cuso board meeting agenda august 13 2014 - new … student lending, llc board of managers meeting...

Member Student Lending LLC Board of Managers Meeting Agenda

Wednesday, August 13 2:00pm (eastern) Conference Call

Dial In: 866-870-5651 Conference Code #6385982719

I. Approval of Consent Agenda Items

a. Approve July 9, 2014 Board Meeting Minutes b. Portfolio Performance – July Report c. July Call Center Service Level Stats d. July Financial Statements

II. CUSO Business

a. Margaret Frey – Discussion Visible Equity Reports b. NCUA CUSO Review c. Continued discussion of forgiveness letter for $91,000 Loan Consolidation d. Max loan clarification

Member Student Lending, LLC Board of Managers Meeting

July 9, 2014 Conference Call

Harry called the meeting to order at 2:05 p.m. Board Members Harry Jacobson, Chairman – Pinnacle FCU Mick Olson, Vice Chairman – Topline CU Julie Kreinbring – Alliance Catholic Credit Union (joined at 2:30 pm) Robyn Oresto – Aspire FCU Rich Wendt – AltaOne Federal Credit Union Guests Alice Stevens – Consultant Vince Passione – LendKey Administrator Present Cindy Rashkin – New Jersey Credit Union League Approval of Consent Agenda Harry asked for any comments or changes to the consent agenda. Approval of the June financials was removed and will be discussed at the August meeting. Mick Olson made a motion to approve the Agenda as amended; it was seconded by Rich Wendt. 0 opposed. The following items were approved as presented:

Approve June 11, 2014 Meeting Minutes Portfolio Performance – June Report June Call Center Service Level Stats

CUSO Business a. Potential new CUSO Update – Vince reviewed the PowerPoint (see attached).

Slide 2: Hired Whyte Hirschboek Dudek to make sure the name CUIL was not already taken, drafting the operating agreement and design the governance strategy; they have understanding of NCUA and what future audits may look like. Received a bond proposal from CUNA Mutual Group. Clifton Larson Allen hired as CPA firm. The CUIL office will be co-located in the LendKey, NY office.

Slide 3: Drafted operating agreement and private placement memorandum, getting ready for distribution. The CUSO board will be allowed to preview and look at what has been developed. Scheduling roadshows to Wisconsin to speak with CUNA and some of the larger credit unions. Vince reported as of the meeting, soft commitments have been received from Alliance Catholic Credit Union and P. Gentile from the Massachusetts League pending Board approval.

Slide 4: Counsel recommended the structure presented in the PowerPoint.

Vince will send the board a draft copy of the Operating Agreement and Prospectus and solicit for investment. Next step is deciding the future of the current CUSO after the current lending season.

b. Update on potential new insurance product - Alice met with SWBC, to discuss Travelers

Insurance. Potential ideas include doing a lender paid insurance/group policy or a debt cancellation type of product, offer a forbearance insurance product so if the student had to activate forbearance then the payments would be made out of that insurance coverage rather than tacked onto the end. Alice feels the debt cancellation program would be the best fit in terms of life insurance program. SWBC will go back and put together a proposal for the CUSO within the next 2-3 weeks. SWBC does have a few carriers for default insurance and are in preliminary discussions; they will know something more concrete in the next 2 weeks.

c. Update on amount of participants that have quit the program and are expected to quit – Vince stated the approximate numbers to date are 133 clients have renewed and estimated about 24-30% loss of participants who stated they want to stop originating, top reasons include concentration risk or lack of insurance. The total commitment in both programs is currently $90 million of which $40 is in consolidation and $50 is private student loans.

d. NCUA Audit Update – Alice received an email from Anna Slaughter asking for details on using

the League. Cindy will get more information and report back to Alice. NCUA sent over a list of requested items; Alice prepared a thumb drive of information. The NCUA is willing to move the IT portion of the review to either October or November so that they will not be in the middle of lending season and have stated it will only be 2 IT examiners for a couple of days. Alice shared the questionnaire with Vince and Raymond at LendKey to make them aware of the items that will be reviewed.

e. NCUA introductory meeting - Anna Slaughter would like to set up a meeting with the CUSO

board to introduce themselves and discuss any initial questions. The board agreed to have a conference call on Tuesday, July 22 at 11:00 am eastern time.

f. Billing and collection of fees for the 2014/2015 school year – Harry stated the CUSO is down to

$20,000 in cash; it has been discussed getting the billing in as the agreements come in. Alice spoke to Chrissy and Adrienne, the idea being they would wait until the normal quarterly billing cycles that have been used for new credit unions coming on in terms of billing for July. Alice stated that will not work because the CUSO starts to run short of cash, in terms of the renewal billing they will work to do that as the agreements come in possibly weekly instead of waiting for quarterly cycle preventing the CUSO from running short on cash.

g. Loan portfolio analysis – update on Visible Equity – All board members have received access

passwords from Margaret.

h. Due diligence package update – Additional information on Clifton Larson Allen, R&R, and internal controls review have been posted to the website.

i. Parent Plus loan product – Alice explained this is a government loan that parents can take out to

supplement what the student can borrow without obligating the student. Questions have been brought up about parents interested in consolidating their parent plus loans now that federal

loans are allowed in the CUSO program. Alice asked if this is a product the board is interested in developing, a different product in terms of eligibility than the current consolidation program. LendKey’s attorney is in the process of getting a legal opinion from a student loan expert to say whether this is something that would be prohibited and also to clarify needed disclosures in terms of any features that the borrow would be giving up getting into the CUSO product. The Board agreed to pursue, Alice will send the board additional information.

j. Single borrower maximum loan amount – Alice stated a consolidation loan came through

needing a cosigner and was cosigned. The cosigner came back with another loan application as a borrower. The cosigner qualified by the guidelines, but the 2 loans together exceeded the $150,000 maximum loan amount set for the program. The question was brought up is it a maximum loan amount or maximum borrow amount. The Board agreed it is a $150,000 per borrower amount.

k. Forgiveness letter for $91,000 loan consolidation – Alice received a formal letter from a

parent/co-signer asking a loan for $91,000 be forgiven due to her son passing away. The borrower had a steady job and income. Reliamax will not pay the death claim for consolidation loans if the remaining oblige is still alive. If she defaults Reliamax will pay; however, it will damage her credit. The Board agreed to not forgive the loan.

l. Minimum amount for a consolidation refinance – Alice explained a woman with a $40,000 loan

was granted 6 month forbearance, before the forbearance period ended she asked for a refinance of the loan because her credit score has improved. The reason for the forbearance was she needed money to get married. Alice asked does the board really want to give forbearance for any and all reasons or set some parameters that it has to be a financial hardship. Alice feels parameters need to be set around refinancing as well. Alice will put together some draft suggestions as to how it should be handled, the board agreed to review at next month’s meeting.

m. Financial statement update regarding Clifton Larson Allen audit issues – Robyn will discuss

further with Adrienne Bell and make sure all of the issues have been addressed and resolved from the recent audit.

n. Handling of forbearance in the uninsured program – See item “l”

o. Marketplace discussion – Vince stated LendKey is working on a product that offers more

transparency to loans. A prospective member would have the ability to find a credit union to join and also submit a credit application to obtain what rates and borrower benefits they would see in a loan. Credit unions will only have to pay when someone selects their loan. Board agreed to have LendKey put together a presentation.

p. Schedule meeting date for k12 tuition presentation – Alice explained the program is designed for

someone wanting to finance tuition for a child to go to private school. Alice will show presentation at the August meeting.

Meeting was adjourned at 3:38 p.m.

Call Center ReviewJuly 2014 – Monthly Report

© 2013 LENDKEY, INC. ALL RIGHTS RESERVED. PRIVATE AND CONFIDENTIAL.

Call Center KPIs

2

July

Calls 9782

Abandoned 12

Average Talk Time 4:37

Average Wait Time :01

Average Wait Time/Abandoned :10

% Abandoned 0.12%

% Completed 99.88%

Outbound Calls 3,814

Team Quality Average 91.8%

Emails Answered 2,299

Post Contact Survey Scores

How would you rate the Loan Specialist's knowledge?

4.71

How courteous was the Loan Specialist?

4.82

Overall, how satisfied were you with the interaction?

4.81

3

Post Contact Survey Responses

Sampling of Positive Comments

• My loan specialist was friendly and knew exactly how to help and answer my questions. He was wonderful, I can’t say enough great things about his assistance.

• cuStudentLoans has made my consolidation process much more pleasant.

• I have contacted your loan specialists numerous times over the past two years, while my son was applying for student loans. I have always had courteous, professional associates handling the calls and everyone is always eager to assist with any problem. Job well done!

• Customer service agents are prepared to answer all my questions. They are very nice and make you feel that you are part of their family!

4

Post Contact Survey Opportunities

Opportunities for Improvement

• All calls with negative comments/low scores pulled and reviewed

• We reached out to borrowers to solve and explain issues when needed

• July negative survey responses:

– Several complaints about underwriting guidelines

– Borrower upset with AgFed membership requirements

– Potential borrower unhappy that there are no open field lenders for PSL

5

NCUA CUSO Review of Member Student Lending, LLC July 21, 2014 through August 1, 2014

IT Portion to take place November 2014

CUSO Controls

Owner’s rights to equity are not clearly explained in the Operating Agreement

How are mergers treated in terms of shares

Discrepancy on number of owners

Recommendation of legal determination of treatment of owners.

Owner contact list is outdated

Inconsistencies in policies: Network Agreement mentions audit committee, not expelling credit unions that deny loans is non‐enforcement of the agreement

Recordkeeping

Follow CPA recommendations from the last CUSO audit for adjustments to account payable and receivable, capital investment, R&R invoice doesn’t reflect that half was paid by LendKey, outstanding invoices not reconciled

cuGrad pricing in program manual doesn’t reflect the new diamond tier Lending

Ongoing analysis of projected default rates in conjunction with the ALLL recommendation

TDR treatment should include maximum number of TDRs for life of loan, good faith payments (3?) before re‐aging the due date, aggressive escalated collection if they do not pay the modified payments, TDR accounting provided to participant credit unions

Capitalization of interest – the examiners requested an interpretation for post forbearance interest, but have not received guidance yet. We should request an opinion from our CPA especially since the products are no longer insured.

Housing DTI recommended for co‐borrowers for all products and borrowers also for consolidations

Stress test approvals with rate shocks of 300 to 500 basis point increases. (I say that if we do this we should have a legal opinion that it is equal credit compliant if we intend to deny loans due to the increased rates.) Examiners suggest not exceeding 80% housing DTI with the resulting shocked rates.

School eligibility criteria needs to be determined for future years

Remove forbearance up to 18 months from the credit agreement in case it discourages on‐time payments

Itemization of expenses from school (probably removed due to school proceeds disbursement)

Default reporting by ACS and FICO in future of uninsured products

Seasoning 2009 2010 2011 2012 2013 2014

PSL Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Jul-14 Jul-14 Jul-14 Jul-14 Jul-14 Jul-14

Total Portfolio CUSO CUSO CUSO CUSO CUSO CUSO CUSO CUSO CUSO CUSO CUSO CUSO CUSO CUSO

Count Loans 18,560 18,900 19,039 19,136 19,295 19,401 19,446 1,733 4,004 3,835 4,791 5,046 37

Dollar Loans 194,903,760 196,787,014 197,205,660 197,259,650 197,550,319 197,835,342 197,089,160 14,230,646 38,938,571 37,462,982 49,574,597 56,631,817 250,547

ABI Loans 10,501 10,412 10,358 10,308 10,238 10,197 10,135 8,212 9,725 9,769 10,347 11,223 6,772

ACS / FICO Overall Portfolio - - - - - - - - - - - - -

Count of loans less than 600 4 4 5 5 5 5 5 - - - 2 - 3 -

Dollar of loans less than 600 58,399 58,397 48,893 48,890 48,887 48,885 48,882 - - - 21,382 - 27,500 -

Count of loans greater than 600 and less than 640 62 63 63 63 63 63 63 - - - 18 27 18 -

Dollar of loans greater than 600 and less than 640 607,594 615,780 615,754 615,663 610,659 611,112 611,051 - - - 157,267 295,289 158,495 -

Count of loans greater than 640 and less than 700 2,954 3,010 3,036 3,051 3,072 3,089 3,095 - 203 443 649 955 840 5

Dollar of loans greater than 640 and less than 700 30,315,537 30,714,186 30,814,673 30,883,367 31,003,272 31,178,033 31,115,536 - 1,502,326 4,377,785 6,567,059 9,494,572 9,143,684 30,110

Count of loans equal or greater than 700 15,540 15,823 15,935 16,017 16,155 16,244 16,283 - 1,530 3,561 3,166 3,809 4,185 32

Dollar of loans equal or greater than 700 163,922,230 165,398,652 165,726,340 165,711,730 165,887,500 165,997,311 165,313,692 - 12,728,320 34,560,786 30,717,275 39,784,737 47,302,137 220,437

In School -

Count 12,284 12,520 12,582 12,628 12,733 12,378 12,337 - 204 1399 2096 3735 4866 37

Dollar 140,083,077 142,018,625 142,766,394 142,895,911 143,219,499 139,431,044 138,885,037 - 2,317,162 16,111,201 23,261,429 41,098,427 55,801,214 250,547

Percentage 71.9% 72.2% 72.4% 72.4% 72.5% 70.5% 70.5% 16.3% 41.4% 62.1% 82.9% 98.5% 100.0%

Count - Current (<=29) 12,129 12,442 12,427 12,476 12,571 12,211 12,179 - 199 1359 2057 3687 4840 37

Dollar - Current (<=29) 138,391,356 141,206,586 141,193,663 141,265,773 141,508,045 137,654,146 137,282,457 - 2,244,404 15,681,694 22,871,241 40,698,769 55,535,803 250,547

Percentage $ - Current (<=29) 98.8% 99.4% 98.9% 98.9% 98.8% 98.7% 98.8% 96.9% 97.3% 98.3% 99.0% 99.5% 100.0%

Count - Delinquent (=30 to <=59) 81 31 101 96 95 97 86 - 2 14 22 32 16 0

Dollar - Delinquent (=30 to <=59) 1,013,736 389,116 1,002,078 1,011,431 898,379 1,039,481 870,425 - 31,871 168,671 200,603 265,040 204,240 -

Percentage $ Delinquent (=30 to <=59) 0.72% 0.27% 0.70% 0.71% 0.63% 0.75% 0.63% 1.4% 1.0% 0.9% 0.6% 0.4% 0.0%

Count - Delinquent (=> 60) 74 47 28 56 67 70 72 - 3 26 17 16 10 0

Dollar - Delinquent (=> 60) 677,985 422,923 324,341 618,706 813,075 737,418 732,155 - 40,888 260,836 189,585 134,618 106,228 -

Percentage $ Delinquent (=> 60) 0.5% 0.3% 0.2% 0.4% 0.6% 0.5% 0.5% 1.8% 1.6% 0.8% 0.3% 0.2% 0.0%

Count - Forbearance 17 16 19 18 9 9 14 - 1 2 5 2 4 0

Dollar - Forbearance 166,301 156,842 184,633 186,379 104,736 114,685 208,344 - 9,750 30,561 79,737 43,753 44,542 -

Percentage $ - Forbearance 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.2% 0.4% 0.2% 0.3% 0.1% 0.1% 0.0%

Repayment -

Count 5,134 5,197 5,177 5,184 5,189 5,574 5,577 - 1,214 2,142 1,343 782 96 -

Dollar 53,996,515 54,658,828 54,359,323 54,287,280 54,270,118 58,306,291 58,051,914 - 11,888,013 22,805,097 14,169,490 8,442,521 746,792 -

Percentage 27.7% 27.8% 27.6% 27.5% 27.5% 29.5% 29.5% 0.8 0.6 0.4 0.2 0.0 -

Count - Current (<=29) 4,856 5,018 4,911 4,922 4,932 5,253 5,257 - 1,103 2,022 1,285 754 93 -

Dollar - Current (<=29) 50,409,874 52,299,682 50,593,143 50,471,732 50,455,516 53,774,544 53,605,853 - 10,179,678 21,145,978 13,402,795 8,142,538 734,863 -

Percentage $ - Current (<=29) 93.4% 95.7% 93.1% 93.0% 93.0% 92.2% 92.3% 85.6% 92.7% 94.6% 96.4% 98.4% 0.0%

Count - Delinquent (=30 to <=59) 128 77 105 111 97 133 152 - 40 55 33 21 3 0

Dollar - Delinquent (=30 to <=59) 1,574,277 1,044,874 1,423,805 1,513,257 1,359,538 1,795,137 2,049,430 - 599,785 727,421 474,680 235,614 11,929 -

Percentage $ Delinquent (=30 to <=59) 2.9% 1.9% 2.6% 2.8% 2.5% 3.1% 3.5% 5.0% 3.2% 3.4% 2.8% 1.6% 0.0%


Dollar - Delinquent (=> 60) 2,012,364 1,314,273 2,342,376 2,302,291 2,455,064 2,736,611 2,396,631 - 1,108,550 931,698 292,014 64,369 - -


Count - Forbearance 584 594 605 617 610 533 528 - 110 212 126 76 4 0

Dollar - Forbearance 8,031,547 8,115,467 8,440,311 8,526,328 8,502,270 7,440,378 7,477,199 - 1,737,443 3,114,435 1,646,741 947,798 30,783 -

Percentage $ - Forbearance 14.9% 14.8% 15.5% 15.7% 15.7% 12.8% 12.9% 14.6% 13.7% 11.6% 11.2% 4.1% 0.0%

Total Delinquents (=> 60) -


Dollar - Delinquent (=> 60) 2,690,867 1,756,126 2,931,959 2,920,997 3,268,139 3,474,029 3,128,786 - 1,149,438 1,192,534 481,599 198,987 106,228 -


ACS / FICO Bands Delinquencies (=>60) - - - - - - - - - - - - -

Count of loans less than 600 - - - - - - - - - - - - - -

Dollar of loans less than 600 - - - - - - - - - - - - - -

Count of loans greater than 600 and less than 640 1 1 3 1 2 1 1 - - - - 1 - -

Dollar of loans greater than 600 and less than 640 4,994 4,994 34,469 4,994 22,000 9,000 9,475 - - - - 9,475 - -

Count of loans greater than 640 and less than 700 65 48 70 64 71 86 87 - 19 29 19 13 7 -

Dollar of loans greater than 640 and less than 700 737,758 522,527 854,755 787,613 903,601 955,802 1,023,497 - 300,456 340,714 181,647 112,522 88,158 -

Count of loans equal or greater than 700 159 102 144 142 156 175 158 - 57 65 24 9 3 -

Dollar of loans equal or greater than 700 1,948,116 1,228,605 2,042,735 2,128,391 2,342,538 2,509,227 2,095,814 - 848,982 851,820 299,952 76,990 18,070 -

Total Forbearance -

Count 606 619 633 639 630 553 548 - 112 217 133 78 8 0

Dollar 8,197,848 8,272,309 8,624,945 8,712,706 8,607,007 7,555,063 7,685,542 - 1,747,193 3,144,996 1,726,478 991,550 75,325 -

Percentage $ 4.2% 4.2% 4.4% 4.4% 4.4% 3.8% 3.9% 12.3% 8.1% 4.6% 2.0% 0.1% 0.0%

ACS / FICO Bands Forbearance - - - - - - - - - - - - - -

Count of loans less than 600 - - - - - - - - - - - - - -

Dollar of loans less than 600 - - - - - - - - - - - - - -

Count of loans greater than 600 and less than 640 1 - - - - - 2 - - - - 2 - -

Dollar of loans greater than 600 and less than 640 20,000 - - - - - 5,025 - - - - 5,025 - -

Count of loans greater than 640 and less than 700 110 110 117 123 117 103 104 - 20 34 24 24 2 -

Dollar of loans greater than 640 and less than 700 1,343,130 1,349,041 1,399,915 1,519,071 1,429,522 1,260,314 1,397,131 - 295,853 440,059 341,715 296,957 22,548 -

Count of loans equal or greater than 700 495 509 516 516 513 450 442 - 92 183 109 52 6 -

Dollar of loans equal or greater than 700 6,834,718 6,923,268 7,225,030 7,193,636 7,177,485 6,294,749 6,283,386 - 1,451,340 2,704,938 1,384,763 689,569 52,777 -

Defaults - Current -

Count - Defaults 15 9 7 4 6 2 - - - - - - - -

Dollar - Defaults 165,266 95,712 90,529 67,816 94,005 22,017 - - - - - - - -

Percentage - Defaults 0.08% 0.05% 0.04% 0.02% 0.03% 0.01% 0.00% - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Historic Total Defaults 0 -

2010 paid defaults: 1 loan(s) for a total of $1,770 -




2014 paid to-date defaults: 42 loan(s) for a total of $535,346 -

2014 uninsured defaults: 1 loan(s) for a total of $22,800 -

Death Claims

Paid death claim number - - - - - - - - - - - - - -

Paid death claim value - - - - - - - - - - - - - -

- - - - - - - - - - - - - -

- - - - - - - - - - - - - -

Seasoning 2010 2011 2012 2013 2014

Consolidation Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Jul-14 Jul-14 Jul-14 Jul-14 Jul-14

Total Portfolio CUSO CUSO CUSO CUSO CUSO CUSO CUSO CUSO CUSO CUSO CUSO CUSO CUSO

Count Loans 5,152 5,504 5,871 6,181 6,401 6,612 6,815 137 1,118 2,146 3,218 196

Dollar Loans 253,952,236 270,892,556 287,032,470 300,207,892 309,967,277 318,164,818 326,244,200 5,729,488 50,289,175 104,756,844 155,358,798 10,109,895

ABI Loans 49,292 49,217 48,890 48,569 48,425 48,119 47,871 41,821 44,981 48,815 48,278 51,581

ACS / FICO Overall Portfolio - - - - - - - 274

Count of loans less than 600 - - - - - - - - - - - - -

Dollar of loans less than 600 - - - - - - - - - - - - -

Count of loans greater than 600 and less than 640 - - - - - - - - - - - - -

Dollar of loans greater than 600 and less than 640 - - - - - - - - - - - - -

Count of loans greater than 640 and less than 700 511 538 572 606 630 642 657 - 13 124 222 287 11

Dollar of loans greater than 640 and less than 700 21,523,596 22,773,016 24,075,995 25,236,552 26,300,284 26,791,734 27,191,293 - 445,551 5,601,457 8,916,570 11,791,431 436,284

Count of loans equal or greater than 700 4,641 4,966 5,299 5,575 5,771 5,970 6,158 - 124 994 1,924 2,931 185

Dollar of loans equal or greater than 700 232,428,640 248,119,540 262,956,475 274,971,340 283,666,993 291,373,084 299,052,907 - 5,283,937 44,687,718 95,840,275 143,567,367 9,673,611

Current (<30)

Count 5,057 5,487 5,732 6,093 6,271 6,541 6,699 - 134 1,089 2,101 3,179 196

Dollar 248,395,062 269,961,359 279,457,180 295,313,059 302,615,653 314,020,305 319,529,117 - 5,444,774 48,510,270 102,296,686 153,167,492 10,109,895

$ Percentage 97.81% 99.66% 97.36% 98.37% 97.63% 98.70% 97.94% - 95.03% 96.46% 97.65% 98.59% 100.00%

Delinquencies (30-59)

Count 74 10 136 73 111 53 95 - 1 25 35 34 -

Dollar 4,300,478 545,543 7,414,069 3,887,619 6,487,802 3,237,039 5,552,251 - 101,441 1,578,221 2,047,090 1,825,499 -

$ Percentage 1.69% 0.20% 2.58% 1.29% 2.09% 1.02% 1.70% - 1.77% 3.14% 1.95% 1.18% 0.00%

Total Delinquents (> 60)

Count - Delinquent (=> 60) 21 7 3 15 19 18 21 - 2 4 10 5 -

Dollar - Delinquent =(> 60) 1,256,696 385,653 161,221 1,007,214 863,823 907,474 1,162,832 - 183,273 200,684 413,068 365,807 -

Percentage $ Delinquent (=> 60) 0.49% 0.14% 0.06% 0.34% 0.28% 0.29% 0.36% - 3.20% 0.40% 0.39% 0.24% 0.00%

ACS / FICO Bands Delinquencies (=>60) - - - - - - - - - - - -





Count of loans greater than 640 and less than 700 5 3 1 2 4 3 5 - 1 - 4 - -

Dollar of loans greater than 640 and less than 700 204,296 102,972 14,020 151,085 119,165 110,693 213,580 - 88,191 - 125,389 - -

Count of loans equal or greater than 700 16 4 2 13 15 15 16 - 1 4 6 5 -

Dollar of loans equal or greater than 700 1,052,399 282,682 147,201 856,129 744,657 796,781 949,252 - 95,082 200,684 287,679 365,807 -

Total Forbearance

Count 135 153 151 155 145 168 182 - 4 54 79 45 -

Dollar 8,694,855 9,767,402 9,889,130 10,302,745 9,577,248 11,248,455 12,152,288 - 214,220 3,237,133 5,607,080 3,093,856 -

Percentage $ 3.42% 3.61% 3.45% 3.43% 3.09% 3.54% 3.72% - 3.74% 6.44% 5.35% 1.99% 0.00%

ACS / FICO Bands Forbearance - - - - - - - - - - - -





Count of loans greater than 640 and less than 700 22 25 21 17 19 23 25 - - 10 9 6 -

Dollar of loans greater than 640 and less than 700 1,227,841 1,406,417 1,113,537 936,847 1,186,044 1,297,009 1,577,491 - - 664,047 631,000 282,444 -

Count of loans equal or greater than 700 113 128 130 138 126 145 157 - 4 44 70 39 -

Dollar of loans equal or greater than 700 7,467,015 8,360,985 8,775,593 9,365,898 8,391,205 9,951,446 10,574,798 - 214,220 2,573,085 4,976,080 2,811,412 -

Defaults - Current

Count - Defaults - 1 - - - - - - - - - -

Dollar - Defaults - 28,451 - - - - - - - - - -

Percentage - Defaults 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% - 0.00% 0.00% 0.00% 0.00% 0.00%

Historic Defaults

2010 paid defaults: 0 loan(s) for a total of $0,000




2014 paid to-date defaults: 1 loan(s) for a total of $28,451

Death Claims

Paid death claim number

Paid death claim value

Member Student Lending, LLCBalance SheetJuly 31, 2014

ASSETS

Jul-14 Jul-13

CURRENT ASSETS

CASH & EQUIVALENTSCash Pinnacle FCU/Aspire FCU operating account 20,977.12 79,093.78

TOTAL CASH & EQUIVALENTS 20,977.12 79,093.78

Accounts Receivable 5,750.00 21,062.50

TOTAL CURRENT ASSETS 26,727.12 100,156.28

FIXED ASSETSProperty & Equipment 0.00 0.00

TOTAL FIXED ASSETS 0.00 0.00

OTHER ASSETSOther Investments 0.00 0.00

TOTAL OTHER ASSETS 0.00 0.00

TOTAL ASSETS 26,727.12 100,156.28

LIABILITIES

CURRENT LIABILITIESAccounts Payable & Accrued Exp. 0.00 48,807.41Other Liabilities 0.00 0.00

TOTAL CURRENT LIABILITIES 0.00 48,807.41

TOTAL LIABILITIES 0.00 48,807.41

CAPITAL

Paid in Capital 3,200.00 3,200.00Retained Earnings 23,527.12 16,883.74

TOTAL CAPITAL 26,727.12 51,348.87

TOTAL LIABILITIES & CAPITAL 26,727.12 100,156.28

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Member Student Lending, LLCIncome Statement

For the 1 month(s) ended July 31, 2014

1 Month Ended Year to Date 1 Month Ended Year to Date7/31/2014 7/31/2014 7/31/2013 7/31/2013

Actual Actual Actual Actual 2014 BudgetINCOMEInterest/Dividends 0.94 26.93 2.92 14.19 35.00CUSO fee deposits 0.00 16,287.50 47,212.50 83,937.50 91,000.00

TOTAL INCOME 0.94 16,314.43 47,215.42 83,951.69 91,035.00

EXPENSESProfessional Fees 0.00 2,650.00 9,500.00 26,275.00 - Consulting Expenses 0.00 22,850.00 0 0 23,000.00 Legal Expenses 750.00 3,750.00 0 0 10,000.00 CUSO Meeting & Travel Expenses 0.00 6,616.30 0.00 1,575.68 9,000.00 Administrative Services 800.00 5,618.81 944.49 6,595.97 10,200.00 Loan Portfolio Analytics 350.00 2,800.00 350.00 2,100.00 4,200.00 Mgmt & Prof Liability Policy-CMG 0.00 1,989.75 0.00 1,989.75 2,000.00 Audit Expense 2,750.00 24,400.00 0.00 0.00 17,000.00 Income Taxes 0.00 286.17 2,475.00 10,271.01 -

TOTAL EXPENSES 4,650.00 70,961.03 13,269.49 48,807.41 75,400.00

OPERATING INCOME (4,649.06) (54,646.60) 33,945.93 35,144.28

NET INCOME (LOSS) ($4,649.06) ($54,646.60) 33,945.93 35,144.28 15,635.00

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cuso board meeting agenda august 13 2014 - new … student lending, llc board of managers meeting...

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