Challenge: FHFA’s OIG required that FHFA validate the post-sale reporting data under the GSEs non-performing loan (NPL) sale program. As a result of this requirement, Freddie Mac needed assistance in conducting a data validation review for its NPL post-sale reporting.
Solution: Freddie Mac 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 Freddie Mac, 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 Freddie Mac with standardized and ad hoc representations of the analysis. Freddie Mac 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 Freddie Mac in satisfactorily addressing FHFA’s requirement for data validation review.