IFE Group validated the mortgage underwriting systems for an international foreign government’s national housing agency. The engagement included: evaluating different approaches, such as Hedonic, Repeated Sales, Tax Proxy, and aggregation estimates from sub-models; conducting comprehensive validation, including code review, soundness of conceptual design, estimation analyses, reasonableness of model selection, and robustness of model performance; identifying issues and proposing remediation solutions; conducting stress-testing to evaluate model performance of the AVMs under hypothesized housing downturns; reviewing underwriting models and validating soundness of conceptual design and reasonableness of input variables; and presenting analyses to regulators.
