the loans
- Which product features should be included in the product?
- Define the various options relating to pricing, repayment terms, loan size etc
• Profitability
- Develop a basic model to determine product profitability
• Develop a marketing and promotions plan
- How the mortgage should be positioned and promoted
- Which channels are the most appropriate?