The 2026 Loan Tape Protocol
In the secondary debt market, data is not just information; it is the asset itself. A portfolio of $50 Million in face value can trade at 8 cents or 2 cents depending entirely on the integrity of the Loan Tape.
Institutional buyers—Family Offices, Private Debt Funds, and Litigation Finance groups—do not buy "stories." They buy data. If your loan tape is disorganized, missing fields, or fails debt portfolio due diligence, two things happen:
- The "Messy Data" Discount: Buyers automatically shave 15-20% off the price to account for the risk of missing documentation.
- Transaction Failure: The deal dies in underwriting because the buyer cannot verify the assets.
At Fitzgerald Advisors, we mandate a strict data standard for all clients. Whether you are executing a Fintech Divestiture or selling Distressed Commercial Debt, this is the protocol for preparing a sale-ready loan tape.
1. The "Golden 15" Data Fields
While a full loan tape may contain 100+ columns, institutional buyers look for the "Golden 15" first. If these are missing or formatted incorrectly, the portfolio is considered "Toxic."
| Data Category | Critical Fields | Why It Matters |
|---|---|---|
| Account Level | Original Account #, Current Balance, Charge-Off Date | Establishes the "Vintage" and legal status of the debt. |
| Consumer PII | First/Last Name, SSN (Masked), Last Known Address | Required for skip tracing and credit bureau reporting. |
| Origination | Original Loan Amount, Interest Rate, Origination Date | Proves the validity of the debt and helps calculate yield. |
| Payment Behavior | Last Payment Date, Last Payment Amount, Total Paid | The single biggest predictor of future recovery performance. |
2. The "Media Chain" Audit
A spreadsheet is not proof of debt. To pass NPL data requirements, you must verify the existence of the "Media"—the digital or physical documents that back up the loan.
For Mortgage Note sales, this means the original wet-ink Promissory Note and recorded Deed of Trust. For BNPL portfolios, this means a verifiable digital signature hash and the T&C agreement accepted at checkout.
3. Stratification & Segmentation
Do not sell a "Mixed Bag." Sophisticated buyers have specific mandates. One buyer wants "Fresh" charge-offs (0-6 months); another wants "Warehouse" paper (2+ years). Mixing them dilutes the value of the fresh paper.
When learning how to prepare a loan tape, you must stratify the file by:
- Vintage: Group accounts by the quarter they charged off.
- State/Geography: Separate judicial vs. non-judicial states (crucial for Judgment Liquidation).
- Balance Band: Group small balances (<$500) separate from large balances (>$5k).
4. The "Compliance Flag" Column
In the era of Reg F, you must disclose the status of the account. Hiding this data is fraud.
Your tape must include a "Status" column flagging:
- Bankruptcies: (Chapter 7 or 13)
- Deceased: (Scrubbed via SSDI)
- Disputes: (Any active consumer disputes)
- Litigation: (Is the account already with a legal firm?)
The Verdict: Clean Data = Premium Pricing
The spread between a "Clean" tape and a "Dirty" tape can be 30-40% of the purchase price.
Institutional buyers will pay a premium for data they trust. They will discount data they have to scrub themselves.
Is Your Data Ready for Market?
Don't risk a failed trade due to bad formatting. Run your loan tape through our Debt Catalyst™ engine for a forensic data audit and valuation.
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