1. Session #60 Financial Institution Scorecards Jerry Wallace Ben Chiu

2. Financial Institution Scorecards • What are scorecards? • Scorecard training tools • Process for refining scorecards • Using scorecards to measure performance

3. What are Scorecards? • A Risk Management tool • Improve Program Integrity • Improve Program Compliance • Available to GA and lender via FPDM • http://www.fp.ed.gov/PORTALSWebApp/fp/dmart.jsp

4. Data Mart Training Tools • Online Training Available • http://www.fp.ed.gov/fp/attachments/fms_data_nslds/intro.htm

5. Process for Refining Scorecards • 2001 – FPDM released for internal use • 2002 – GA access to FPDM • 2003 - Lender Scorecard Developed • 2004 – GA Scorecard Developed • 2007 – Lender access to FPDM

6. Process for Refining Scorecards • Power Users Group • Bi-weekly meetings • FPDMHelp@ed.gov

7. Measuring Performance Using Scorecards to Measure Performance

8. Sample GA Scorecard

9. GA Performance Indicators • Change in Federal Funds • Minimum Reserve Ratio • Cash Liquidity • Change in Operating Funds • Projected Minimum Reserve Level • Cohort Default Rate (Data based on two fiscal years)

10. GA Performance Indicators • Percentage of Change in Default Portfolio • Portfolio Characteristics • Rate of Reinsurance • Account Maintenance Comparison • Total Collections on Defaulted Loans Current Year

11. GA Performance Indicators • History of Total Collections on Defaulted Loans • Market Share • Change in Loan Status • Edit Pass Rate • FFEL Collections • Direct Collection Activities

12. GA Performance Indicators • Rehabilitation Collections

13. Key GA Indicators • Reserve Levels • Minimum Reserve Levels • Cash Liquidity

14. Key GA Indicators • Claims and Cohort Rate • Percent Change in Default Portfolio • Portfolio Characteristics

15. Key GA Indicators • Collections • Direct Collection Activities • History of Total Collections on Defaulted Loans

16. Sample Lender Scorecard

17. Lender Performance Indicators • Portfolio Characteristics • Default Claim Rate • Change in Default Claim Rate • Delinquency Rate • Change in Delinquency Rate • Origination Fee Variance • Interest Adjustments

18. Lender Performance Indicators • Cohort Default Rate • Change in Loan Status • Purchases • Sales • Capitalized Interest • Voids • Program Review Results

19. Lender Performance Indicators • ED 799 Late

20. Key Lender Indicators • Portfolio Characteristics • Purchases • Sales

21. Key Lender Indicators • Default Rate • Default Claim Rate • Change in Default Claim Rate

22. Key Lender Indicators • Adjustments • Origination Fee Variance • Interest Adjustments • ED 799 Late

23. Contact Information We appreciate your feedback and comments. We can be reached at: • Phone: Jerry Wallace (214) 661-9515 • Phone: Ben Chiu (415) 486-5623 • Email: Jerry.Wallace@ed.gov • Email: Ben.Chiu@ed.gov