Case Study: Large Canadian Bank achieves $2MM benefit with Tredence’s Mortgage Policy and Risk Assessment Framework

Created a High Net Worth Mortgage Credit Policy and Risk Assessment Framework for the Us Division of a Large Canadian Bank

Tredence worked with a large Canadian bank to create a high net worth mortgage credit policy and risk assessment framework for its U.S. division. The bank’s existing underwriting policy was too risk-averse for high-net-worth borrowers, did not adequately handle non-W2 or non-standard income, and used an LTV approach that did not account for geography or fluctuating income levels.

Tredence designed a “Mortgage Policy Cube” to map applications against underwriting criteria such as LTV, credit score, and DTI across products and loan amounts, then overlaid historical applications and expected loss models to identify policy changes within risk tolerance. The result was approximately $2MM in benefits, over 10% decline swap, about 2% reduction in withdrawals, more than 5% additional booked applications, and over 40% fewer board-reportable exceptions.