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Montana Analytics Announces New Model Risk Management Program for a Large Financial Services Company

April 29, 2006

Minneapolis, MN—Montana Analytics announces the release of its Model Risk Management Program for Banks, Credit Unions, Thrifts and Financial Service entities. The company’s focus on comprehensive and rigorous analysis of a variety of risks models with full attention and compliance with regulatory requirements has culminated in the development and deployment of the new Program. Designed as a complete enterprise risk management system for a large Financial Services (mortgage aggregator) company, the new program is a continuation of custom solutions designed for today’s complex industry. The firm also provides Model Risk Management advisory services as well as independent Model Validation across the industry.

The company’s experience with models includes a broad array of internal and external (vendor) applications.  Internally developed models cover all aspects of mortgage decisions, pricing, hedging, portfolio risk and loan servicing management.  A key focus has been on critical risk systems that compute accounting valuations for risky assets including retained portfolio loans and securities.  “Our work spans from policy development and single model risk assessments to independent numerical examination of complex statistical models,” states Clayton J. Botkin, founder of the company.

The company’s Model Risk Management services include:
  • Model Risk Management Program Design and Implementation
  • Corporate Model Policy
  • Coordination with Business Units
  • Risk Ranking Models
  • Coordination of internal/external Model Review
  • Independent Model Validation
  • Comprehensive program meets OCC and FHFA 2009 AB-03 guidance
  • Benchmarking, Backtesting, Performance Monitoring
  • Liaison with Regulators as needed
Montana Analytics was founded by mortgage industry veterans in 2002 and is exclusively focused on mortgage and consumer loan analytics.  The small firm has expertise in all the risk management disciplines within the mortgage and capital markets space including origination decisions, credit and market risk management, trade-desk analytics and econometrics.  Montana Analytics senior professionals average more than 20-years of experience leading and managing groups in the nation’s largest and most advanced finance companies.  The company’s clients include both large and small firms spanning from hedge funds, to depository institutions (banks, thrifts and credit unions), FHLBanks, mortgage bankers, US Government agencies and GSE’s.

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