Case Studies

Client Challenge: Our federal client desired a dedicated partner in developing, maintaining, and utilizing credit models to perform subsidy rate formulation and re-estimates to report to the Office of Management and Budget (OMB) and Circular A-11. Specifically, they required Subject Matter Experts in modeling loan programs using complex econometric credit models that utilize historical loan data as well as macroeconomic conditions. These complex credit models are written in Excel Visual Basic and SAS.

BWG’s Approach: We deployed a team of highly skilled financial data analysts, statisticians, and database administrators, who employed cutting-edge technologies and tools such as VBA, SAS, R, Java, C, C#, C++, Python, and SQL to provide comprehensive data analysis, reporting, and software development for the client. We maintained, built, and executed over 15 econometric and historical-average cash flow models to estimate and re-estimate the present value of the client’s loan portfolio (housing, business, utilities services, and others). BWG is responsible for updating these cashflow models with enhanced modeling logic to be industry standard and compliant with new policy. On multiple occasions, BWG made updates to these credit subsidy models based on changes in statutory requirements such as appropriation bills, and updated guidance from Office of Management and Budget (OMB) presented in circulars A-129 and A-11. BWG also performed model updates due to changes in technology, such as updates to the Credit Subsidy Calculator from OMB, providing a change analysis with each update. In addition, BWG has experience with using current systems and modernizing them by implementing automation to improve the workflow of the client. Our support provided this client with a forecast of the capital needs and provides policy advice for future Congressional appropriations. To achieve this goal, BWG has developed and continues to maintain a suite of cashflow models using SAS, VBA, and R to independently estimate the economic net value of the client’s loan portfolio.

Our outputs frequently involve Amazon Web Services (AWS) web applications to increase processing speed and visualization tools such as Power BI and Tableau, as well as development of custom dashboard visualization solutions in R using Rshiny. We excel in various data processing techniques, including data cleaning, transformation, and visualization, as well as advanced analytics such as predictive modeling. BWG's expertise extends to machine learning, deep learning, and artificial intelligence, enabling us to develop and deploy complex models and simulations for a wide range of applications. BWG employs a wide variety of Subject Matter Experts (SME) that collaborate with the technical staff to extract insights from the data that we analyze. Quality analysis is dependent on the symbiotic relationship between the client and BWG analysts, and BWG has a proven track record of assessing the needs of a client and providing a tailored, comprehensive solution.

Solution and Benefits: We delivered a robust, modernized suite of over 15 econometric and historical average cashflow models that are used to comprehensively assess the client’s loan portfolio. We also used these cashflow models to perform subsidy rate formulation and re-estimates to report to OMB and external auditors, receiving a clean audit through the life of the contract.