New program to monitor loans

The Bush administration's fiscal 2007 budget proposal calls for a new President’s Management Agenda initiative that would improve and monitor credit program management. Federal agencies have more than $1.3 trillion in outstanding direct loans.

According to the proposal, five federal agencies – the Agriculture, Education, Housing and Urban Development, and Veterans Affairs departments and the Small Business Administration – will be part of a new initiative designed to manage risk.

Agencies receive scores based on their performance in loan origination, servicing and portfolio monitoring, and liquidation and debt collection.

A credit council comprised of the Office of Management and Budget and agency representatives will monitor the initiative.

“The council will identify agency and private-sector best practices that can be implemented across the major credit agencies, leading to higher program and management efficiencies, budgetary savings and improved PART scores,” the budget proposal states.


Stay Connected


Sign up for our newsletter.

I agree to this site's Privacy Policy.