Case Study

Asset Resolution Program for Federal Financial Regulator

Oakleaf provided a hybrid team of industry subject experts, data science/analytics professionals to help stand up the data visualizations and reporting associated with the Federal Financial Regulator’s massive failed bank asset resolution program, which resulted from the 2008 financial crisis. The challenge was to identify the relevant data, stage it on a common platform and develop the analytical methods to validate and refine the Client’s existing approach to modeling proposals from acquirers of failed banks to exit the national resolution program prior to their contractual end.

Another challenge of this engagement was that the newness of this program and its complexity resulted in Oakleaf also fulfilling the role of the key power user and functional expert for this data for the Client. We provided the Client with hypothesis testing of mortgage economic theories, ad-hoc time series analysis supporting predictive analyses, and ad-hoc analysis and reporting to support Congressional inquiries on the progress and management of the program regionally.

Approach

Oakleaf created, designed, and developed reports on financial institutions for the field and senior management. This included producing conceptualized views of relevant data, implementing needed business metrics such as multiple final outputs and graphical displays to convey the meaning of the complex mortgage data and concepts that resulted in adoption by the Regulator. Oakleaf also produced a suite of tool-driven analyses and reports that allowed for powerful data visualizations.

Finally, Oakleaf staff collaborated across functions in a lead role to coalesce team input into the standards and research analytics of the assets data repository database to determine optimal calculation or definition of data elements. We defined and implemented the business requirements of the Change Control Board’s database changes, ensuring alignment with the business area. We worked with the assets data repository database development team, the division’s IT department, and the failed bank resolution program’s project management team to derive and implement data standards to the assets data repository database.

Result

  • Oakleaf’s dynamic ad hoc reporting was adopted by the Regulator to support key risk decision-making in areas such as: Financial Institution Real Estate Owned “roll rates,” analyses of institutions’ loan modification compliance, and calculations of loss severity measures and foreclosure claims.
  • As lead consultant to the business area’s IT assets data repository database team lead, Oakleaf assisted in combining many data sources into this central database, and developed and provided data quality improvements and accuracy reporting.
  • Oakleaf made recommendations for data editing and cleansing processes, which the Regulator’s IT division adopted to ensure the highest quality of data.
  • Oakleaf improved the effectiveness of the Regulator’s financial risk modeling by consistently improving the accuracy of the assets data repository database data through feedback, assessment, and reporting.
  • Oakleaf’s contributions enabled staff to perform complex, detailed analysis of market and institution risks quickly and accurately and to research issues in the portfolio.

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