Blog de Ashutosh Jain

One of the main problem in solving current financial crisis is the lack of visibility as to how the CDOs are bundled. Absence of systematic controlled data is adding to other wise uncertain housing market and fueling further loss of trust. This is NOT to suggest that there is no other issue. Sub prime loans are obviously at the heart of this crisis but once again the bigger problem is "lack of visibility" or a central system that could ensure quick and accurate information to decision makers.

There is (obviously) no established business solution to address this functionality at such humongous level. We are talking of having each and every mortgage mapped to the physical building , linked to the first lender and then show how they are appearing under different layers of CDOs ..ultimately tracking to the real holders of mortgage. There can be two ways to implement such system

a) Federal Govt mandates every lender to implement such a tightly controlled system and overview it (the way FDA does for Pharmaceutical companies)

b) Federal govt implements a central system (the way DMV does it for every single vehicle)


One of the potential solution can be to use "SAP Flexible Real Estate Management" as a base system (starting point). SAP Flex is designed to handle the the commercial and residential properties and all the standard business functionality required to run the leasing , renting and contracting etc. Has a good interface with ISRI to show the physical architecture.

SAP Flex can be easily extended to link the mortgage details and ultimately CDOs. Given the fact that SAP solutions are scalable , robust and can handle the enormity of this challenge , I think its a very good starting point for some one in high office who really want to make sure that we don't hit the next crisis just because there was no system to manage the data ..

Please contact Ashutosh Jain