session #60 financial institution scorecards jerry wallace ben chiu
TRANSCRIPT
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Session #60
Financial Institution Scorecards
Jerry WallaceBen Chiu
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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/attachments/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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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: [email protected]• Email: [email protected]