Visionet Systems Enhances Its Mortgage Enterprise Risk Management MERM Offering

Visionet's MERM is a workflow and rules engine based system used to Define, Measure, Analyze, Improve & Control (DMAIC) and report on operational risk performance of a mortgage business. Visionet recently finished an end-to-end rollout of the system at another top 10 mortgage bank. The system is being used to monitor underwriting practices, ensure quality, track deficiencies, manage repurchases and provide timely information to investors, line managers, the loan servicing department, business partners and agencies through portals.

Visionet's leading clients have realized that outsourcing one hundred percent of quality functions like underwriting review, post close, repurchases and collateral authenticity has turned out to be disastrous. A few of the big name vendors who provided such services have either gone out of business or changed ownership. It turns out that the systems in place to monitor and track loan quality were simply inadequate. The information collected was piece meal and the lender or investor had no mechanisms to comprehend the risk. Most of the critical information was managed via free flowing spreadsheets with no mechanism to verify, rectify, or track what was being presented as the truth. MERM enables lenders and investors to streamline varied quality and risk management functions spread across secondary marketing, origination, and outsourced services such as title, appraisal, and income verification. It also enforces the corporate risk and lending guidelines all the way down to a clerk using smart workflow and rules based technologies. The solution maintains a real-time direct connection between information and collateral and offers foolproof methods to ensure data and document integrity. The system also enables controlled outsourcing of quality functions with 100% visibility and the ability to pull outsourced processes in-house at the click of a mouse. Six Sigma based dashboards and skill/capacity based work routing features are an integral part of the base solution.

"The Mortgage Industry will need to realize that risk cannot be managed though a better origination or a redressed legacy servicing system. It is the systematic disconnect between origination, secondary, and servicing which creates chaos and perpetuates risk. MERM can fix this gap for the lenders and investors who want to make money in the mortgage business," said Arshad Masood, President of Visionet.

http://www.foxbusiness.com/story/markets/industries/finance/visionet-systems

Business Financial Services

Visionet Systems Enhances Its Mortgage Enterprise Risk Management MERM Offering