Jobs Overview Flashcards
1
Q
Overview of Ray group
A
- My main accomplishment working at RGI was co-authoring V1 of the VA’s Enterprise Data Architecture Strategy
- I also oversaw a requirement gathering effort to support the building of a Next Gen CMP for the VA VRE
- Lastly I worked in our PMO where I providing risk management support to multiple projects within the VA’s Enhance the Veteran Experience and Access to Healthcare (EVEAH) program
2
Q
Overview of Fannie Mae
A
• My primary responsibilities were to develop and maintain DQ projects that supported FNMA’s loan quality initiative. I also provided data extracts to different organizations to support clean up and reporting initiatives ((IR/ Accounting).
3
Q
Data clean up efforts
A
- The foundation of the Single Family Data Quality team was the MBS ARM Data Compare.
- The Compare was a proactive data quality check that allowed us to identify and fix loans with bad payment data before they caused delays in our payment processing cycle.
- The Compare utilized an ETL tool to reconcile a Fannie Mae MBS extract against a servicer extract to generate loan exception reports.
- I then conducted data analysis using MS Access and Toad and reviewed legal documentation to determine (extract patterns from the data) who was booking the correct data.
4
Q
How did you identify Resources
A
- I identified the skillset needed complete each task within each phase. I then mapped that skill set to a job title.
- I then mapped that job title to the phase they would be needed.
5
Q
How to facilitate a meeting
A
- The key to facilitation is preparation. Preparation happens before the meeting.
- Preparation involves knowing your objective, identify the right people, and distribute questions and agendas to stakeholders beforehand so they have ample time to prepare.
- You only have so much time with stakeholder so you have to make that time count.
6
Q
How do you create a project plan?
A
- Creating a project plan involves working w/ stakeholders to define project objectives, requirements, and deliverables.
- Effective scheduling consists of identifying the tasks need to produce each deliverable, identifying the resources needed to complete each task, and estimating how many hours it will take to complete each task
7
Q
How do you solve problem?
A
• First I define my problem. Next I define my current & future states, requirements, & constraints; I then assess my resources and risks, define my approach & execute, Review my success metrics & make a decision
8
Q
Decision Making Process
A
- First determine your options. Gather Information. List Pros and Cons. Prioritize. Make decision. .
- Remember that no decision is perfect and that all choices are made in a condition of some uncertainty.
9
Q
How to prioritize –
A
you have to understand your client’s business, the big picture, & the downstream impact. You get this information by speaking with your managers/client & understanding your business.
10
Q
Data clean up efforts
A
- The foundation of the Single Family Data Quality team was the MBS ARM Data Compare.
- The Compare was a proactive data quality check that allowed us to identify and fix loans with bad payment data before they caused delays in our payment processing cycle.
- The Compare utilized an ETL tool to reconcile a Fannie Mae MBS extract against a servicer extract to generate loan exception reports.
- I then conducted data analysis using MS Access and Toad and reviewed legal documentation to determine (extract patterns from the data) who was booking the correct data.
11
Q
Change Management -
A
Obtain leadership support; Communicate Regularly; Make sure everyone understands why the change is being made
12
Q
Fannie Mae/Freddie Mac explained
A
- Fannie Mae and Freddie Mac are GSEs chartered by congress to promote liquidity in the mortgage market
- Simply put mortgages represent debt to borrowers, and represent assets to investors because of future P&I.
- When lenders sell loans to GSEs the lender receives cash, thus replenishing the supply of money for lending.
- The GSE receives the future stream of P & I payments, and assumes the default risk.
- Freddie Mac and Fannie Mae issues debt securities in the global capital markets to fund the purchase of mortgages
- They package loans with similar characteristics into Mortgage backed securities (MBS).
- Each time the GSE sells an MBS they collects a fee from the investor that guarantees the investors will receive P&I even if borrowers do not make their payments.
- The guaranty is important to investors because it reduces cash flow risk & increases the marketability of the security
- GSE income comes primarily from the “spread” which is the difference between the interest earned on mortgage assets and the interest paid on the debt issued to fund the purchase of assets
13
Q
Securitization Explained
A
- Securitization is taking an illiquid asset, and transforming into a security that promotes liquidity in the marketplace.
- Securitization helps reduce overall risk. For ex. If Tim defaults on his loan it would hurt if he sold his loan individually
- However if his loan was pooled with other loans the other loans could absorb or reduce the loss
- Securitization allows an issuer to break pools into tranches that can be structured for a variety of risk tolerances
- The 2 basic types of FNMA securitizations are: Whole loan conduit and Lender swap transactions.
14
Q
Financial Crisis Explained
A
- Fannie Mae and Freddie Mac enjoyed many privileges being a semi-public/ semi-public.
- Being semi-public they could borrow money at lower rate; being semi-private allowed them to have higher yields on their debt
- This advantage resulted in a monopoly in the housing market.
- An implicit guarantee made investors think GSE debt was less risky; and allowed GSE to take on more debt
- In the early 2000’s Wall Street started purchasing MBSs on the secondary mortgage market
- Wall Street also started creating riskier mortgage products. (Balloon, interest only).
- To stay competitive the GSE started buying these risker mortgages as well
- The bottom line as a result of wall street greed & the government’s desire to increase homeownership subprime mortgages became available to the masses
- When housing prices stopped rising and sub-prime borrowers started defaulting economies around the world began to collapse as credit froze and the banks ultimately needed to be bailed out by the tax payers.
15
Q
Futures
A
- Futures are contracts that obligate a buyer to buy an asset and a seller to sell an asset at a pre-determined date and price.
- For example it costs Jim $5.00 to make 1 Redskins shirt that he wants to sell on the market next year.
- He is worried the Redskins will not make the playoffs next year and the shirts will be worth $1.00.
- However Bill thinks the redskins will be good next year and agrees to buy the shirt next year for $10.00.
- Jim agrees to the deal to limit his risk and locks in his 5 dollar profit.
- The redskins win the Superbowl and Jim sells the shirt for $30.00. Making a $20 dollar profit.
