Consumer Lending

CASE STUDIES

Improving accuracy in risk management for a leading mortgage banking company in US.

Business Problem:

A leading mortgage banking company in the US needed independent validation of their suite of models covering the entire life cycle (originations to foreclosure/REO management) as part of their model risk management framework.

Solution Approach:

Our consultants worked with the business owners from finance, marketing, risk and operations to back test hundreds of algorithms in span of few months and assessed several model risks. The entire model validation process, based on sound practices related to model governance as well as our team's knowledge on industry best practices, was in compliance with the regulatory requirements of OCC and Fed.

Result:

This engagement led to identification of opportunities to enhance model accuracy and stability and prioritization of future model development efforts.


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