Bayview interview

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Florida International University *

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Management

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Apr 3, 2024

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docx

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Uploaded by gonzvegas

Talk to me about your experience at Bayview Asset management: Tasks:  I constantly develop reports in a as needed basis to satisfy immediate analytical needs. This analytical needs may vary, for example my boss recently asked me to create a dashboard that would basically slice the whole data for loans closed and LOI’s issued by broker classifications. From there I had to slice the data a level deeper to understand what % of the population was coming from new brokers. The % of new brokers vs the % of returning customers mainly gave us a picture on where our business was coming from in terms of brokers classification (those could be Commercial & residential brokers, only commercial, only residential and upfront mortgage brokers)  I’m also in charge of the YTD and MTD KPI Report. An example of the KPIS that I constantly present are: different run rates for LOI Issued LOI accepted, Loans funded, by units and then by unpaid principal balance amounts. Not only run rates but also run rate vs plan and average daily. I also present different graphs that give a clearer picture of the historical data for each of the KPI’s I mentioned earlier.  I’m also in charge of updating the pricing model according to guideline and market movement. Once the model is updated, I make it available salesforce for all the AE’s to see. I also track the changes implemented into the rates matrix for both our product types. For SBC the benchmarks we use is the 5Y swap and for DSCR we use 5Y SOFR. Example of a problem regarding the Pricing model Im also the designated person to contact when having questions about the Pricing model. One question might be: They sent me an email recently indicating that there was an issue with the final rate. The Ae’s didn’t know why. For some reason the rate didn’t go above 8.75 % and the AE was encountering issues on the DSCR due to this. Meaning the final terms weren’t as favorable as expected for ensuring the borrower's ability to service the debt. DSCR is crucial because it measures the cash flow available to pay current debt obligations. I concluded that me we needed to adjust the dscr adjustment so that the floor rate was being considered and doesn’t use a rate below the floor rate. This adjustment ensures that the loan's profitability and the borrower's ability to repay are not underestimated by using an interest rate lower than the floor rate. Sometimes we need to adjust for brokers front point.  One of my tasks is to prepare the pull through analysis or also called fallout analysis which gives a clear vision of why loans are failing to pull close and why are they being withdrawn, the key is

to understand how we can make our business more efficient by identifying patterns inside the reasons described by the clients. Then we slice the data by property type, rates offered, loan amounts , dscr bands, property types, fico scores, geography .  I also create a presentation that gives a monthly summary of our Production life to date divided by product types and then I perform an analysis on our delinquency percentages in relation to our current loans and our paid off loans.  I also send a presentation every Monday showing the active pipeline in our database to our managing director. This presentation basically shows her closed loans by budget group in the month, closed loans by occupancy, closed loans by loan officers, overall lois issued and lois accepted. Then it also gives here closed loans in the month by stages of production. By top 10 states , by fico scores etc and etc.  I mainly work with relational databases such as salesforce & Encino. As a matter of fact the first thing that I did when I got into Bayview was do all the courses for being a salesforce business analyst. Mainly I can Perform basic Salesforce configurations such as creating custom fields, setting up validation rules, configuring workflow rules, and custom reports and dashboards. I also collaborate with Salesforce developers for more complex customizations that require coding, such as Apex, Visualforce pages, or Lightning components. For visualization tools I mainly use power Bi  Alteryx I created various alteryx workflow reports such as data extraction workflows to serve as inputs for excel models such as the pricing model. I have the delinquency workflow.

Banesco USA:  Take a minute to walk us through your proudest professional achievement. as a risk analyst in a bank, understanding what happened with SVB and what was the liquidity crunch all about was completely necessary. One of my proudest professional achievements was contributing to the development and implementation of a new updated version of the risk appetite framework that helped the bank mitigate and manage various types of risks but specifically liquidity risks. I began by reading and understanding what the liquidity crunch was all about. I did extensive and in-depth research …. Once I understood the topic, I was able to identify and assess potential risks that the bank may face, in this case “liquidity risks”. To do this, I would work closely with other members of the risk management team, as well as other departments in the bank (specifically treasury), to gather data and information, analyze trends, and make informed questions and decisions about risk mitigation strategies. Once the possible risks were identified and assessed, it was my responsibility as a risk analyst to develop and implement key risk indicators that helped the bank keep track of its exposure to those risks. This involved in-depth finance knowledge and constant monitoring and reporting systems to keep my managers informed and the bank aware. The risk appetite framework update was successful in taking into consideration new liquidity risks that mitigate and manage possible risks, (KRIS I IMPLEMENTED unrealized losses / total deposits, core deposits/ total deposits and unsecured deposits/total deposits between others) I was proud to have played a role in ensuring the bank's financial stability and protecting its customers' assets. Additionally, I received recognition from my VP for the high-quality product, this was a testament to the hard work and dedication of the entire risk management team, including myself as a risk analyst. I know that my dedication towards learning completely new topics and my ability to process the information effectively will be of help in my future career in Morgan Stanley.  CECL Experience Analyzing Different Macroeconomic Scenarios: I conducted thorough analyses of various economic conditions to assess their impact on expected credit losses. This was crucial for ensuring that we considered a comprehensive range of potential future states and their implications on our loan portfolio. Collaboration with Regulators and Experts: I worked closely with regulators, Moody's, and our bank's quantitative analysts. This collaboration allowed us to leverage expert insights and sophisticated modeling techniques, significantly enhancing the accuracy and reliability of our analyses. Calculating Reserves for Each Scenario: My work involved estimating the reserves required under each macroeconomic scenario. This task was pivotal in ensuring our bank's financial stability and compliance with regulatory requirements, as it involved setting aside adequate reserves to cover potential future credit losses over the loans' lifetimes.

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Developing Methodology and Presentation: I also took on the responsibility of creating the methodology file, which detailed the approaches and assumptions used in our analyses. Moreover, I played a key role in presenting our findings and methodologies to the CFO. These presentations provided essential information for strategic decision-making and compliance reporting.  Key risk Indicators for banesco USA On CAMEL BASIS WHICH MEANS Capital asset quality, management & operational, earning and profitability , liquidity risks. 1. Capital Adequacy Capital Adequacy Ratio (CAR): Measures the bank's capital in relation to its risk-weighted assets. A higher ratio indicates a well-capitalized bank. Tier 1 Capital Ratio: Focuses on core capital, including equity capital and disclosed reserves. It's a strong indicator of financial health and resilience. Leverage Ratio: Compares core capital to total assets, indicating how leveraged a bank is without risk-weighting assets. 2. Asset Quality Non-Performing Loans (NPL) Ratio: The proportion of loans that are in default or close to being in default. A higher ratio suggests lower asset quality. Loan Loss Reserves to Gross Loans: Measures the buffer a bank has set aside to cover loan losses. An indicator of how well a bank is prepared for potential loan defaults. Write-offs to Gross Loans: The ratio of loans written off to the total gross loans, indicating the health of the loan portfolio. 3. Management & Operations Cost-to-Income Ratio: Measures operational efficiency by comparing operating expenses to net income. Lower ratios indicate higher efficiency. Employee Turnover Rate: High turnover can indicate issues with management practices or employee satisfaction. Compliance Violations: The frequency of regulatory compliance issues can indicate management effectiveness and operational risk. 4. Earnings Return on Assets (ROA): Indicates how efficiently a bank utilizes its assets to generate earnings. Higher ROA suggests better management of assets. Net Interest Margin (NIM): The difference between interest income generated and interest paid, divided by total earning assets. It measures the profitability of lending activities.

Operating Income Growth: Year-over-year growth in operating income, indicating the bank's ability to grow its core business. 5. Liquidity Liquidity Coverage Ratio (LCR): Measures the bank's ability to meet short-term obligations without needing to raise external funds. Higher ratios indicate stronger liquidity. Net Stable Funding Ratio (NSFR): Assesses the stability of a bank's funding structure over a longer-term horizon. A higher ratio suggests a lower risk of funding stress.  Why im interested in the job: The role offers the opportunity to lead the design and execution of an enterprise data analytics and reporting roadmap. I will work closely with senior leadership, including the Chief Operating Officer and Technology teams, similar to how i've been directly involved with my managing director. The responsibility to define standards for enterprise data, like sources of truth, mirrors my experience in managing data integrity and accuracy in reporting. This role would allow me to apply my skills on a larger scale. It’s an opportunity to deepen your expertise in data analytics and reporting technologies. Represents a significant opportunity to leverage my existing skills and experiences in a broader, and more strategic context at a higher level of responsibility.  Questions : For Juan : Can you provide more details about the specific projects or initiatives the Enterprise Data and Reporting team is currently working on? What are the biggest challenges currently faced by the Enterprise Data and Reporting function? What opportunities for professional development and growth are available within this role? For Alex: What does success look like for this position in the first 6 to 12 months? "Can you tell me more about the team I'll be working with, including how the team is structured, the number of team members, and the key areas of expertise within the team?"

Bayview interview

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