Underwriting and credit risk management

Overview

Over the last 20 years, the consumer lending industry has become an analytically intensive and data-driven business. Although the credit card industry was the first to adopt analytical techniques in every aspect of its business, other consumer lending industries, including automotive and mortgage, are also employing sophisticated analytical techniques to improve understanding their customer base, to control credit risk, and to identify profit opportunities.

We take a rigorous analytical approach to assessing the economics of the consumer finance business to provide insightful solutions for our clients. Bates White’s experts possess hands-on industry experience and a comprehensive set of capabilities to assist participants in consumer finance-related disputes or regulatory matters. Our experience includes developing pricing, underwriting, and statistical modeling strategies to enhance the economic performance of consumer finance businesses. Our professionals have constructed sophisticated pricing strategies, developed mass customized marketing campaigns, conducted customer segmentation and profitability analyses, and devised approaches to combat adverse selection. Based on this background, Bates White’s experts have developed economic models and statistical tests for complex litigation disputes and frequently provide advisory services, litigation support, and expert testimony to a variety of corporate and legal clients.

  • In the matter United States v. Wells Fargo Bank, served as testifying expert on behalf of the Department of Justice in connection with allegations that Wells Fargo defrauded the Federal Housing Administration (FHA) on loans that Wells Fargo underwrote and submitted for FHA endorsement. Determined damages arising from insurance claims on loans that allegedly failed to meet FHA-mandated underwriting guidelines. Wells Fargo agreed to a $1.2 billion settlement.