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Agencies and Financial Institutions See Cloud-Enabled Efforts Boost Housing Equity in the United States

Written by FedScoop staff

In April 2020, when more than 23 million Americans suddenly faced the prospect of unemployment, officials at Fannie Mae, one of the nation’s top sources of mortgage funding, faced an unprecedented situation.

“We had no historical benchmark to suggest how borrowers or mortgages might operate under such conditions,” said Kimberly Johnson, then Fannie Mae’s executive vice president and chief operating officer.

Johnson and other government-sponsored enterprise (GSE) executives recounted in a new report, sponsored by Amazon Web Services, how various cloud initiatives underway at Fannie Mae at the time enabled analysts to take action. quickly to assess potential risks and develop new tools. to help homeowners who may be in financial difficulty.

Fannie Mae is one of many leading financial institutions leveraging the cloud to modernize IT operations, reduce lending risk and improve institutional services, according to Olivia Peterson, former director of Freddie Mac and now head of financial services. U.S. federal officials at AWS, commenting in the report.

The report, “How Cloud-Enabled Innovation Helps Financial Institutions, Federal Agencies, and US Housing Equity,” highlights how enterprise-scale cloud services have helped Fannie Mae not only develop new risk models, but also to create a new, innovative approach to expanding access to credit for historically underserved populations.

The report also highlights how other financial institutions and federal financial agencies are using the cloud to modernize their services, including:

  • The IRS, which worked with AWS to leverage a number of FedRAMP-authorized data services, software, and infrastructure to improve taxpayers’ online experience, while strengthening security controls .
  • The Treasury Department’s Office of Tax Services, which created a FedRAMP “high-security” data lake to store, access, and analyze department-wide data, break down data silos, and create a platform to take support AI and machine learning.
  • The Financial Industry Regulatory Authority (FINRA), the national securities industry self-regulator, which has built a petabyte-scale data lake on AWS, enabling hundreds of analysts and partners to query terabytes of financial trading data in the US securities market.
  • The Government National Mortgage Association (Ginnie Mae), a division of the Department of Housing and Urban Development (HUD), which has freed up traditional computing resources using the cloud and is working to dynamically scale resources up and down according to actual needs.

“The continued speed and impact of ongoing technological changes in banks, investment firms, insurers and other financial institutions are also putting enormous pressure on monetary officials and government financial regulators to follow the beat,” Peterson noted in the report.

As the cloud helps GSEs and federal financial agencies like Fannie Mae and HUD meet growing user demands, “it also helps these GSEs and agencies focus more on their core missions — using data in new and more powerful, to expand housing equity and affordability in the United States,” said Felipe Millon, senior director of federal finance at AWS in the report.

Download the full report and learn how AWS is helping federal financial agencies and financial institutions innovate.

This article was produced by Scoop News Group for FedScoop and sponsored by AWS.

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Amazon Web Services (AWS), AWS 2022, Bureau of Fiscal Service, Cloud, Fannie Mae, Federal Housing Administration, Financial Industry Regulatory Authority (FINRA), Ginnie Mae, IRS, special report, Sponsored Content