freddie mac single-family data governance · review project documentation to assess alignment with...
TRANSCRIPT
![Page 1: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/1.jpg)
Freddie Mac Single-Family Data Governance
April 26, 2016
![Page 2: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/2.jpg)
© Freddie Mac 2
About Freddie Mac
![Page 3: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/3.jpg)
© Freddie Mac 3
Chartered by Congress in 1970 to provide liquidity, stability, and affordability to the U.S. housing finance market
Operates three main business lines: » Single-Family (1 to 4 units) » Multifamily (5 or more units) » Investments
Participates in the secondary mortgage market » Buys mortgages and related securities » Issues guaranteed mortgage-related securities » Offers an array of products to fit market needs
Provides resources and tools to support customers and educate the public
Corporate Background
![Page 4: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/4.jpg)
© Freddie Mac 4
Delivering Results
![Page 5: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/5.jpg)
© Freddie Mac 5
Performance at a Glance
Metric In 2015
Total liquidity provided $402B SF liquidity provided $351B SF homes financed 1.6M SF refinances $198B
910K borrowers SF borrowers helped to avoid foreclosure
94K 2009-2015: 1.2M
Treasury draws1/ Dividend payments
$0/$1.7B Since 11/08: $71.3B/$98.2B
1Excludes the initial liquidation preference of Freddie Mac’s senior preferred stock of $1B. Dividend payments do not offset prior draws.
$5.8 billion in comprehensive income in 2015
![Page 6: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/6.jpg)
© Freddie Mac 6
Book Year % SF Portfolio Seriously Delinquent Rate1
% of 2015 Credit Losses
Core book 2009-2015
66 0.21% 3
HARP + other Relief Refinance
18 0.75% 8
Legacy book 2008 and prior
16 4.12% 89
Total 100 1.32% 100
Building a Strong Book of Business
1Per MBA’s National Delinquency Survey, rate on first-lien SF loans in U.S. market was 3.95% as of 6/30/2015
![Page 7: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/7.jpg)
© Freddie Mac 7
Single Family Portfolio & Workouts
![Page 8: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/8.jpg)
© Freddie Mac March 2016 8
Expanding Homeownership Responsibly
![Page 9: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/9.jpg)
© Freddie Mac March 2016 9
Better Solutions: Coming Soon - Loan Advisor Suite
Reliability Instill trust that
our tools are available when you
need them
Helping our customers succeed through an innovative suite of solutions designed to deliver certainty, efficiency, reliability, and usability
Certainty Give you confidence
that the loans you originate meet the
requirements for delivery and sale
to Freddie Mac
Efficiency Lower the cost to originate via automated data validation and focus your attention where it needs to be
Usability Provide intuitive and easy-to-use tools, with clear and actionable feedback
![Page 10: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/10.jpg)
© Freddie Mac March 2016 10
Improving Loan Manufacturing Quality with the Integrated Loan Advisor SuiteSM
Application Processing / Underwriting Pre-Closing Closing Loan Delivery Servicing
Loan Prospector ®
Loan Collateral Advisor
Loan Quality Advisor ®
Selling System
Loan Coverage Advisor ®
![Page 11: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/11.jpg)
© Freddie Mac March 2016 11
Giving Greater Certainty with Data and Tools
Uniform Data Standards
Uniform Loan Delivery Data Set Data elements required at loan delivery for Freddie Mac loans.
Uniform Appraisal Data Set Standardizes definitions and includes all required fields for an appraisal submission.
Uniform Closing Data Set Standardizes data associated with closing transaction: supports CFPB’s Closing Disclosure form.
Uniform Loan Application Data Set Leverages URLA and standardizes data for loan application submission.
Third
-Par
ty D
ata
Verif
icat
ion
Comprehensive Support
Data Quality Credit Quality Collateral Value/Quality Product Eligibility Risk Management
Pre-Purchase Loan Prospector ®
Assists lenders in manufacturing Freddie Mac eligible loans (credit and capacity). Home Value Explorer®
Provides collateral valuation for residential properties and can help flag potentially inflated appraised values during appraisal review. Uniform Collateral Data Portal®
Provides an early view into appraisal quality and any potential collateral risk. Loan Quality Advisor®
Helps lenders validate that a Freddie Mac eligible loan was manufactured and is ready for delivery.
At Purchase Selling SystemSM
Prices and purchases loans from lenders based on agreed to terms.
Post-Purchase Loan Coverage Advisor® Establishes, tracks, and analyzes loan events throughout the life of a loan impacting Seller representation and warranty relief dates. Quality Control Information Manager
Secure web-based reporting system for Freddie Mac and our customers to share performing and non-performing loan data and better manage repurchase and remedy requests.
Freddie Mac Suite of Tools
Data Validation
Gre
ater
Cer
tain
ty
![Page 12: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/12.jpg)
© Freddie Mac March 2016 12
The Data Governance Journey
![Page 13: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/13.jpg)
© Freddie Mac 13
A Historical Perspective
Data Certification based on agreed-upon procedures
SOX Attestation for financial statements and control testing
SOX CDE Identification; Full E2E Data Lineage; Full E2E DQ Controls supporting SOX Attestation
Rollout to Business; adopt Industry standard Governance Framework; Implement policies & standards; implement tools
Risk-Based Capital Rule
2014 Strategic Initiative
SOX/SEC Registration
Credit Crisis
IT previously managed the data governance organizations.
Regulatory Risk-Based Capital Rule required data certification.
The credit crisis caused serious delinquency and foreclosure volumes to spike; while mortgage servicers re-tooled to implement high volumes of new loan workouts, the risk of data errors increased.
Finance mandated an enhanced process for the identification of Critical Data Elements (“CDEs”), E2E data lineage maps and E2E transparent, comprehensive and testable data quality control design and execution.
In 2014, we started the full-scale implementation of Data Governance to support strategic business initiatives. Transferred data governance out of IT to the Single Family business.
![Page 14: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/14.jpg)
© Freddie Mac CONFIDENTI AL 14
Single-Family Business Data Capabilities Framework
Data Governance
Technology Engagement
Reporting, Analytics
& Modeling Data Quality Metadata
Data Asset Mgmt Master Data Mgmt
SF DG&M Management
Vendor Management
Innovation
Data Capabilities Framework
![Page 15: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/15.jpg)
© Freddie Mac CONFIDENTI AL 15
How Will the SF Data Strategy Generate Value? Empower. Simplify. Reuse. Control.
• Supports speed to market and innovation • Provides authoritative data and
robust toolsets • Catalogs source of truth for SF data
• Improves process efficiency and quality • Creates capacity • Reduces hard costs
• Standardizes “rules of the road” • Aligns risk mgmt with risk exposure • Reduces data sprawl & testing costs
Empower
Simplify / Reuse
Control
![Page 16: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/16.jpg)
© Freddie Mac 16
Organization O
ur
Rol
e O
ur
Team
Deliver quality Single Family information and make it accessible and useful to the business
XX FTEs utilizing the following critical skills: Strategic analysis, communication skills, business analysis, data & research analysis, project management, relationship management, operations management, Metadata, risk & and control measures, understanding of Shared Information Assets (SIAs) mgmt
Contact the team members below for more information:
Vice President Jodi Morton
Data Governance Director
Loretta Ibanez
Business Intelligence &
Analytics Director Dennis Tally
Counterparty Data & Administration
Director Lori Smith
Approved Provisioning Points
(APPs) Manager Van Lin
Shared Information Assets Business
Operations Director Matthew Klena
CDW Manager Marjorie Sterner
ODS, RDS, DTS, EIH & BDMS
Glossary Manager Sudha Aluri
Func
tiona
l Te
ams
Area
s of
Res
pons
ibili
ty
Key Business Partners: Single Family, Finance, IT, Enterprise Architecture, Enterprise Risk Mgmt, Corporate Compliance, Privacy Office, Internal Audit, I&CM
Data Governance Business Intelligence & Analytics
Counterparty Data & Administration
Shared Information Assets Business
Operations*
• Design and implement SF data governance framework & strategy
• Manage SF Business Advisory & Governance Forum (“SF BADG”)
• Design publish, rollout & train on SF business Data & Metadata standards and procedures
• Design, implement & manage SF Metadata Repository
• Design, implement & publish SF Data Quality reports, dashboards & certification
• Manage SF Data & Metadata waiver/exception process
• Monitor SF data quality corrective action as appropriate
• Develop, deliver & communicate the SF Data strategy
• Develop and sustain SF Business Intelligence (BI) & Analytics Enclave (AE) multi-year roadmaps
• Manage the implementation of new SF analytic capabilities in conjunction with key business partners
• Provide assurance that SF Data strategy & roadmap align with SF strategic priorities and target state architecture
• Establish communication plans & organizational processes to support SFDG&M data consumption to drive increased value of data
• Lead, as required, and support SF and corporate research & development projects and initiatives; including Counterparty Approved Provisioning Points (APPs)
• Establish, manage and implement corporate & divisional strategy and administration activities including:
o Mgmt Rptg to key stakeholders & Sr. Mgmt
o Compliance with divisional & Corporate policies (Privacy, BCP, Records Mgmt, etc.)
o HomeFront & SharePoint content management & administration
• Full life cycle management for Shared Information Assets (SIAs)
• Manage data access to the SIAs & APPs
• Data Quality (DQ) controls monitoring and data validation support for SIAs & APPs
• Analyze, approve & validate data changes and corrections to SIAs
• DQ Issue & Resolution Mgmt support including reporting & communication of DQ issues & the availability of SIAs & APPs
• Risks & Controls mgmt, including audit support for SIAs & APPs
• Governance of all SIAs & APPs initiatives/enhancements including:
o Review of requirements o UAT o Post Prod results validation • PortVal
* Includes APPs, CDW, ODS, RDS, DTS, EIH & BDMS Glossary
![Page 17: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/17.jpg)
© Freddie Mac 17
E2E Data Quality Framework
![Page 18: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/18.jpg)
© Freddie Mac 18
Fit-For-Purpose Governance
![Page 19: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/19.jpg)
© Freddie Mac 19
Governance Rollout Strategy
Non-SOX High Risk & Supporting Moderate SF Processes & Models:
Facilitated Rollout
2015
High Risk Models/ Processes 4 Models XXXX(H) XXXXX(H) XXXXX(H) XXXXXX(H)
5 Processes XXXXX(H) XXXXXX(H) XXXXXXX(Downgrad
ed to Moderate) XXXXXXX (H) XXXXXXXX(H)
2016 Projects: Follow Change Management
Processes For New SF Capabilities
2015-2016 SF Data Governance Standard Roll-Out Scope
Review project documentation to assess alignment with the SF Data Governance Standard
SF DG&M reviews projects that meet at least one of the following criteria: ‘Critical’ (i.e. >$500K) and
impacts a High Risk process in GRC, or
‘Critical’ (i.e. >$500K) and deemed Architecturally Significant
Conduct Training: Schedule classroom sessions
every eight weeks through June 30, 2016. 3Q and 4Q frequency TBD.
SF Data Governance Standard:
Update Standard and Conduct Training
Update v1.1 of the Standard targeted for 2Q
Waiver Process Execution EDMC DCAM Framework
adopted Conduct Training: Classroom sessions
every six weeks through June 30, 2016. 3Q and 4Q frequency TBD
Training addresses Standard alignment and project implementation
Additional Data Lead training focusing on Data Standard implementation in 2nd half of year
2016
New High Risk and Supporting Moderate Risk Models/ Processes 1Model: XXXXXX(M) XXXXXX (Addressed in 2015)
13 Processes XXXXXX(H) XXXXXX(H) XXXXXXX(H) XXXXXXX(H) XXXXXXXX(H) XXXXXXX(H) XXXXXXX(M) XXXXXXX(M) XXXXXXXX(M) XXXXXXXX(M) XXXXXXXXX(M) XXXXXXXX(M) XXXXXXXXX(M)
![Page 20: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/20.jpg)
© Freddie Mac 20
Governance Rollout Process
![Page 21: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/21.jpg)
© Freddie Mac 21
Highlights & Issue Descriptions
Notes: a) Data Quality controls will be marked as green unless there is a control deficiency or the de minimis threshold was broken. b) Issues are reported on an exception basis displaying the number of controls with issues identified in the current reporting month out of the total number of controls. c) Controls may have consumers with varying Fit-for-Purpose classifications, therefore may be counted in multiple columns. Controls will only appear within one Data Supply Chain business area.
Data Quality Performance Highlights All Fifty-two (XX) data quality controls and checks being
tracked performed as expected. These controls cover XXX of XXX SOX CDEs and XX of XXX Operational CDEs.
Twenty-eight (XX) of the SOX controls also cover Operational CDEs for High Risk Consumers. These controls cover XX of XXX Operational CDEs.
One additional key control is being tracked as of XXX reporting cycle. (Key Control Description(X.XX.XXX.XXX)
DQ Control Issues & Notes No data quality issues exceeded the de minimis thresholds
for XXX results
Data Quality Performance
Dat
a Su
pply
Cha
in (C
ontr
ol O
wne
r)
Con
sum
e
Finance
MM&R
DAVM
ERM
Stor
e
SF CDM
Port Val
CDW
Acqu
ire
Default Fees & Claims
REO & CL
Servicing
Sourcing
Performing Loans
SOX Total: XX
High Total: XX Moderate
Operational
Fit-for-Purpose (Data Consumer) Not Tracked/Unavailable
x/n Moderate Issue
x/n Critical Issue
0/n On-Track/No Issues
n = Number of Controls x = Number of Controls with Issues
SOX Key Control performance and certain loan-level Non-Key Control performance over SOX and Operational CDEs displayed. Controls have been added to the dashboard as applicable, with additions incorporated as available. Control mapping for Operational Non-SOX CDEs isongoing.
Data Quality Dashboards: Data Quality Performance Control results as of XXX, 2016
![Page 22: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/22.jpg)
© Freddie Mac 22
Data Quality Performance – High Risk Consumers
Dat
a Su
pply
Cha
in (C
ontr
ol O
wne
r)
Con
sum
e
Finance
MM&R
DAVM
ERM
Stor
e
SF CDM
Port Val
CDW
Acqu
ire
Default Fees & Claims
REO & CL
Servicing
Sourcing
Performing Loans
Model 1 Total: XX
Model 2 Total: XX
Model 3 Total: XX
Model 4 Total: XX
Process 1 Total: XX
Process 2 Total: XX
Process 3 Total: XX
Process 4 Total: XX
Process 5 Total: XX
High Risk Models (Consumer) High Risk Processes (Consumer) Not Tracked/Unavailable
x/n Moderate Issue
x/n Critical Issue
0/n On-Track/No Issues
n = Number of Controls x = Number of Controls with Issues
Notes: a) Data Quality controls will be marked as green unless there is a control deficiency or the de minimis threshold was broken. b) Issues are reported on an exception basis displaying the number of controls with issues identified in the current reporting month out of the total number of controls. c) Controls may have consumers with varying Fit-for-Purpose classifications, therefore may be counted in multiple columns. Controls will only appear within one Data Supply Chain business area.
Control performance over Operational CDEs displayed. Controls have been added to the dashboard as applicable, with additions incorporated as available. Control mapping for Operational Non-SOX CDEs is ongoing.
Data Quality Performance – High Risk Control results as of XXXXX, 2016
![Page 23: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/23.jpg)
© Freddie Mac 23
The Metadata Management Business Case
What is Metadata?
How will we use it?
Why do we need it? Business Metadata Technical Metadata
Metadata
Operational Metadata
Information about the technical components such as:
Table Name
Column Name
Data Type
Links to related files and indexes
Descriptive information providing context about the data, typically defined by the business such as:
Purpose of the data
Data Owner
Data Classification
Definition of data population
Business rule logic, purpose and
intentAdministrative information to manage a resource:
Creation Date, File Type
Access Rights/Entitlement Restrictions
Retention Rules / Purging Rules
Every day, new analytics, reports and models are being generated in response to changing market, cost and regulatory environments.
As a starting point for the Analyst, seldom does a data glossary exist and is accessible via a central source/ interface (data glossary = metadata or information describing key data in business terms).
Every day, Analysts resort to using their social network and word of mouth to find the right data – as a result 40% or more of their t ime is spend finding and fixing the data. This approach is tedious and oftentimes yields inconsistent results.
The data glossary underlying this data is often viewed as a personal asset (i.e., job security) vs. an enterprise asset.
In spite of attempts to leverage personal networks to understand the data, the Analyst must often re-work his/her data because stale or incorrect data / metadata was used.
The result – too much analyst t ime is spent on low value activities. Analyst t ime is often allocated…40% finding, fixing, reworking data40% developing business insight20% explaining the results.
Failing to find all the data they need from existing sources, new extracts may be developed to supply the missing data. This extends the turnaround times, increases cost to the business, adds complexity and decreases responsiveness to change.
Often no one owns and maintains the metadata/ data glossary relating to the new data pulled - so again the data will not be re-used.
$
$
$
Where is the right data?
Metadata
Metadata
Metadata
$ $ $ $
Analyze and Develop Insight
Design Build Test O perate
...Somewhere insideFreddie Mac Today…
I’ll have to create a new
extractTime spent on data detective work
40%
Explain Results
20%
40%
Search Business Term
View Metadata and Custom Attribute
Related Terms (Relationship View)
Run / View Lineage
Relate Logical Term to Physical Term Attribute
View Lineage
Impact Analysis
View Glossary Functionality
Glossary Hierarchy (Based on Capabilities Model Options)
Policy (Relationship View)
Workflow Propose Change to Metadata
Business Glossary Desktop
andAnalyst
Metadata Manager
Analyst
Tool Interface Key Functionality
![Page 24: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/24.jpg)
© Freddie Mac 24
Informatica Metadata Implementation
Plan, Requirements, RFP, Software Deployment, Operating Model Cross-Divisional Project Team
Glossary Design & Load
Technical Scanning & Loading
Lineage Linking & Viewing
![Page 25: Freddie Mac Single-Family Data Governance · Review project documentation to assess alignment with the SF Data Governance Standard SF DG&M reviews projects that meet at least one](https://reader030.vdocument.in/reader030/viewer/2022040514/5e6ccca13d159846584af2a4/html5/thumbnails/25.jpg)
© Freddie Mac 25
Data Governance is a business activity with technology enablers: approach it from a business risk management perspective
Implementation is a journey
Don’t try to boil the ocean
Lead with process then select integrated technology solutions
Know your supporters and detractors and have a strong, focused communication strategy to drive adoption
Partner with influential, willing participants
Don’t just be the data cop: offer a carrot, in addition to having a stick
Get all three lines of defense aligned on the problem, desired outcomes and solutions
Lessons Learned