Village Mortgage Case Study
For any rapidly growing lender, using an accounting software equipped to keep up with the pace of industry trends and new technology is essential for continuous growth and survival in the market.
Village Mortgage, a well-established lender providing residential mortgages across all of the New England states, Florida, Nevada and Colorado began to experience the struggles of outgrowing its accounting software, after they experienced rapid growth from 2012 through 2015.
“Our previous system wasn’t at all specific to the mortgage banking industry, which really limited what we could accomplish,” said Justin Girolimon, Senior Vice President & CFO at Village Mortgage. “We wanted to automate commissions and recording funded loans and purchased loans, and even utilize a branch portal where managers can see exactly how their branches are performing. We didn’t have any of that with our old system.”
Justin and his team felt it was essential they not only find a solution that worked for their industry, but one that contained all the standard financial management and accounting functionality they needed to support the business as it continued to grow and scale.
“Daily tasks like recording deposits, paying vendors, and recording journal entries were all very manual processes, and when you’re doing that for over 200 loans every month, we reached the point where we would have to hire at least one other person in the accounting department.”
Faced with the potential reality of settling for their current system and hiring even more employees to the accounting department, the team instead began the hunt for a new accounting solution to tackle the day to day tasks fraught with manual labor.
“Do we keep the system we have that includes a ton of manual processes and hire more employees in accounting, or do we look for a way to streamline it?”
Finding Their Solution
As his team browsed the market, Girolimon said that one solution stood out as the most polished among the other options they viewed.
“Loan Vision was the answer at the end of the day. The fact that we could automatically import the loans that are funded and purchased and vendor payables so we could have recurring monthly invoices automatically come up has freed up both of the individuals we have in the accounting department tremendously. Everything was housed within the system, there weren’t any add-on modules, and its Microsoft interface was very familiar for us.”
For Girolimon, transitioning to Loan Vision was one of the easiest conversions the team had ever experienced. The reporting capabilities housed within Loan Vision had bridged the gap left behind by the old software and finally gave his team the functionality they desired. “With Loan Vision, we can easily run a P&L report on any particular branch. Overall, we’re able to drill down into multiple layers of data that weren’t as easily accessible before, and when we looked at what Loan Vision competitors had to offer, all of it just didn’t seem easy at all.”
Trusting their accounting processes to Loan Vision has not only allowed the Village Mortgage team to dive deeper into their data, but has also cut the amount of time spent doing it all. “We’re reconciling our accounts every single day because it’s so easy in Loan Vision. With our old system, we issued our financials quarterly, and now we’re issuing them monthly, which has completely taken our warehouse lenders and investors by surprise.”
Using Loan Vision in conjunction with other business intelligence and forecasting tools, such as Alight and Motivity, the team now plans efficiently and accurately. “With all of these tools interfacing with one another, it’s much easier for us to manage and forecast the future now, instead of manually running projections. We’re able to make decisions more quickly, our profitability has jumped tremendously, and for the past three months, we’ve had our financials closed out completely and issued within 3 business days.”
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With Loan Vision, growth has been facilitated through allowing the business to run reports and extract key data quickly and efficiently"Oystein Konsmo, Chief Financial Officer, NOVA® Homes Loans
Moving to the latest version of Loan Vision will allow us to automate more and get more information to the decision makers in the branches without them having to reach out to the head officeOystein Konsmo, Chief Financial Officer, NOVA® Homes Loans