ISI Holdings developed a program to assist lenders making and holding private student loans, The Portfolio Assurance Services Program.
About Us
Along with obtaining a mortgage and planning for retirement, funding a college education is one of the biggest financial decisions a consumer makes. Education lending has unique aspects, requiring lenders to obtain specialized help to enter the market effectively and efficiently. Our specialists have a very particular set of skills to help lenders engage in the education credit markets and provide them with a critical and broad range of private student loan portfolio enhancement services. Through our Portfolio Assurance Services Program, ISI Holdings provides lenders a variety of services focused on optimizing the performance and return on their private student loan portfolios. Utilizing our expertise in private student lending, ISI will help the lender design program underwriting and loan terms and conditions that optimize approval while keeping risk at a minimum. ISI Holdings then works in coordination with the lenders and any third-party servicers they may utilize to ensure compliance with loan origination and servicing throughout the life of the loan. The Agreement includes a warranty by ISI Holdings to purchase loans in the event they do not repay.
The agreement runs for the life of all the covered loans. If the lender desires to sell some or all of their loan portfolio, ISI Holdings will help them find a buyer and assist in managing the transaction. Because the coverage is fully transferrable, the new purchaser can continue the Agreement which will add value to the transaction price.
Program Services for the Lender
Under the Portfolio Assurance Services Agreement, ISI Holdings will provide a number of distinct services for the lender
Loan Product Design
Program Marketing
Loan Servicing Review
Default Mitigation
Bankruptcy, Death, and Disability Account Monitoring
Secondary Market Assistance
Why Choose ISI, LTD
ISI Holdings, LLC provides a unique set of benefits. In calculating the profitability of a program, the one big unknown is the default expense. We are able to mitigate this unknown and help bring a much more predictable return to lenders. By leveraging over 35 years experience in the private student loan space, our specialists use a disciplined, data orientated approach to project default performance. They also back up their program with a warranty to purchase the loans in the event of serious delinquency, mitigating losses for the lender.
By offering a private student loan program, lenders can be a trusted advisor to borrowers who are or will become some of the most profitable customers for the bank. The lender can establish or expand their relationship with these borrowers as they look for auto loans, mortgages, and retirement planning as their careers progress. Student loans provide an earning asset with strong returns. The interest rate is set by the lender and can be customized, within market tolerances, based on variances in the program. This allows the lender control over the return.
Institution Solutions Insurance, Ltd. is a captive insurance company that is wholly owned by ISI Holdings, LLC as a licensed insurance company that provides reimbursement insurance to ISI Holdings.
