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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