Case Study | Risk Management Analysis Services for the Office of Hospital Facilities at HUD

Risk Management Analysis Services for the Office of Hospital Facilities at HUD

Challenge: The U.S. Department of Housing and Urban Development (HUD) Federal Housing Administration (FHA) Office of Hospital Facilities (OHF) insures mortgages on acute care hospitals. OHF is comprised of two divisions that support underwriting and asset management of approximately 100 FHA-insured hospital loans. The risk analysis tool used by OHF needed improved capacity to produce sophisticated financial analysis. OHF required a single-platform solution that provides comprehensive risk management analysis services to enhance its underwriting and asset management decision making process.

Solution: The Summit Team implemented a modern risk management system for OHF’s hospital mortgage portfolio. Through its partnership with Moody’s Analytics, Summit delivered the installation, customization, and administration of Moody’s CreditLens and RiskCalc software. This solution provides OHF a Uniform Credit Analysis (UCA) Cash Flow Statement for historical or projected results. It provides the capacity to create, review, and stress test projections commonly used for forecasting the results derived from expanded operations or other scenarios. It also provides the ability to calculate a probability of default or benchmark financial results against industry peers. Although Moody’s software provides key functionality for OHF, Summit is OHF’s trusted advisor to ensure a successful transition from the legacy system, improve risk management processes, and deliver enhanced analysis and reporting services.

To manage the system transition, Summit performed extensive requirements analysis, mapped and migrated 4,000 historical financial statements, delivered a customized chart of accounts, and enhanced user training resources. Ever mindful of the importance of accurate data, Summit engineered a data input quality control process that combines automated control limits, an audit checklist, and improved process flows to ensure accurate input of financial data. Additionally, Summit compared ratios from the legacy system to validate variables, formulas, and results.

Building on these transition activities, Summit designed, developed, and deployed a portfolio dashboard that includes trend analysis, benchmarking, and other ad-hoc analyses at the request of the Government Technical Monitor (GTM). This dashboard is an R Shiny application deployed via Amazon EC2 with authentication through AWS Cognito and elastic load balancing through Amazon ELB.

Result: Throughout this engagement, Summit’s commitment to customer service has been recognized by OHF account executives and its leadership. Furthermore, the use of AWS has allowed for a more accessible and dynamic solution that integrates valuable financial data from Moody’s CreditLens.