Global Debt Registry is the asset certainty company for the online lending sector. As we’re in regular communication with the players in the lending space, we know the types of questions that may come up and have detailed some of these below. Please reach out anytime with questions about how we’re re-defining due diligence standards for lending.
Who is Global Debt Registry (GDR) and what do we do?
A. GDR is a financial technology company providing asset certainty solutions to investors in the Online Lending ecosystem. These due diligence services for investors include external independent loan data integrity validation, collateral and ownership registries. The Registry helps the industry track loan ownership, loan pledges, and loan servicing rights.
Who does GDR work for? Who pays GDR?
A. GDR provides loan level digital due diligence services for the investment community, both whole loan investors and Warehouse Lenders to enable greater asset certainty.
How much does it cost?
A. The cost is driven by the volume of accounts and the range of due diligence services provided, including external databases utilized. Click here to contact our team.
What is the benefit to Warehouse Lenders?
A. GDR helps Warehouse Lenders reduce the risks associated with incorrect or double pledging of accounts as collateral, as well increase assurance of the underlying loans through independent, external loan due diligence.
What is the benefit to Investors?
A. GDR provides due diligence services to investors to ensure confidence in the assets they purchase by independently validating loan data with trusted external sources and with certainty in their ownership rights. We create and track loan-level chain of title to support secondary market sales, reinforce downstream collectability and to protect against double selling. Finally, we provide safe and secure access to critical loan information to enable independent analytics so investors can maximize value of loan assets over time.
What is the benefit to Online Lenders?
A. GDR supports the safe growth of the MPL industry and helps Online Lenders attract and retain more mature, permanent capital to participate by providing them with GDR’s greater asset certainty. In addition, GDR specifically addresses the PII risks that the MPL holds, by providing a single secure ‘clearing house’ of personal information.
What is the benefit to Ratings Agencies and the Securitization Market?
A. Increased certainty of underlying loans improves investor confidence and reduces ratings agency risk in rating securitizations in this space. Dodd Frank has dramatically improved the loan level diligence of Mortgage Backed Securities and there is an opportunity to bring similar transparency to Marketplace Lending securitizations. In a new market with many new companies, reps and warranties may not be enough. GDR ensures that loans are fully vetted independently providing Rating Agencies with much greater certainty that the loans underlying rated securities are accurately represented.
How is this different from the services traditionally performed by my current verification agent?
A. Traditional verification compares a sample of loan agreements to a loan tape, both provided by the same source, the Online Lender. This model was developed for paper contracts and doesn’t transfer well into the digital data centric marketplace loans. Even more important is that the verification process lacks appropriate independence. It is important to be validating the underlying data with trusted independent external data sources. Online Lending requires a new governance model, GDR provides it.
How secure is my data?
A. As bankers and consumer lenders, the team at GDR has extensive experience in managing sensitive consumer personally identifiable information (PII). GDR has more than 10 years of experience in safely managing credit card information for the accounts receivables market. GDR meets the highest standards of independent certification including PCI DSS, SOC1/SOC2 and ISO 27002.
Does GDR require a specific data format before we submit data?
A. No, our clients do not need to do any data manipulation or standardization. GDR can accommodate a wide variety of data types and structures.
What technical integration is required? How do I get my data to GDR?
A. No technical integration is required. Our clients typically provide a data file by secure file transfer protocol (SFTP). We can pull from your SFTP site or you can upload to ours, whichever is easier.
Who provides data to GDR for the purpose of validation?
A. The investor provides a list of accounts without PII to GDR. Then the Online Lender provides the same accounts with accompanying PII to GDR for validation.
What are your external data sources you validate with?
A. GDR works with a variety of well known trusted third party data vendors that can be brought in to address specific client program goals.
What is the output? How do I get access the GDR services?
A. The client has access to a secure online application with customizable dashboard, flexible reporting and export options.
How does GDR handle variances in loan data?
A. GDR provides the tools for the relevant parties to understand, review and agree on how to handle each individual variance. Some variances may be acceptable to investors, others not.
How does GDR work with document storage companies, sometimes referred to as “eVaults?”
A. GDR can work with existing eVaults to validate data and documents to reduce risk and strengthen the chain of title. GDR can also record the document vault details on the chain of title to ensure each loan record set is complete and compliant.
How does GDR work with Online Lending analytics and reporting firms?
A. GDR can integrate our loan level due diligence reporting into your ongoing analytics reporting, so investors have full confidence in the loan data integrity they are analyzing.