Prior to the subprime mortgage crisis, consumers in the United States funded their spending through credit cards, mortgage financing and home equity loans, causing aggregate household debt to rise. This increase benefited industry revenue, as consumers and businesses used debt to finance purchases and fund expenses. However, as the subprime mortgage crisis developed and defaults escalated, demand for mortgages and other debt securities on the secondary market collapsed. Strict regulation, rising interest rates and continued deleveraging will moderate demand in the five years to 2019, and the industry's recovery will likely be slow due to continued recovery from the subprime mortgage crisis for most of the five-year period.
The industry comprises nondepository operators that specialize in lending activity. Unlike banks and other traditional lenders, industry participants do not rely on deposits to issue loans. Instead, nondepository operators provide lending services by selling securities such as bonds, notes and stock or insurance policies to the public. In addition to direct lending, industry operators also generate income by securitizing and selling mortgages and other loans on the secondary market.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.