The Hindu Business Line : GreenPoint closure: Minimal impact on domestic vendors

Bangalore Aug. 22 The closure of Capital One’s wholesale mortgage banking unit, GreenPoint Mortgage, has hit the Indian vendors such as InfosysBPO and iGATE Global.

Capital One, citing “an unprecedented set of market circumstances” said on Monday that it was closing down the struggling GreenPoint.

InfosysBPO and iGATE Global, which have been servicing GreenPoint Mortgage for the past several years, maintained that the impact of shut down would be minimal.

Revenues from GreenPoint for both companies ran into a couple of million dollars.

“There will be some impact on us, but it will be minimal,” said Mr Amitabh Chaudhry, CEO and Managing Director, InfosysBPO.

The underwriting work that InfosysBPO did for GreenPoint is being stopped. But InfosysBPO will continue to work with GreenPoint as the loan-servicing business is being retained, he said.

For iGATE, the ramp down in GreenPoint mortgage has already reflected in the revenues over the past two quarters.

Revenues from mortgage services have declined to around six per cent of total revenues from about 10 per cent two quarters ago.

“The ramp down has already happened and currently our revenues from GreenPoint are very negligible,” said the Chief Financial Officer, Mr N. Ramachandran said.

More Stories on : Outsourcing | Mortgage | Infosys Technologies Ltd | Housing Finance

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page