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May - 2013 - issue > siTech10 2013
Visionet Systems Simplifying THE MORTGAGE MAZE
Sandeep Sen
Sunday, May 5, 2013
In September 2008 when the global economy was hit by the Great Recession, major banks in the U.S. suffered huge losses due to large mortgage loans undertaken by them which were found to be erroneous by government entities. The banks were unable to defend themselves and had to buy all of the mortgages back. To avoid catastrophes like these, Visionet Systems developed an automated ERP system which automatically detects errors and prompts its clients to fix them, preventing fallout during an inspection.

Two of the top four banks in the U.S. were facing the brunt of mortgages over the years and the GSE's (Government-Sponsored Enterprise) Fannie Mae and Freddie Mac - who are responsible for home loans - reviewed the mortgages and found numerous errors after which they instructed the banks to buy the mortgages back. Consequently these banks incurred huge losses owing to errors, so much so, that each mortgage that they bought back cost them close to 50 to 200 thousand dollars. Today, Visionet has a five year old end to end repurchase management system which assists the banks in managing the repurchase demands in an efficient way so that they are able to defend themselves in such times of crisis.

Connecting the Loose Ends
Visionet Systems provides mortgage banking, etail services, IT and BPO services. "The mortgage market today is very fractured and is far behind in terms of technology when compared with brokerage industry and securities industry. There are different entities for every aspect related to mortgage; appraisals, flood, credit report, inspection of homes, Titles and Settlements Company and there are real estate agents involved. We pull all the records together and help close the loan faster. Over the years we have built an ERP system which connects all of these entities through smart workflow which collects all the documents and relevant information, and processes it as it goes along so that we are able to offer to our customer a better quality product," says Arshad Masood, Founder & CEO, Visionet Systems.

Visionet Systems was founded in 1995 and in its first 10 years, the company built 11 products which are still used by some of the largest banks in the world. When the rest of the world was struggling from the economic meltdown, Visionet was thriving at a staggering 20 percent growth rate. In those early years the company noticed that its products were being used by other outsourcing companies. In 2007 they rectified this issue and began offering their products directly to end customers and simultaneously began providing outsourcing services. Upon adopting this change, the company became an umbrella for the entire caricature of mortgage, title, defaults needs and the growth rate jumped from 20 percent to 35 percent within the span of three years.
This Cranbury based company's products have been tested and applied and still continue to be used today, "We have built our own products and those products have matured through various cycles of the mortgage industry," says Arshad . The experience in the domain gives them a competitive edge over their counterparts as this company from New Jersey has stood through the tide of the Great Recession and has come through largely unscathed. Arshad mentions that all the employees who work in his company are "specialists" or domain experts with years of experience. Such expertise allows the company to provide valuable insight and market predictions; as to whether the market is going to take an upturn or a down turn. Today Visionet has become a pit stop for all your mortgage needs; it provides outsourcing, customer support services, mortgage and title solutions and innovative products.

Establishing MTRL
Visionet has a Research and Development team which is fully staffed and stacked with highly qualified and focused individuals. These individuals are not programmers or developers. However, they deal with customers; these people look at regulatory changes and the environment in the mortgage market and come up with solutions which are suitable for their customers but that is not the aspect which sets them apart.

The company has established MTRL mortgage technology research lab and this lab has been in operations for the last 8 years. The experts at the laboratory build solutions to problems that will arise in the near future. Focus on foresight keeps the company ahead of the market at all times, upholding the name of the entity, rendering it truly to be an organization with foresight and expertise in mortgage solutions.

Today Visionet focuses on the title and settlement, quality assurance, due diligence and loan review aspects of the mortgage making it the company which brings all the loose ends of this sector together and rectifying the errors that have crippled this sector since its inception.

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