CHL Mortgages appoints Jaywing to deliver a comprehensive IFRS 9 model monitoring suite

Credit risk expert, Jaywing, today announces a new engagement to develop a comprehensive IFRS 9 model monitoring solution to mortgage provider, CHL Mortgages. Jaywing’s IFRS 9 model monitoring will cover a range of CHL’s residential and Buy-to-Let (BTL) products.

Jaywing began work on the project by providing independent model validation to CHL. It has now also developed a bespoke monitoring suite, which provides an up-to-date view of model performance. Jaywing’s solution has now been fully implemented for CHL’s impairment calculations under IFRS 9.

Kuan Ang, Head of Finance at CHL Mortgages, said: “We chose Jaywing because they understood our specific business challenges. Jaywing quickly integrated with our teams to deliver IFRS 9 compliant monitoring, MI and validation, all on time and to budget.”

Nevan McBride, Risk Practice Director at Jaywing, said: “We were delighted to be selected by CHL to help them achieve their IFRS 9 goals. We immediately deployed a team of experts who not only delivered against the project requirements, but went above and beyond scope by providing additional insight and industry knowledge. We have established many long-term relationships with our clients through consistently delivering value across a range of areas in risk and more, and look forward to the opportunity to forge a similar partnership with CHL.”

The complexities of IFRS 9 present new monitoring challenges for lenders and other financial service providers, particularly around longer-term, forward-looking models. These introduce a new dimension that is tricky to manage in a practical and informative way. The economic forecasts embedded in the models lead to a further difficulty of isolating sources of error to extract meaningful insight. Jaywing is uniquely placed to help lenders overcome these challenges, given its considerable experience in IFRS 9 monitoring and MI projects.

Jaywing’s team of risk and data science specialists is now more than 70 strong and has almost 20 years’ experience helping many of the UK’s leading lenders with regulatory and operational modelling and analysis projects. Recent projects include IFRS 9, IRB, and ICAAP for the likes of Nationwide, RBS and Coventry Building Society. As well as supplying IFRS 9 modelling solutions, Jaywing’s also experts offer specialist AI consultation for lenders looking to embed AI into their organisation.