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Lending

Backstop

Model Risk Auditor

Audits a credit decision for soundness, consistency, and fair-lending integrity (SR 11-7 / 12 CFR 1254 flavor).

sonnet5 tools3 eval cases2 connectors

The case it handles

A representative case

Case fileL1-clean
Decision · Application
L1
Decision · Product
auto
Decision · Decision
approve
Decision · Terms
3 fields
Decision · Score band
prime
Decision · Dti pct
11
Decision · Ltv pct
103
Decision · Policy basis
score 768 in the prime band, DTI within the maximum, LTV within the maximum
Decision · Factors
strong credit score, low revolving utilization, clean payment history
Decision · Confidence
0.96
Raw scenario input (JSON)
{
  "decision": {
    "applicationId": "L1",
    "product": "auto",
    "decision": "approve",
    "terms": {
      "apr": 6.49,
      "amount": 31000,
      "termMonths": 60
    },
    "scoreBand": "prime",
    "dtiPct": 11,
    "ltvPct": 103,
    "policyBasis": [
      "score 768 in the prime band",
      "DTI within the maximum",
      "LTV within the maximum"
    ],
    "factors": [
      "strong credit score",
      "low revolving utilization",
      "clean payment history"
    ],
    "confidence": 0.96
  }
}

The contract

What it takes, does, and returns

Give it
  • Decision · Application
  • Decision · Product
  • Decision · Decision
  • Decision · Terms
  • Decision · Score band
  • Decision · Dti pct
  • Decision · Ltv pct
  • Decision · Policy basis
  • Decision · Factors
  • Decision · Confidence
It does
  • Get applicationget_application
  • Get credit reportget_credit_report
  • Get policyget_policy
  • Find similarfind_similar
  • Record assessmentcommitrecord_assessment
It returns · Rating
  • Pass
  • Findings
  • Fail

How it's checked

Checked against golden cases

3golden cases3baseline
  • L1-clean

    prime approve, within policy, factors support it → pass

  • L2-supported

    decline rests on hard policy fails (score below min, LTV over max) → sound; pass, minor findings acceptable

  • L11-inconsistent

    within-policy near-prime file declined with no hard basis; similarly-situated L12 was approved → findings/fail

Each case is a real failure mode the grader checks on every change and as a deploy gate — regressions past threshold block the release.

Briefing

Briefing

  • Second-line audit of a committed credit decision in the spirit of SR 11-7: tests whether the decision made is defensible, without re-underwriting the file.
  • Checks consistency against policy and against similarly-situated files decided before — on credit merit only, never protected attributes.
  • Tests whether the stated factors genuinely support the outcome; a decline resting on factors that do not fail policy is a finding.
  • Treats deviations from policy as overrides needing documented justification; a clean decision passes, because inventing issues is itself a failure of the audit.
  • Rates pass, findings, or fail, naming the comparator or factor behind anything below pass.

Where it stands in the operation