Initial Vetting Package of a Third Party
Understand what key information is accurate and current on your vendor.
When you contract with a third party, you become responsible for any risk posed by their activities. Therefore, the first step in every new relationship should be to do the necessary background checks and research to know your vendor, ensure they meet regulatory requirements and are protecting your most valuable asset, your reputation.
We research, collect, review and verify your vendor's key information and that it's all accurate and up-to-date. We provide a comprehensive package with a summarization of ﬁndings.
Comprehensive package to put on file
Would you hire a new employee without a proper background check? Chances are you wouldn’t. This easy-to-read report serves as your vendor background check. If there are any skeletons in the closet, we can help you find them.
Summarization of findings
You’ll receive a concise summary for each package item confirming whether the information was: satisfactory, of concern and needs further investigation, either unavailable or could not be verified.
Start your vendor relationship confident
Know that the vendor has the necessary preliminary qualification before selecting or signing a contract (or deciding to continue business with them). Go into the vendor relationship with the best outlook as possible.
What It Includes
Our Initial Vetting Package of a Third Party Includes:
- A Secretary of State check
- Complaint research
- OFAC check
- A D&B report for credit, trade and payment history data
- Tax ID #
- Articles of Incorporation/business license verification
- Negative news search
Not All Vendors Are Equal:
Venminder’s experts have determined that Closing Agents require specific oversight and research before signing the contract; therefore, we offer a separate Closing Agent Specific Initial Vetting Package of a Third Party that includes:
- Articles of Incorporation
- Closing Agent Wire Instructions
- OFAC, SOS, FHFA Suspended Counterparty, HUD, Business License and Attorney License check
- Closing Protection Letter
- Email IP/public or private
- Policy and Procedures
- Certificate of Insurance
- Title Insurance Verification
- American Land Title Association Best Practices ID #
- Better Business Bureau
- Proof of hiring policies/background checks on their employees
- BBB Data
- SEC Action Check (SALI)
Why It's Important
Vetting your vendors is an important part of your due diligence. You should be vetting a vendor regardless of risk level because inherent risk (the initial risk impression) is never equivalent to zero. A reputational risk is posed whether it’s a critical technology vendor or a non-critical vendor. Having no due diligence on file during the vetting process is very risky and probably won’t pass muster with your regulator.
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Initial Vetting Package of a Third Party Sample
Our team of due diligence experts will do all the research, collect the appropriate documentation and verify accuracy then provide you with an all-inclusive report summarizing our findings in an easy-to-read and quickly searchable layout. Download a sample to see this type of report.