Common Manual Adopts Common Claim Policies from Common Claim Initiative

To assure that your Common Manual remains current, please record this document on your LPM/LPB index and retain it in Appendix E of your manual.

Preclaim Request Form Adopted by Guarantors

To standardize the preclaim assistance request process for lenders, the Common Manual guarantors worked with representatives from lenders, servicers and student loan industry groups to adopt the common Preclaim Request Form. A lender must use this form or an equivalent electronic format to request preclaim assistance. The new form is effective for preclaim assistance requests filed by the lender on or after September 1, 1999, unless implemented earlier by the guarantor. However, lenders should note that some data on the new Preclaim Request Form must be collected and reported for loans first disbursed on or after September 1, 1998, for any preclaim assistance request filed under the new format.

The Preclaim Request Form is designed to be used by a lender as a request for preclaim assistance. On the basis of this request, the guarantor also will initiate supplemental preclaim assistance, unless otherwise notified by the lender. All loans included on the Preclaim Request Form must have the same loan type, due date, and interest-paid-through date. Subsidized and unsubsidized Stafford loans that have been combined into one repayment schedule may be combined in one preclaim request.

The form and instructions, and associated policies are provided here to assist lenders and servicers in planning and implementing the new aspects of the standard preclaim assistance request process. Each lender is advised to work closely with its guarantor to ensure a clear understanding of the procedures required to implement the new process.

The following list will help lenders determine what information must be provided on the Preclaim Request Form. Detailed descriptions of each field are located in the Preclaim Request Form instructions included on the form.

Information to be Provided for Preclaim Request Form or Equivalent Electronic Format

Lenders must provide the following information on the Preclaim Request Form for all loans reported:

• Type of preclaim assistance requested
• Date the preclaim assistance request was generated
• Borrower’s social security number
• Borrower’s last name, first name, and middle initial
• Borrower’s last known address
• Name of the last-known eligible school attended by the borrower or attended by the student for a PLUS loan.
• Loan type for each loan identified on the preclaim assistance request
• Loan ID for each loan identified on the preclaim request (e.g., the loan identifier code, file number, guarantee date, or amount, as indicated by the guarantor)
• First disbursement date for each loan identified on the preclaim request, as defined in the lender’s records
• Current principal balance (including all reinsured and unreinsured capitalized interest) due on the date of the preclaim assistance request for each loan identified in the request
• Accrued interest due on the date of the preclaim assistance request for each loan identified in the request
• Date the loan sold (as applicable)
• Date on which the current servicer assumed responsibility for servicing the loan for each loan identified on the preclaim assistance request (as applicable)
• Payment due date of the borrower’s first unmet payment
• Payment amount of the borrower’s currently scheduled installment
• Total amount delinquent on the date the preclaim assistance request was generated
• Number of days delinquent on the date the preclaim assistance request was generated
• Lender or servicer name and address. If the account is being serviced, only the servicer name and address must be provided
• Lender’s six-digit lender ID assigned by the Department and, as applicable, four-digit non-Department suffix
• Contact and telephone number to whom the borrower should be referred (e.g., Customer Servicer Department, Collection Department)
• Telephone number and name of the person or unit responsible for answering questions about information provided on the form

The lender must provide the following information if it is available. The lender may or may not have this information in its servicing records. A lender that cannot provide this information is not required to establish a reporting mechanism.

• AKA (previous or alternative name used by the borrower)
• Validity of the borrower’s address
• Address effective date
• Borrower’s home telephone number, work number, other number, and validity of the telephone numbers.
• Name, telephone number, and address of the borrower’s place of employment
• Stafford loans--the date the student is last enrolled at least half-time, before any grace period and the initial conversion to repayment                                       PLUS/SLS loans--the date the student or borrower ceased eligibility for an in-school deferment (for immediately deferred loans only)                                          Consolidation loans and PLUS/SLS loans not immediately deferred--the latest disbursement date. For Consolidation loans, the latest disbursement date on the beginning loan balance should be used if the lender did not establish a new due date when an add-on was accomplished. If the lender established a new due date with the add-on loan, the disbursement date for the add-on should be provided.
• Six- or eight-digit code assigned by the Department for the last-known eligible school attended by the student
• Validity of the references’ address(es)
• Relationship of each reference to the borrower
• Home telephone numbers, work numbers, other numbers, and validity of the telephone numbers for each reference
• Amount of the most recent payment received and the date received
• Total number of deferment and/or discretionary forbearance months granted to the borrower for each specific deferment or discretionary forbearance identified on the preclaims request

The lender must provide the following information for all loans first disbursed on or after September 1, 1998, when requesting preclaim assistance on the Preclaim Request Form or in an equivalent electronic format. For loans with first disbursements prior to September 1, 1998, if the lender has the information, it must be provided on the Preclaim Request Form or in an equivalent electronic format.

• Address and last name, first name, and middle initial of two references
• Full name of the endorser, comaker, or PLUS student and identifying code
• Endorser’s, comaker’s, or PLUS student’s social security number
• Endorser’s, comaker’s, or PLUS student’s last-known complete address and validity of the address
• Endorser’s, comaker’s, or PLUS student’s home telephone number and validity of the number
• Servicer’s six-digit servicer ID assigned by the Department

If a lender submits a request for preclaim assistance on which any required information is missing, incomplete, or inaccurate, the guarantor may attempt to obtain the necessary information from its own system or request the information from the lender. The lender must provide any requested information or resubmit any rejected preclaim request within the time frame established by the guarantor. If a lender is unable to provide the requested information within the guarantor’s established time frames, the loan may be subject to an interest penalty if a claim is later filed and paid.

A new section to accommodate the new form is being added to chapter 8 — section 8.11, and appendix F of the Common Manual will include the new Preclaim Request Form and instructions.

Claim Form and Policies Adopted by Guarantors

The Common Manual guarantors, working with representatives from lenders, servicers, and student loan industry groups, have developed common policies and a common form to standardize the claim filing process. The Claim Form is designed to permit a lender to file a claim reimbursement request in a single format with any guarantor, and to improve operational efficiencies for lenders and servicers that have relationships with more than one guarantor. The form must be used for all claims filed by the lender on or after March 1, 2000, unless implemented earlier by the guarantor. However, lenders should note that some data on the new Claim Form must be collected and reported for loans first disbursed on or after September 1, 1998, for any claim reimbursement request filed by the lender in the new format.

The form and instructions, and associated policies are provided here to assist lenders and servicers in planning and implementing the new aspects of the standard claim process. Each lender is advised to work closely with its guarantors to ensure a clear understanding of the procedures required to implement the new claim process.

The following list will help lenders determine what information must be provided on the Claim Form. Detailed descriptions of each field are located in the Claim Form instructions included on the form.

Information to be Provided for Claim Form or Equivalent Electronic Format

Lenders must provide the following information on the Claim Form for all loans reported:

• Type of claim being submitted
• Date condition occurred
• Borrower’s social security number
• Borrower’s last name, first name, and middle initial
• Borrower’s last known address
• Loan type for each loan identified on the Claim Form
• Loan ID for each loan identified on the Claim Form (e.g., the loan identifier code, file number, guarantee date, or amount, as indicated by the guarantor)
• Date the loan sold (as applicable)
• Date on which the current servicer assumed responsibility for servicing the loan for each loan identified on the Claim Form (as applicable)
• First disbursement date for each loan identified on the claim request
• Interest rate, interest rate type, and the date loan converted to a variable rate for each loan identified
• Amount of cure interest capitalized and unpaid cure interest not capitalized for each loan claimed
• PLUS student’s social security number, and name
• Full name of the endorser, comaker, and the identifying code
• Original out-of school date (i.e., The date the Stafford loan borrower ended enrollment on at least a half-time basis, or the Consolidation, PLUS, SLS borrower’s latest disbursement date, or the date the PLUS, SLS borrower ceased eligibility for an in-school deferment)
• Date the lender was notified of the original out-of-school date
• Note whether the original out-of-school date changed after the account entered repayment
• Due date of the first monthly installment
• Total amount of principal and interest payments made by or on behalf of the borrower
• Number of months due date advanced by payments made by or on behalf of the borrower
• Number of regular monthly installments deferred or forborne
• Number of months account was out of guarantee
• Total number of noncontinuous individual periods of deferment and forbearance
• Number of reconversion months
• Due date of the first unmet installment of the borrower’s delinquency
• Date through which interest was last paid
• Total original principal value disbursed to the borrower for the loans claimed
• Total amount of interest capitalized
• Total principal repaid on the borrower’s account before and after entering repayment
• Total principal value of the borrower’s debt which is used to compute the interest claimed
• Amount of interest capitalized not eligible for claim payment
• Total principal value of the claim
• Amount of unpaid cure interest not capitalized
• Amount of outstanding reinsured interest claimed and the date through which it was accrued
• Amount of any other reinsured costs incurred on the account
• Lender’s six-digit lender ID assigned by the Department and, as applicable, four digit nondepartment suffix
• Current servicer’s name and address
• Preparer’s name and telephone number
• Borrower, endorser, and comaker collection activity codes and dates the activities were performed

The lender must provide the following information if it is available. The lender may or may not have this information in its servicing records. A lender that cannot provide this information is not required to establish a reporting mechanism.

• AKA (previous or alternate name used by the borrower).
• Validity of the borrower’s address
• Borrower’s home telephone number, work number, other number, and validity of the telephone numbers
• Name, telephone number, and address of the borrower’s place of employment
• Current principal balance (including all reinsured and unreinsured capitalized interest) due for each loan identified on the date of the claim request
• Claim review status for which the lender currently qualifies

The lender must provide the following information on the Claim Form or in an equivalent electronic format for all loans first disbursed on or after September 1, 1998. For loans with first disbursements prior to September 1, 1998, if the lender has the information, it must be provided.

• Endorser’s or comaker’s social security number (SSN)
• Endorser’s or comaker’s last known complete address and the validity of the address
• Endorser’s or comaker’s home telephone number and the validity of the number
• Servicer’s six-digit servicer ID assigned by the Department

A new section to accommodate the new form is being added to chapter 8 — section 8.12, and appendix F of the Common Manual will include the new Claim Form and instructions.

Policies to Implement the Claim Form and Instructions

The Common Manual guarantors approved policies that will incorporate the Claim Form and its instructions into the Common Manual. Unless noted otherwise, these new policies are effective for claims filed by the lender on or after March 1, 2000. These policies are provided to assist lenders and servicers in planning and implementing the new aspects of the standard claim process. Each lender is advised to work closely with its guarantors to ensure a clear understanding of the procedures required to implement the following policies.

Timely Filing Guidelines Clarified

Current Common Manual policy encourages a lender to file a default claim after the 210th day of delinquency, and requires that the claim not be filed before the 180th day or after the 270th day of delinquency. However, current policy does not address the time frame in which a default claim should be filed on a loan with installments that are due less frequently than monthly. The manual will be revised to clarify that, for a delinquent account scheduled for repayment in installments less frequent than monthly (such as quarterly), a lender is strongly encouraged to file a default claim after the 270th day of delinquency. A default claim may not be filed before the 240th day or after the 330th day of delinquency for loans with installments due less frequently than monthly. Failure to submit a default claim by the 330th day for a loan with installments due less frequently than monthly will result in a timely filing violation and the cancellation of the guarantee on the loan.

This change is retroactive to the effective date of the Common Manual. Subsection 8.2.A. will be revised to reflect this change.

Lender Claim-Filing Statuses

The Claim Form and instructions include three separate claim-filing statuses: Exceptional Performer Status, Standard Review Status, and Program Review Status. The claim-filing status the guarantor or Department assigns determines both the method by which the lender’s claims will be reviewed and paid, and the documentation and information the lender will be required to provide in the claim file.

The three claim review statuses are defined as follows:

1. The Exceptional Performer Status is defined in regulation and assigned by the Department. Lenders achieving this status may file claims using documentation requirements outlined in subsection 8.3.B. Such claims are not subject to additional review for due diligence, conversion to repayment, or timely filing requirements—except as determined to be necessary by the guarantor or the Department as part of the general program oversight responsibility.
2. The Standard Review Status is applicable to a lender for whom the guarantor has identified no significant servicing deficiencies. Lenders under this status may file claims using documentation requirements as outlined in subsection 8.3.B.
3. The Program Review Status is applicable to a lender for whom the guarantor has identified significant servicing deficiencies. For lenders assigned this claim filing status, the guarantor may require additional information and documentation to support the claim.

This information will be added to subsection 8.3.B. of the Common Manual.

Revised Claim File Documentation

When filing a claim under the new standard process, the lender must provide all required data elements on the Claim Form, which includes an accurate and legible record of the collection history. The lender must submit the Form and all required documentation as defined by the new policies. Documents listed below without additional explanation have not changed from their current definition in the Common Manual, as noted in subsection 8.3.B. Note also that guarantors may require lenders to provide additional information or documentation, for example if the borrower disputes the loan amount or a school disputes its cohort default rate.

•Original Application and Promissory Note

•Assignment of the Promissory Note
The claim file must contain the holder’s original assignment of the promissory note. This assignment may be stamped, typed, or written directly on the back of the note, or, if the guarantor permits, may be in the form of a letterhead assignment submitted on the current holder’s letterhead, or may be incorporated on the Claim Form.

•Out-of-School Date Information 
Documentation supporting the lender's out-of-school date must be included as part of the claim documentation only if the lender is aware that its out-of-school date is different from the out-of-school date in the guarantor's records.

•Curing Instrument  
The lender is required to submit the curing instrument (or a legible copy of a curing instrument) as part of the claim file documentation if that documentation was not previously provided to the guarantor. Examples of curing instruments include a new repayment agreement signed by the borrower, a copy of a payment check, or, in the case of an ICA location cure, acceptable evidence that the borrower has been located as required in subsection 8.8.L.

•Death or Disability Documentation (if applicable)

•Bankruptcy Documentation (if applicable) 
For a bankruptcy claim, the lender must submit notification of the bankruptcy filing, such as the Notice of the First Meeting of Creditors or other confirmation received directly from the bankruptcy court or from another source; a copy of the Proof of Claim filed by the lender, if required; an original assignment of the Proof of Claim, if required; and all other pertinent documents sent to or received from the bankruptcy court.

•Ineligible Borrower Documentation (if applicable)
For an ineligible borrower claim, the lender must provide documentation of the month, day, and year the final demand due to the determination of ineligibility was sent along with reasonable documentation supporting the borrower's ineligibility for the loan, such as an affidavit or letter from the school or a statement from the lender clearly stating the facts and allegations.

•Closed School and False Certification Claim Documentation (if applicable)

Subsection 8.3.B. will be revised to specify the required documentation to be submitted with the Claim Form.

Closed School and False Certification Claim Requirements and Terminology Modified
Under the new standardized process, a lender must provide the total amount of payments made by or on behalf of the borrower for the loan(s) on the Claim Form. If the total amount of payments made by or on behalf of the borrower is not available, the lender must clearly explain why this information is not provided on the Claim Form. If the lender is aware of having received payments from a third-party source (such as a tuition recovery program), these amounts must be included in the total amount of principal repaid on the Claim Form, but must not be included in the total amount of payments made by or on behalf of the borrower. Subsections 8.2.G. and 8.2.H. will be revised to reflect these changes.

Incomplete Payment Information
Lenders will be required to provide payment information on the new Claim Form rather than in a separate, detailed payment history. As a result, the Common Manual will be revised to indicate that the guarantee on a loan may be lost due to a lender’s failure to provide accurate payment information required on the Claim Form. If a guarantee is lost, the lender may attempt to have the loan’s guarantee reinstated in many cases, by following the applicable cure procedures. Common Manual subsection 8.3.C. will be updated to reflect this change.

Standardized Formula for Principal Claimed
As part of the standardization of the Claim Form and instructions, the Common Manual guarantors have standardized the formula used to calculate the total principal value of claims. The guarantor will base the claim payment on the principal claimed figure calculated by lenders on the Claim Form, as follows:

Principal claimed = Total amount disbursed + Capitalized interest - Principal repaid - Cure interest capitalized.

In addition to the formula for the calculation of principal claimed, the guarantors have established a minimum total claim payment amount of $50 for any type of claim. Guarantors will not pay a claim for any loan on which the sum of principal, accrued interest, and other insured sums is less than $50.

Subsections 8.2.C. and 8.6.A. of the Common Manual will be updated to reflect these changes.

Ineligible Borrower Claim Requirements Specified

The Common Manual has been revised to specify that an ineligible borrower claim with a late final demand letter or timely filing violation will be purchased with an interest penalty. The new policy provides that the claim will be purchased and the loan subject to an interest penalty as follows:

•If the claim is filed untimely but the final demand letter is mailed timely, the claim will be paid, but interest will be limited to the amount that accrued through the 120th day following the date the final demand letter is mailed.

•If the final demand letter is mailed untimely, interest will be limited to the amount that accrued through the 180th day following the date the lender determined the borrower to be ineligible.

Common Manual subsections 8.2.F., 8.8.E., and 8.8.K. will be revised to reflect these changes. These changes are effective for ineligible borrower claims first filed on or after March 1, 2000, unless implemented earlier by the guarantor.

Timely Filing Deadlines for Bankruptcy Claims Clarified
The Common Manual will be updated to clarify timely filing deadlines for certain bankruptcy claims. Usually, the lender learns of the borrower’s bankruptcy filing or the filing of an adversary complaint by the receipt of documents directly from the bankruptcy court or the borrower’s attorney. For these loans, a bankruptcy claim and proof of claim, if applicable, must be filed with all required documents within 30 days of the lender’s receipt of the Notice of First Meeting of Creditors or other confirmation issued by the bankruptcy court.

In some cases, however, the lender first learns of the borrower’s bankruptcy or adversary complaint when a guarantor provides bankruptcy information and instructions to file a claim. For such loans, the new policy requires the lender to file the claim within 30 days of the date the guarantor provides the lender with necessary information and instructs the lender to file a claim, or within 30 days of the lender’s receipt of applicable notices, whichever is earlier.

In addition, the revised policy clarifies that if a borrower files a petition for undue hardship (or adversary complaint), the lender must file a claim within 15 days of receiving the petition or within 15 days of the date the guarantor provides the lender with the bankruptcy information and instructs the lender to file a claim, whichever is earlier. If the lender receives an extension of time from the bankruptcy court for filing a response to the undue hardship petition (adversary complaint), the claim must be filed no less than 25 days before the expiration of that extended period or within 15 days of the date the guarantor provides the lender with the bankruptcy information and instructs the lender to file a claim, whichever is later. Subsection 8.2.D. of the Common Manual will be revised accordingly.

Return Claims Clarified
In addition to the standardization and clarification of policies related to the actual Claim Form, claim documentation, and filing time frames, the Common Manual will be modified to provide clarity and uniformity in guarantor policy as it relates to the return of a claim to the lender.

The policy will reflect that a guarantor will return a claim to the lender under certain circumstances. A claim return could occur for one or more of the following reasons:

• The lender incurs a violation that results in a loss of guarantee on the loan.
• The claim package contains inadequate documentation.
• The borrower is found not to be in a default status.
• The lender is unable to provide sufficient documentation to justify a borrower’s total and permanent disability, death, false certification, closed school, or bankruptcy.
• The borrower actually is eligible for a loan when a lender incorrectly determines that he or she is ineligible (for example, when a lender receives retroactive information that a student never enrolled although the student actually attended classes).

If a claim is returned to the lender by the guarantor a second or subsequent time for the same reason, that return will result in a loss of eligibility for interest, interest benefits, and special allowance payments beyond the 30th day after the lender’s receipt of the original return. However, in the case of a default claim, the original return must have been resubmitted on or before the 60-day refiling deadline. For a default claim, failure to resubmit a second or subsequent return by the 60th day after the lender’s receipt of such second or subsequent return will result in cancellation of the guarantee on the loan. Subsections 8.4., 8.4.B., 8.8., and 8.8.E. of the Common Manual will be revised to incorporate these revised policies.

Following are three examples that further illustrate the revised claim return policy.

EXAMPLE 1

The lender receives a claim returned by the guarantor for a missing promissory note. The lender resubmits the claim to the guarantor 15 days after its receipt of the claim but fails to include the missing promissory note. The guarantor returns the same claim a second time for the missing promissory note. The lender resubmits the claim to the guarantor 20 days after its receipt of the claim again, this time including the requested promissory note. In this case, the lender has incurred loss of eligibility for interest, interest benefits, and special allowance payments beyond the 30th day after the lender’s receipt of the original return.

A claim returned to the lender a second or subsequent time for a different reason will result in no loss of eligibility for interest, interest benefits, and special allowance payments provided the claim is resubmitted on or before the 30th day after the lender’s receipt of the second or subsequent return. In the case of a default claim, failure to resubmit a second or subsequent return claim by the 60th day after the lender’s receipt of such second or subsequent return will result in cancellation of the guarantee on the loan.

The lender receives a claim returned by the guarantor for documentation supporting the lender’s out-of-school date. The lender resubmits the claim with the required documentation to the guarantor 15 days after its receipt of the claim. The guarantor returns the same claim a second time– this time for missing due diligence activities. The lender resubmits the claim to the guarantor with the requested due diligence activities 20 days after its receipt of the returned claim. No loss of eligibility for interest, interest benefits, and special allowance payments are incurred for timely resubmission of the first and second return.

EXAMPLE 3

The lender receives a claim returned by the guarantor for documentation to support the borrower’s total and permanent disability. The lender resubmits the claim with the supporting documentation to the guarantor 15 days after its receipt of the returned claim. The guarantor returns the same claim a second time for a missing promissory note. The lender resubmits the claim with the requested promissory note to the guarantor 20 days after its receipt of the returned claim. No loss of eligibility for interest, interest benefits, and special allowance payments is incurred for timely resubmission of the first and second returns.

Penalties for Due Diligence Violations Associated with Address and Telephone Skip Tracing Requirements Clarified

The current text of the Common Manual will be modified to provide clarity and uniformity in guarantor policies regarding the penalty assessment for due diligence violations associated with missing or untimely skip tracing activities.

One due diligence violation will be assessed and the guarantor will purchase outstanding interest that accrues through the date of default if the lender:

• does not initiate address skip tracing within 10 days of the date the lender learns that it does not know the correct address of the borrower, but completes all required activities before the date of default and has no gap of 46 days or more.
• fails to complete skip tracing activity by the date of default but completes all required activities before a timely claim is filed and has no gap of 46 days or more.
• fails to initiate address skip tracing within the 10-day time frame and fails to complete skip tracing activities by the date of default but completes all required activities before a timely claim is filed and has no gap of 46 days or more.

If a lender performs some—but not all—required skip tracing activities and has no gap of 46 days or more, one due diligence violation will be assessed and the guarantor will purchase outstanding interest that accrued through the 90th day before default. For address skip tracing, one violation will be assessed regardless of whether or not the address skip tracing was initiated within 10 days of the date the lender learned that it did not know the correct address for the borrower.

If no skip tracing activity is performed, the guarantor will return the claim for loss of guarantee. If the lender completes the skip tracing requirements and resubmits the claim within the time frames associated with the claim return, the guarantor will assess penalties as follows:

• If all required skip tracing activities are completed, one due diligence violation will be assessed and the guarantor will purchase outstanding interest that accrues through the date of default.
• If some—but not all—required skip tracing activities are completed, two due diligence violations will be assessed (one for "untimely" completion of the skip tracing activities, and one for the skip tracing activities being incomplete). The guarantor will purchase outstanding interest that accrues through the 90th day before default.
• If a claim is resubmitted with no skip tracing activity performed, three due diligence violations will be assessed, resulting in the cancellation of the guarantee.

This change will be added to Common Manual subsection 8.8.C..

Refiling Deadlines Clarified for Claims Returned for Missing Endorser Due Diligence
The Common Manual currently provides that if all required endorser collection activities have not been performed, the claim file will be returned to the lender, and the lender will be required to perform any missed activities before the claim will be purchased. The manual states that there will be no extension of claim filing time frames to accommodate the performance of these activities. The manual policy will be revised to clarify that if the claim is returned, the lender must submit the claim file within the applicable claim refiling time frames.

This change is effective for returned claims received by the lender on or after March 1, 2000, unless implemented earlier by the guarantor. Subsection 8.1.E. of the Common Manual will be revised to incorporate this clarification.

Inadvertent Cure
Newly revised Common Manual policy will allow a payment or other curing instrument (such as a new repayment agreement signed by the borrower, or a forbearance form signed by the borrower with an agreement to repay included in the text) received after undetected conversion or due diligence violations to cure all prior due diligence violations. If the borrower later defaults on the loan, the guarantor will review the lender's due diligence activities after the "inadvertent" curing activity, based on the appropriate due diligence requirements. Subsection 8.8.H. will be revised to reflect this change.

Revised Rehabilitation Documentation
Current Common Manual policy provides that upon purchase of a rehabilitated loan, the guarantor will provide to the purchasing lender a payment history for the loan. Under the new standard claim filing process, guarantors will no longer receive a detailed payment history document in the original claim file. Instead of the detailed payment history, when a rehabilitated loan is purchased by a lender, the guarantor will provide to the purchasing a lender payment history information, such as the dates and amounts of payments received when the loan was in a default status and other loan documentation to assist in the accurate conversion to repayment. Common Manual section 8.10 will be revised to reflect this change.