1 The information provided in this document is strictly private
and confidential. This document may not be made available, in whole
of in part, without the prior written consent of MeasureOne LLC
May, 2013 Hub for Student Loan Data Competitive Advantage in
Sharing Data with Investors
Slide 2
2 The information provided in this document is strictly private
and confidential. This document may not be made available, in whole
of in part, without the prior written consent of MeasureOne LLC
Outline of the Presentation Introduction to MeasureOne and myself
What is the Dig Deal with Providing Investors with Loan Level Data
What are the trends A Case Study Q and A
Slide 3
3 The information provided in this document is strictly private
and confidential. This document may not be made available, in whole
of in part, without the prior written consent of MeasureOne LLC
What are MeasureOnes to Qualifications? Led by Founder and CEO Dan
Feshbach Created the LoanPerformance database and invented data
sharing in the mortgage space Grew from 5 charter members
contributing 1 million loans to every major lender in mortgage,
tracking 50 million payments a month 20+ years of experience in
building industry wide databases: Operating a neutral third party
data hub Handling sensitive data Managing questions, issues, and
feedback regarding data content and interpretation Providing data
to investors, dealers, rating agencies and regulators
Slide 4
4 The information provided in this document is strictly private
and confidential. This document may not be made available, in whole
of in part, without the prior written consent of MeasureOne LLC
Experienced Team of Student Loan Data and Capital Markets
Professionals Director Capital Markets and Products CEO Dan
Feshbach 25+ years experience building cooperative business
information databases Founder and former CEO, LoanPerformance, the
leading source of loan level information on mortgage loan
performance Dana Arvidson 8 year tenure at First Marblehead Head of
equity and debt investor relations Met with hundreds of PSLABS
investors Deep knowledge of investor data and analytics
requirements Director of Data and Analytics Rushali Parikh Worked
on Student Loan ABS originations at Deutsche Bank in New York
Involved in new client pitches, rating process, preparing offering
documents, structuring cashflows, addressing investor concerns
Collateral analysis of loans underlying student loan deals Student
Loan Ratings Expert Andrea Murad Former Senior Director at Fitch
Ratings Over 10 years experience in student loan ratings Developed
criteria for new FFELP and Private student loan issuances Rated
hundreds of deals Authored articles and special reports for Fitch
Ratings
Slide 5
5 The information provided in this document is strictly private
and confidential. This document may not be made available, in whole
of in part, without the prior written consent of MeasureOne LLC
What We Do - Platform for analyzing student loan Securities and
Whole Loans Data and Metric Standardization Investor and Rating
Agency support and communication services Transaction support -
facilitate analysis of the sale of securities and whole loans:
Dashboards; Bond Analytics; Data Room; Support Services Turnkey
Collateral and Bond Analytics Capabilities
Slide 6
6 The information provided in this document is strictly private
and confidential. This document may not be made available, in whole
of in part, without the prior written consent of MeasureOne LLC The
Trends in Loan Level Data Disclosure Investor Driven Experience
during the mortgage meltdown Investor drive to independently
analyze security performance in house Rating agency missteps /
failure Regulatory Driven Reg AB started it OCC and Federal Reserve
Loan Level Databases Reg AB ii is coming Fannie and Freddie Loan
Level Releases on government guaranteed Opportunity to take a
leadership position Competition Driven Competition with mortgage
and other complex asset classes Business requirements most
companies even the biggest are data poor in something Mortgage,
Credit Card, Small Business, Auto data cooperatives
Slide 7
7 The information provided in this document is strictly private
and confidential. This document may not be made available, in whole
of in part, without the prior written consent of MeasureOne LLC
Student Loans: More Complex Credit and Cashflow Risk than Mortgage
Long weighted-average life Borrowers with little-to-no credit
history Dizzying set of factors affect the timing and absolute
level of cash flows Borrower benefits, loss mitigation Investors
express universal frustration with no central, standardized data
repository Limits investor base size impact new issuance and
trading
Slide 8
8 The information provided in this document is strictly private
and confidential. This document may not be made available, in whole
of in part, without the prior written consent of MeasureOne LLC
What are your data assets? Unstructured Data Web and mobile
customer interactions Email Chat Text Call Center interactions IVR
Call center notes Social media Data Structured Data Lender/Issuer
Loan Level Application Denied Approved Underwriting files Servicing
CRM Marketing Data Enhanced Data Credit Bureau Data, Utilities data
Employment Data There are also Data Assets that you have access
to
Slide 9
9 The information provided in this document is strictly private
and confidential. This document may not be made available, in whole
of in part, without the prior written consent of MeasureOne LLC
Credit Community Investment Banks Lending Community Lending
Community Government Education Sector Education Sector Who cares
about Student Loan Performance Data? Investors Loan Buyers Banks,
Credit Union Sales and Trading Secondary Trading Rating Agencies
Investment Banking Syndicate Desk Risk Management Servicers
Collectors Servicers Collectors Lenders Issuers Lenders Issuers
Bond Insurers Warehouse Lending Whole Loan Trading Departments of
Education Departments of Education Consumer Finance Protection B
Consumer Finance Protection B Congress, Legislatures Federal
Reserve, OCC, FDIC, Students Colleges and Universities
Slide 10
10 The information provided in this document is strictly
private and confidential. This document may not be made available,
in whole of in part, without the prior written consent of
MeasureOne LLC Core Issues Limiting Investor Participation in the
Market The time cost of access of the limited data available keeps
investors from wanting to get up to speed on the asset class
Accessibility Inconsistently Calculated Metrics and Content Data
scattered across 40+ websites Limited research coverage Lack of up
to date rep lines Lack of loan level data to analyze performance
Key metrics including Net WAC, CPR, and CDR often unavailable
Calculated differently by each issuer
Slide 11
11 The information provided in this document is strictly
private and confidential. This document may not be made available,
in whole of in part, without the prior written consent of
MeasureOne LLC What Loan Level Data Do Investors Care About?
Performance Information Delinquency (30,60,90 Days past Due)
Default Claim and Loss Prepayment (Consolidation Driven, Borrower
Driven, Default Driven) Payment Plan Utilization (IBR, Graduated
Repayment) Deferment/Forbearance/Deferment Utilization (Total, time
in status, Number of Uses) In-school/Grace/drop out Status (Total,
Time Remaining) Collections (Amount Collected, aging) Recoveries
Geographic Information Product Information Product type
(consolidation) Loan Program (PLUS, Subsidized Stafford,
Unsubsidized Stafford School Information Major (Business Science
Liberal arts, Health Science In school/Grace/Drop-out Status)
Reported Year in School School Type (For profit, Public, Private, 2
yr, 4 yr) Credit Information #,$ student loans #, $ credit card,
auto, mortgage and other debt Credit Score
Slide 12
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private and confidential. This document may not be made available,
in whole of in part, without the prior written consent of
MeasureOne LLC Case Study Private Student Loan Portfolio Sale
MeasureOnes Role Hired by the seller to be deal data manager Deal
Data Manager Provided secure data room for documents related to the
deal Reporting and Analysis Platform to enable investors to enable
investors to quantify and project performance and create rep lines
Loan Level Files for investors who wanted to build models or
conduct analysis in house 24 - 7 Support Number of data users 5
Dealers 25 investors 50 + licenses to access the MeasureOnes
Analysis Platform
Slide 13
13 The information provided in this document is strictly
private and confidential. This document may not be made available,
in whole of in part, without the prior written consent of
MeasureOne LLC Student Loan Analysis Platform Predefined
Dashboards: Investors Get Up to Speed Quickly Overview of the
Portfolio with Easy Drill Down
Slide 14
14 The information provided in this document is strictly
private and confidential. This document may not be made available,
in whole of in part, without the prior written consent of
MeasureOne LLC Turnkey analytics: roll rate analysis with one
click
Slide 15
15 The information provided in this document is strictly
private and confidential. This document may not be made available,
in whole of in part, without the prior written consent of
MeasureOne LLC Example of an investor email data request
Slide 16
16 The information provided in this document is strictly
private and confidential. This document may not be made available,
in whole of in part, without the prior written consent of
MeasureOne LLC What Data did Investors Request: Some Examples Roll
rates 1M, 3M, 6M Roll rates, loan count and balance moving between
statuses and between delinquency buckets Detailed statistics re
modifications, forebearance, deferrment, and loan modifications
Payment Modification Grant Rate Detailed Prepayments break outs
Scheduled payment, Negative Amortization, Consolidation, Borrower
Prepayment, Borrower Curtailment Flexible repline creation
Slide 17
17 The information provided in this document is strictly
private and confidential. This document may not be made available,
in whole of in part, without the prior written consent of
MeasureOne LLC Issues Lenders and Issuers have in Sharing Loan
Level Data Are lenders giving up competitive advantage by enabling
lenders to create origination scores? What about consumer
protections to privacy? Do investors have the ability to process
the data? Will data access increase investor questions and thus
investors relations costs?
Slide 18
18 The information provided in this document is strictly
private and confidential. This document may not be made available,
in whole of in part, without the prior written consent of
MeasureOne LLC You can control your data Array of tools to limit
distribution and use as appropriate Customized content for
different verticals: Investors, Rating Agencies, Prospective Lender
Customers Complete control over nature, frequency, fields of data
released Contractual: NDAs, Limitations on Use, Matching to
External Limitations or Prohibition Technical: Download/Export
Limitations, Logging, Field/Pool Level Filters
Slide 19
19 The information provided in this document is strictly
private and confidential. This document may not be made available,
in whole of in part, without the prior written consent of
MeasureOne LLC What is in it for issuers and lenders? More buyers
for your bonds and at better spreads Increase the groups
competitiveness in the new private loan market Every one is data
poor in something Improve servicing performance Reports and
information to support with the policy process and discussions with
DOE, Congress and State legislatures Simplify your IR function by
referring investors to MeasureOne platform Be prepared for Reg AB
II
Slide 20
20 The information provided in this document is strictly
private and confidential. This document may not be made available,
in whole of in part, without the prior written consent of
MeasureOne LLC Data Transparency is Coming Embrace it for
Competitive Advantage Dan Feshbach [email protected] 415-971-1977
Data Transparency is Coming Embrace it for Competitive Advantage
Dan Feshbach [email protected] 415-971-1977