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Common Review Initiative Update

Review of significant events, participants, leadership changes, training sessions, quality assurance group formation, future planning details, CRI goals, and report card analysis discussed at the CRI Summit on August 31, 2005.

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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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