“Excellent course material with an appropriate delivery system.”

Amir Alam-Retail Approval Executive, Emirates Islamic Bank, UAE

Chartered Mortgage Analyst

16 - 20 Mar 2008  •  JW Marriott Hotel  •  Dubai


Structuring And Marketing Profitable Home Finance Products

Course Agenda

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 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 Outline:
Timings and dates of individual sessions may vary.

Day One – Sunday, 16 March 2008

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, 17 March 2008

Basics Of The Mortgage Product
• Building blocks for creating a mortgage product
• Types of mortgage product structures
• Different repayment schemes

Mortgage Product Development In-Depth
• Terms and conditions
• Pricing
• Repayment options


Day Three – Tuesday, 18 March 2008

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, 19 March 2008

Overview Of Operational Aspects Of Marketing A Mortgage
• Lending acceptance operations
• Lending maintenance operations
• Funding issues
• Portfolio acquisition

Day Five – Thursday, 20 March 2008

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:
• Business Strategy
  o What targets do you seek to achieve?
• Target customer segments
  o What are the characteristics of the segment you are targeting?
  o What is the bank’s position in the market? Leader or follower?
  o What are the key quantitative and qualitative drivers of the market?
• Economic and competitive environment
  o The economic conditions and relevant competitors and their impact in developing
      the product
• Terms and conditions of the loans
  o Which product features should be included in the product?
  o Define the various options relating to pricing, repayment terms, loan size etc
• Profitability
  o Develop a basic model to determine product profitability
• Develop a marketing and promotions plan
  o How the mortgage should be positioned and promoted
  o Which channels are the most appropriate?