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Staff Summary of Resolution No 2004-6

Staff Summary of Resolution No 2004-6-2025

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The document outlines a proposal by the California Alternative Loan Marketing Association (Callie Mae) to address the collection of defaulted loans under the Cal Loan Program, which has identified 134 borrowers with 211 loans in default totaling approximately $1.7 million. It details the historical context of bond issuances, the responsibilities of CEFA and participating institutions regarding loan defaults, and proposes new collection procedures based on Federal Family Education Loan Program (FFELP) guidelines. Key recommendations include accepting FFELP forms for deferment, removing 'Default' from credit reports after timely payments, waiving interest during deferment periods, and writing off debts in cases of death or total disability. The estimated annual costs to CEFA for implementing these procedures are projected at $17,000.

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