Post-Sale Reporting Validation For A Large Financial Institution

Challenge: Regulators required validation of post-sale reporting data under the financial institution’s non-performing loan (NPL) sale program. As a result of this requirement, the client needed assistance in conducting a data validation review for its NPL post-sale reporting.

Solution: The client engaged SP Group to conduct a data validation review. For this exercise, SP Group created a sample of loans from selected purchasers in the NPL sales. Once the sample was approved by the client, SP Group worked with each purchaser in the sample to collect the underlying documentation regarding the status of the purchased loans. SP Group leveraged its prior experience in working with loan purchasers to create a secure and user-friendly documentation submission portal. SP Group used its secure internal network infrastructure to perform validation reviews of all documents. Loan-level documentation was analyzed for both accuracy and compliance with the loan sale agreements. SP Group’s flexible database tools provided the client with standardized and ad hoc representations of the analysis. The client gained a thorough understanding of the outcomes of the loans in the sample and the degree of compliance with the loan sale agreement(s). SP Group’s analysis assisted the client in satisfactorily addressing the regulators’ requirement for data validation review.

After a successful initial project, the client re-engaged SP Group in the following year for continuing the data validation reviews.