Dentons US LLP

Developments & Regulatory Issues in Loan Level Data Reporting

STUDENT LOAN LEGAL MEETINGEDUCATION FINANCE COUNCILNATIONAL COUNCIL OF HIGHER EDUCATION RESOURCES

Moderator:

Lauris G. L. Rall, PartnerDentons US LLPNew York, New York

August 5, 2013

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THE STUDENT LOAN DATA LANDSCAPE

INCREASING GOVERNMENT FOCUS ON LOAN LEVEL DATA

JULY 2012 CFPB REPORT TO CONGRESS ON “PRIVATE STUDENT LOANS” WAS BASED ON COLLECTED DATA OF 5,456,689 UNIQUE RECORDS AND 3,478,146 DISTINCT BORROWER - LENDER PAIRS - 9 MAJOR LENDERS PROVIDED LOAN LEVEL DATA

THE CFPB REPORT INCLUDED SUBSTANTIAL ANALYSES BASED ON THE LOAN LEVEL DATA COLLECTED AND PRESENTED RECOMMENDATIONS TO CONGRESS IN PART ON THAT DATA

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PROPOSED FEDERAL REGULATION OF LOAN LEVEL DATA IN STUDENT LOAN

SEC REG AB II

RULE 193 - ISSUER REPORT ON ASSETS USED IN ABS - POSSIBLE USE OF THIRD PARTY DILIGENCE COMPANY - REQUIRED DISCLOSURES IN OFFERING DOCUMENTS

NEW RULES WILL SIGNIFICANTLY INCREASE THE INFORMATION FOR THE STUDENT LOANS INCLUDED IN AN ASSET POOL THAT COLLATERALIZES STUDENT LOAN ABS, BOTH AT THE TIME OF THE OFFERING AND ON AN ONGOING BASIS

ISSUERS WILL BE REQUIRED TO PROVIDE STANDARDIZED ASSET LEVEL DATA AS REQUIRED UNDER A NEW SCHEDULE L TO REG AB - 28 ITEMS RANGING FROM PAYMENT STATUS TO SCHOOL TYPE TO BORROWER FICOS AND INCOME VERIFICATION

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ASSEMBLY AND FILING OF STUDENT LOAN ABS LOAN LEVEL DATA

ISSUERS WILL NEED TO PREPARE DATA FOR FILING IN “EXTENSIBLE MARKUP LANGUAGE” AND MAKE AN SEC EDGAR FILING

INVESTORS WILL BE ABLE TO DOWNLOAD DATA FROM EDGAR FILINGS INTO SPREADSHEETS FOR ANALYSIS

ENHANCED POOL DATA WILL ALSO BE REQUIRED - INCLUDING LOANS ORIGINATED UNDER EXCEPTIONS TO UNDERWRITING CRITERIA AND LOANS THAT HAVE BEEN SUBJECT TO MODIFICATIONS

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TIMELINE FOR ADOPTION OF LOAN LEVEL DATA REQUIREMENTS

ORIGINAL AB II PROPOSED REGS ISSUED IN 2010

SEC RE-PROPOSED AB II WITH DODD-FRANK “MODIFICATIONS” AND REQUEST FOR ADDITIONAL COMMENTARY IN 2011 - FOCUS ON CONSUMER BORROWER PRIVACY

SUBSTANTIAL INDUSTRY COMMENTARY IN 2010 - 2012 - POSITIONS ADVOCATING USE OF “GROUPED” ACCOUNT DATA OR “REP LINES”

LIKELIHOOD OF PROMULGATION OF REG AB II IN 2013 OR 2014

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