Key Takeaways
- Define the asset, objective, scope, and decision timeline before outreach.
- Keep data, documentation, ownership, servicing, and material exceptions connected.
- Compare complete economics and execution terms rather than a headline number alone.
- Document responsibilities, transfer controls, and the next review step.
Run eight distinct controls
| Control | Example test | Record the outcome |
|---|---|---|
| Uniqueness | Repeated account IDs or duplicate asset records | Duplicates, affected balances, and approved resolution |
| Completeness | Missing required or conditionally required fields | Missingness by field and material segment |
| Validity | Dates, currencies, allowed codes, and numeric formats | Invalid values and source-system mapping |
| Reconciliation | Counts, principal, interest, fees, and totals against approved sources | Source, cutoff, difference, and explanation |
| Referential integrity | Tape IDs link to documents and servicing records | Unmatched or incorrectly linked records |
| Chronology | Origination, payment, charge-off, and cutoff dates are interpretable | Exceptions and legitimate reasons, such as recoveries after charge-off |
| Consistency | Statuses and balances agree across related fields and systems | Conflicts, authoritative source, and remediation |
| Version control | The released file matches the approved population and dictionary | Version, release date, recipients, and change record |
Scroll horizontally to read the full table.
Define business meaning before validation rules
“Current balance” may include different components in different systems. Specify the calculation, source, currency, as-of date, and treatment of adjustments. A numerical field that parses successfully can still represent the wrong economic amount.
Chronology rules also need business context. A payment after charge-off can be a valid recovery. Flag the record for interpretation rather than automatically deleting it.
Make exceptions usable
For each material issue, identify the field, account or segment, affected balance, evidence, owner, and proposed treatment. Distinguish a confirmed negative status from unknown, not checked, and not applicable. Status information should include its source and verification date where relevant.
Release a controlled package
Send the approved tape together with the data dictionary, control totals, document index, and exception log through an authorized process. Limit sensitive fields to what the review stage requires. Material revisions should be explained to affected participants using a versioned change record.
Clean formatting supports review. It does not by itself establish legal eligibility, ownership, or the quality of the underlying evidence.
This page provides general information for institutional and commercial readers. It is not legal, tax, accounting, investment, or transaction-specific advice. Requirements and outcomes depend on the assets, parties, jurisdictions, and agreements. Obtain appropriate professional advice for a proposed transaction.