§682.409. Mandatory assignment by guaranty agencies of defaulted loans to the Secretary.

For each of the two fiscal years following the fiscal year in which these regulations are effective, the loan, and any other loans held by the agency for that borrower, have been held by the agency for at least four years; for any subsequent fiscal year such loan must have been held by the agency for at least five years.

Calculation of fiscal year loan type recovery rate. A fiscal year loan type recovery rate for an agency is determined by dividing the amount collected on defaulted loans, including collections by Federal Income Tax Refund Offset, for each loan program (i.e., the Stafford, PLUS, SLS, and Consolidation loan programs) by the agency for loans of that program (including payments received by the agency on loans under §§ 682.401(b)(1) and 682.409 and the amounts of any loans purchased from the guaranty agency by an eligible lender) during the most recent fiscal year for which data are available by the total of principal and interest owed to an agency on defaulted loans for each loan program at the beginning of the same fiscal year, less accounts permanently assigned to the Secretary through the most recent fiscal year.

Calculation of loan type recovery rate standards. The Secretary, within 30 days after the date for submission of the second quarterly report from all agencies, makes available to all agencies a mid-year report, showing the recovery rate for each agency and the average recovery rate of all active guaranty agencies for each loan type. In addition, the Secretary, within 120 days after the beginning of each fiscal year, makes available a final report showing those rates and the average rate for each loan type for the preceding fiscal year.

Allow the agency to revise the agency's submission to include the required information and documentation in the specified form and format;

In the case of an improperly formatted computer tape, reformat the tape and assess the cost of the activity against the agency;

Reorganize the material submitted and assess the cost of that activity against the agency; or

Obtain from other agency records and add to the agency's submission any information from the original submission, and assess the cost of that activity against the agency.

A written assignment of the loan or judgment, unless this assignment is affixed to the promissory note.

A payment history for the loan, as described in § 682.414(a)(1)(ii)(C).

A collection history for the loan, as described in § 682.414(a)(1)(ii)(D).

The record of the lender's disbursement of Stafford and PLUS loan funds to the school for delivery to the borrower.

If the MPN or promissory note was signed electronically, the name and location of the entity in possession of the original electronic MPN or promissory note.