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.
Use a paired review matrix
| Area | Seller prepares | Buyer tests |
|---|---|---|
| Population | Eligibility, exclusions, count, balances, cutoff | Whether the pool matches the indication or bid |
| Data | Tape, dictionary, source reports, reconciliation | Duplicates, chronology, nulls, and consistency |
| Ownership and documents | Agreements, assignments, custody and document index | The support for the rights and remedies proposed |
| Performance | Payment, recovery, modification, and placement history | Relevant cohorts, prior activity, and modeling assumptions |
| Legal and status | Dispute, bankruptcy, litigation, restriction, and complaint records | Eligibility, required advice, costs, and operating limits |
| Transfer | Delivery plan, servicing arrangements, notices, post-cutoff payments | Boarding capability and unresolved responsibilities |
Scroll horizontally to read the full table.
Sample with a purpose
Choose a sample that addresses the portfolio’s risks rather than assuming one percentage is sufficient. Cover material segments and known exception groups. Record the selection method, evidence reviewed, findings, and what would require expanded testing.
Reconcile an account’s tape fields to the underlying contract, servicing record, payment history, and other relevant evidence. A high document-availability percentage does not demonstrate that the documents are accurate, complete, or usable.
Turn findings into decisions
Each material issue needs an affected population, balance impact, owner, due date, and proposed treatment. Possible responses include correction, additional evidence, exclusion, revised economics, a contractual remedy, or a decision not to proceed.
Keep the buyer question log and approved responses together. A change to eligibility or balance definitions should trigger a controlled update for affected participants.
Carry diligence through settlement
Before final approval, reconcile the delivered pool, purchase-price calculation, documents, data transfer, servicing responsibilities, and open issues. Use the full seller readiness checklist and buyer-diligence preparation guide for supporting workstreams.
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.