Director, Model Risk & Validation (Hybrid)

PenFed Credit Union; San Antonio (TX); Hybrid; USD 97,000 - 216,000; Full time

Benefits offered by this job

Annual bonus

Performance-based bonus

Flexible work arrangement

Job summary

PenFed Credit Union is seeking a hybrid Director of Model Risk Management to lead model validation for consumer banking and fraud risk across retail lending and mortgage portfolios. The role focuses on validation, monitoring, and governance of high-stakes models used in executive decisions.

The candidate will oversee independent validation activities, drive advanced modeling practices (including AI/ML), and interact with senior management and governance partners to ensure compliance with SR 26-2

Qualifications

• Minimum seven years of experience in quantitative modeling within a financial institution.
• Experience overseeing validation, testing, monitoring, and documentation of advanced machine learning techniques.
• Strong communication skills with the ability to present to senior management.
• Knowledge of SR 26-2, SR 11-7 regulatory frameworks and governance.
• Experience with Python and open-source tools for model development.

Responsibilities

• Lead and oversee the model validation function, providing independent review and effective challenge of models used for credit and fraud risk management across retail lending and mortgage portfolios.
• Contribute to the development and governance standards for consumer banking models in use at PenFed, leading to more optimal use of models and increased confidence in model outcomes.
• Provide clear and insightful analysis, feedback, and critique of models by way of written and/or oral reports to business units and senior management.
• Perform and lead independent validation of models in use at PenFed, including pre-implementation validations, change reviews, and ongoing monitoring, providing effective challenge to model design, methodology, data, outcomes and performance.
• Maintain effective relationships and communication channels with model users, owners, and governance partners.
• Continually improve and enhance quantitative modeling approaches and methodologies, including agentic AI and advanced machine learning, to promote alignment with industry best practices.
• Provide senior leadership to the department by maintaining awareness of evolving market trends which could impact the efficacy of modeling efforts, and remaining abreast of regulatory developments impacting PenFed's model risk management profile.

Skills

Quantitative modeling

Model risk management

Leadership

Communication

Regulatory knowledge

AI/ML awareness

Education

Bachelor's degree in Finance, Economics, Mathematics or Statistics

Advanced degree (Master's or Ph.D.) in a quantitative field such as Finance, Economics, Mathematics, or Statistics

Tools

Python

Job description

PenFed Credit Union is seeking a hybrid Director of Model Risk Management to lead model validation for consumer banking and fraud risk across retail lending and mortgage portfolios. The role focuses on validation, monitoring, and governance of high-stakes models used in executive decisions.

The candidate will oversee independent validation activities, drive advanced modeling practices (including AI/ML), and interact with senior management and governance partners to ensure compliance with SR 26-2