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Take The Mozilo Pledge: Don't Send Your Back Office Abroad.(Editorial)(Column)

Mortgage Servicing News

| December 01, 2003 | Muolo, Paul | COPYRIGHT 2003 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

A little more than a year ago, in a column, I suggested that mortgage-related firms that send their back offices overseas were committing "economic treason" against the U.S. In particular, I singled out the financial services arm of a conglomerate best known for their light bulbs, jet engines and the hit television sitcom "Friends."

Not only did the conglomerate's mortgage PR staff blow a gasket when the original column appeared, but the letters/e-mails I received were split 60/40 on the issue. Sixty percent (more or less) said: grow up, and get with the program - outsourcing office jobs overseas makes good economic sense and relieves U.S. workers of the more mundane tasks of paper pushing and telemarketing.

The minority agreed with me - that by sending jobs overseas they were adding to the unemployment woes of Americans and reducing, potentially, the number of consumers who might be able to afford a home.

One critic even accused me of being "protectionist" and belonging to the Democratic party.

Over the past year, I've spent a good deal of time thinking about the issue and I can't say my opinion has changed a whole lot, except for maybe on the issue of using overseas software engineers (think China, India and even "communist" Vietnam.) After all, it's hard to feel sorry for software engineers and writers who were making well into the six-figures during the height of the dot-com boom. If you can believe some of the press reports, many laid-off software professionals are now waiting tables.

Not too long ago I asked Countrywide chairman Angelo Mozilo about the issue of sending mortgage call center jobs overseas. His response: "I won't do it."

But first a disclaimer: Countrywide, he said, has few qualms with using overseas software writers, but that's as far as it goes. A five-decade veteran of mortgage banking, Mr. Mozilo is probably in the minority in his beliefs regarding sending jobs overseas, but as far as I'm concerned his rationale is sound.

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Source: HighBeam Research, Take The Mozilo Pledge: Don't Send Your Back Office...

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