Session #60

Financial Institution Scorecards Jerry Wallace Ben Chiu

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

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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

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

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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
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Process for Refining Scorecards
• Power Users Group
•Bi-weekly meetings

• FPDMHelp@ed.gov

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Measuring Performance

Using Scorecards to Measure Performance

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Sample GA Scorecard

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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)
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GA Performance Indicators
• Percentage of Change in Default Portfolio • Portfolio Characteristics • Rate of Reinsurance • Account Maintenance Comparison • Total Collections on Defaulted Loans Current Year
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GA Performance Indicators
• History of Total Collections on Defaulted Loans • Market Share • Change in Loan Status • Edit Pass Rate • FFEL Collections • Direct Collection Activities
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GA Performance Indicators
• Rehabilitation Collections

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Key GA Indicators
• Reserve Levels – Minimum Reserve Levels – Cash Liquidity

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

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

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Sample Lender Scorecard

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Lender Performance Indicators • Portfolio Characteristics • Default Claim Rate • Change in Default Claim Rate • Delinquency Rate • Change in Delinquency Rate • Origination Fee Variance • Interest Adjustments
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Lender Performance Indicators • Cohort Default Rate • Change in Loan Status • Purchases • Sales • Capitalized Interest • Voids • Program Review Results
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Lender Performance Indicators • ED 799 Late

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Key Lender Indicators
• Portfolio Characteristics – Purchases – Sales

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Key Lender Indicators
• Default Rate – Default Claim Rate – Change in Default Claim Rate

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

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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

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