Abstract:
Attaining a mortgage can be very painful, costly and lengthy process especially when the policy and infrastructure is not easy to implement it. In Myanmar, the process of the origination for mortgage can be minimum 30 days to up to 90 days based on the bank that the customer chooses to apply. In addition, the documents that required to do all the process will take time to prepare and also there is no single truth of source that the bank can rely and validate it. The origination process involves more than 100 steps and do manual assessment and reconciliation among a variety of parties, including appraiser, borrower, lender, insurer and the list can go on. In Myanmar mortgage industry, there is no way to verify and validate the documents that are related to the apartment or real estate. On the other hand, it is not just origination process, the bank needs to consider the servicing, prediction of the financial loss based on customers’ behavior that include both financial and non-financial information. Therefore, the whole process needs to be seamlessly going through from the very beginning for both customers (buyer and seller) and the bank. In addition, the bank needs to measure and validate every single information that collected from customers and external sources to predict how the customers’ behaviors will look like in upcoming years. The proposed model is a solution to ensure high security while eliminating fraud, lowering operational risks and reducing administrative cost as well as a competitive advantage in the mortgage industry.
