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

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

3. 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. 4 Data Mart Training Tools Online Training Available –http://www.fp.ed.gov/fp/attac hments/fms_data_nslds/intro. htm

5. 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. 6 Process for Refining Scorecards Power Users Group Bi-weekly meetings FPDMHelp@ed.gov

7. 7 Measuring Performance Using Scorecards to Measure Performance

8. 8 Sample GA Scorecard

9. 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. 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. 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. 12 GA Performance Indicators Rehabilitation Collections

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

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

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

16. 16 Sample Lender Scorecard

17. 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. 18 Lender Performance Indicators Cohort Default Rate Change in Loan Status Purchases Sales Capitalized Interest Voids Program Review Results

19. 19 Lender Performance Indicators ED 799 Late

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

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

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

23. 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.govJerry.Wallace@ed.gov Email: Ben.Chiu@ed.govBen.Chiu@ed.gov