Monday, 15 August 2016

Mortgage Explained & Why USA Stands first among the developed countries:

In general terms, Mortgage refers to a loan borrowed by a client to pay back after a certain period of time. It is a kind of process that legally allows the lender to have temporary rights on borrower’s property for a certain period of time. US mortgage industry is backed by Real estate procedure Act, 1973 whereby the underwriter decides on the process of loan hence based on a decision; they pass or reject the loans whatever it deems fit right according to the process. They generally categorized the loan (mortgage) into two different parts like fixed rate mortgage & adjustable rate mortgage.
The US mortgage industry has always been a troubled child’ as it has led to several crisis in the past which was first in the year 1930’s while in the year one of the biggest crisis was seen in the year 2007-2010 that has led to another economic delusion. The crisis not only disrupted the whole US but also affected the savings of the people. Many of the economist & US treasurist believe that the sub prime mortgage crisis was majorly occurred due to housing bubble of 2000 – 2006.
Generally, several big banks like Goldman sachs, Bekhshire Hatway, etc predicted the signals and warningsof sub prime crisis which might emerge soon after the huge property crash in the year 2000. Hence they offset their investments much sooner. As witnesses due to the sub prime mortgage crisis several banks like Lehman & Brothers had an un-expected huge collspse in the market. Hence in  recent years to hedge against the market risk. The mortgage industry has predefined two set of methods such as:

  •  Asset Backed Securities (ABS): It is a type of financial security against your mortgages asset. It is a similar form of Mortage Backed Security backed by loans, debt, and several other financial instruments.

  • Mortgage Backed Securities (MBS): It is kind of Asset Backed Securities (ABS) whereby a mortgage is not only paid back by single authorized person. MBS includes the two types of  instruments such as: CDO (Collatralised Debt Obligation) and CMOs (Collateralize Monetary Obligation)
In order to decrease the repayment risk, they have subsequently reduced the interest rate and longer the term of repayment in order to avoid the total debt. However in a recent years the US government has strengthen their security level of amortization by considering the several documents such as:
  • Verification of Employment (VOE)
  • Verification of Payment (VOP)
  • Verification (VOD)
Mortgages are considered to be one of the biggest industries in US Market. But still its is very much different from European Union  markets (EU) as the US markets follows a fixed interest rate system while the European markets have variable interest rate system. Hence in a recent years, the US mortage industry has applied a strong ethics and credit score in order to save the industry from credit risk. Thus offsetting the risk can increase the money supply in the economy.  We hereby can say the mortgage industry works on certain parameters altogether.

Mr.D Williams, Founder & CEO of Williams Brand Management. An Avid Reader of Multi-Cultural Books,Finance,Tech & Marketing Gig. You can follow him via Twitter or can connect him on Linkedin

Thursday, 19 May 2016

Ambitious GE Healthcare has great plans for India market

GE investing another $50 Billion in Indian Healthcare. Healthcare IT; software and R & D
will be the new focus areas. GE sees huge potential in India, as they have been growing at
CAGR of 30% in India by 2011. They plan to make India its manufacturing and R & D hub due
to commercial viability and huge consumer market.

GE dedicated the year 2012 as "At Work, for a Healtheir India". GE India has developed
products which lead to new innovation levels in healthcare. GE healthcare launched 6
products in 2013 which are made in India. These products have delivered results in India as
well as for 100 other countries across the world.

India is the first location after USA for GE to have large development centers. They have
their base in Bangalore, Hyderabad, Chennai and a recent addition is Pune. By employing
over 15000 employees. GE healthcare is focused on employing women manpower, and the
Pune plant will see 10% rise in female staff only.

GE had its presence in India since 1902, they always had a zeal to revolutionize the
healthcare industry, which is reflected in their actions as well. They had been quick in taking
decisions for R&D, expansion, business process re-engineeirng, continuous innovations. They
had been performing M & A (in-house and internationally), depending upon the situation
and industry demands.

They are leading their way in all segments of Healthcare weather: Life sciences, Equipment's,
Software and IT solutions, Bio pharmaceuticals, Patient monitoring and Molecular Imaging.
They are experienced and a trusted name for their healthcare products.Refurbishment, again another important segment, which GE has with them. As they are
aware of the huge investment capital involved purchase of Medical Equipment's their
Refurbishment segment called & ;Gold Seal & ; is attracting consumers from tire 2-3 cities of
India. These equipment's are processed in GE certified labs and undergo proper calibration
before bringing back to the market.

GE has started an initiative " In India, for India" in 2010 where they have ventilators, ECG,
Moving Cathlab, Sonograpers, USG Scanners and other infant care products which are
efficient and available at very low cost. This initiative of GE will change the shape of rural
India where GE is aiming to meet the rural requirement which is cost effective, minimum
power usage and portability.Their investment in R & D - India, is again a planned decision, as the manufacturing costsare lower and the consumer base is high. GE aims to have 100 new innovations in
healthcare only. Indian engineers and doctors have sound know-how, with the technology
and investment provided by GE. The results will be promising.

GE is fully aware of its strategic moves, therefore they have explored the massive consumer
base in untapped, potential markets outside the US. This has shown positive results as the
percentage increase is higher in the developing countries like: China - 23%, Latin America -
19%, ASEAN Region - 15% and India - 10% for years 2009 - 2013, in comparison to the US
and developed countries. Under this only they have made an exit from their low revenue
cycle products as well.

GE understands the India market well, therefore they have launched CT as customized
product for the Indian market, which is Super CT, this product costs one-tenth of its
premium CT Revolution segment. The actual cost of this product is about $2 Million a unit.
GE's Indian commitments are praiseworthy, they are perfectly lined up with their ambitious
plans for growth and innovation. The figures have multiplied many folds. It is undoublty a
win-win situation for GE partnering with India. GE is not excelling in Healthcare they are
leading their way in other industry segments as well.

-  By Nidhi Bhel ( Williams Brand Managemenr(