In support of the government mandate to strengthen the housing and credit markets, our client developed several initiatives to proactively monitor counterparty risk. KPMG worked with our client and performed data analytics to create enhanced algorithms to target risky loans for post endorsement and secondary risk reviews. Additionally, we developed a lender scorecard that served as an analytical dashboard for monitoring portfolio performance and financial risk. The KPMG team developed a modernization roadmap, and through the use of data analytics, were able to identify redundant business processes across legacy mainframe applications.
This analysis was used to define the IT/business transformation plan for our client’s next generation of housing systems. These data-driven analytics are providing key insights into counterparty risk to help our client strengthen its portfolio and capital reserves, which in turn support the nation’s housing recovery.