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Common Review Initiative Update

Common Review Initiative Update. Boston Guaranty Agency Summit August 31, 2005. CRI Concept. Guarantors are combining resources to conduct a single review of large lenders and servicers

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Common Review Initiative Update

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  1. Common Review Initiative Update Boston Guaranty Agency Summit August 31, 2005

  2. CRI Concept • Guarantors are combining resources to conduct a single review of large lenders and servicers • These CRI reviews will go toward meeting the requirements of 682.410(c)(1) for each CRI-participating guarantor

  3. Significant Events • By the end of the CRI pilot, review teams will have conducted 11 CRI reviews • On-site visits completed at Suntech, MOHELA, Wells Fargo, AES, ACS, Edfinancial, KHESLC, Nelnet, SLMA, Educaid • Citicorp visit scheduled for 9/26

  4. Significant Events • One new participant - Georgia • Non-participants currently are: • Alaska • CSAC/EdFund • New Hampshire • North Carolina

  5. Significant Events • New leadership for current and next biennium • Rick Buckingham, USA Funds Chair through 2005 • Becky Collins, Student Loan Guarantee Foundation of Arkansas Chair for 2006-2007

  6. Significant Events • Successful reviewer training session • October 2004 meeting in Texas • Approximately 60 attendees • Another training session scheduled for October 25-26, 2005

  7. Significant Events • Change in review scheduling policy • Not all guarantors using same standards for review selection • Agreed to selection based on previous year’s volume as of 9/30

  8. Significant Events • Creation of quality assurance group • Co-chaired by Greg Schweitzer (Great Lakes) and Bernie Girata (AES/PHEAA) • Conducted by two reviewers NOT part of review team • Performing analyses of completed reviews to ensure proper documentation • Before reports issued, reviewing workpapers and reports for consistency and quality

  9. Significant Events

  10. Significant Events • Planning for CRI’s future • Currently a pilot program approved through 12/31/2005 • Met with ED to discuss CRI’s future • Delivering request for permanence today

  11. CRI Goals and Report Card • Improve the quality of lender program reviews conducted by guarantors (including non-CRI reviews) • Reduce redundancy of reviews by guarantors

  12. Report Card on Quality • Attribute testing • Statistically valid sampling • Continual tweaking of workpapers • Six reviewers instead of 1-2 • Consistent documentation • Reviewer training • Quality review process

  13. Report Card on Redundancy • Can look at this two ways • If all guarantors had conducted servicer reviews, CRI eliminated 125 guarantor reviews that would have been conducted • 11 CRI reviews covered 248 reviews required by 682.410(c), eliminating 237 individual lender reviews

  14. Report Card on Redundancy • Average cost of CRI review = $5,783 (6 reviewers) • Average cost of non-CRI review = $964 (1 reviewer) • Guarantor savings • Servicer reviews - $67,491 • All reviews - $175,459

  15. Questions??

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