Preventing a sub-prime mortgage crisis

This e-book initially addresses the causes and effects of the sub-prime mortgage crisis and sheds light on how Data Governance could have avoided the crisis if there had been a proper focus on the governance of data. In the sub prime crisis, the lenders allowed undetected risk to enter the banking stream through the acceptance of low quality data from sub prime borrowers, which spilled over to products sold to unsuspecting investors by the same lenders. A Data Governance Program is therefore, an integral part of a banking system to ensure what is delivered as a product is risk free, as any other product sold in the market. The Data Governance Program, as described here, takes into account the causes of the sub-prime crisis and whilst addressing the weaknesses in the lending process suggests a system of cross checking, monitoring and reporting to ensure early detection of low quality data.