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August 20, 2002
TO: Lenders/Holders/Servicers Participating in the Health Education Assistance Loan (HEAL) Program
SUBJECT: Revised Litigation
Data Submission Requirement
Lender Policy Memorandum L-2002-8
The HEAL program is requiring all HEAL loan lenders and holders or their servicer on their behalf to submit litigation data in a revised format on diskette, compact disc, or PGP encrypted e-mail file. A copy of the file specifications, business rules, and litigation edits are attached. Data must be submitted on a monthly basis including data on new accounts and updates to existing accounts. This new format will allow us to better track litigation accounts on a loan level throughout the entire litigation process. Claims will not be paid on accounts where litigation data was not properly reported and updated.
The new layout should be sent to us for testing by November 15, 2002. Barring any unforeseen problems or delays, we expect to receive the new data layout from each lender/holder/servicer of HEAL loans with the December submission due on or before January 10, 2003. Since we are in the process of converting to a new database, we ask that lenders/holders/servicers of HEAL loans who are currently sending these data--continue to send these data in both the old format and new format until our new database becomes our production database. In the time leading up to that point, we will be running parallel databases.
Please contact Ms. Denise Sorrell or Ms. Terri Ehrenfeld of the HEAL Program at (301) 443-1540 if you have any questions concerning this policy memorandum.
Henry Lopez
Director
Division of Health Careers Diversity and Development
HEAL Litigation Business Rules
Basic Requirements/Reporting
- Litigated borrowers must have received a first, second and third preclaim assistance letter from HHS.
- Litigation begins between day 150-180 of delinquency.
- Each litigation action reported to HHS includes all required applicable data elements as determined by the status of the account.
- Litigation actions are reported to HHS on the approved media (see Table D) for the month the litigation action begins or ends.
- Litigation data must be received by the HEAL program by the 10th of every month. This will reflect itigation actions that occurred the prior month.
Litigation Identification Number
- Litigation accounts
are uniquely identified by a litigation ID.
- Servicers must
obtain a unique " block number" from HHS.
- Litigation actions
with a different litigation ID, but the same SSN and litigation begin date
are considered duplicate submissions. It is HHS' s understanding that
there will not be more than one litigation action filed on a borrower per
day for the same holder.
- For previously
litigated borrowers which include closed and canceled litigations, new litigation
actions must receive a new litigation ID.
- Previously canceled
or closed litigations cannot be re-opened using the same litigation ID.
- New litigations
must contain different loans from any previously closed litigation.
Loan Level Data
- Each litigation action
reported to HHS includes information pertaining to the borrower= s HEAL loans
only.
- All loan ID numbers
associated with the litigated account must be reported on the approved media.
- All litigation accounts
must be associated with at least one non-paid-in-full, insured HEAL loan.
- No paid-in-full
or uninsured HEAL loan should be associated with a litigation action.
Account Level Data
- Each
litigation action is reported by 2 records. The first record contains the
"J" record data and the second record contains " JA"
record data. This is specified by placing a "1" in the record
sequence counter field for the "J" record and a "2"
in the record sequence counter field for the " JA" record.
- "A Active
litigation action" ("A" status) means the servicer
is aggressively pursuing actions designed to lead to a satisfactory judgment
from the court.
- "A Canceled
litigation action" (" CN" status) means the litigation
action has been terminated because it became known to the litigation vendor
or servicer' s legal department that a claim has been averted due to
a valid canceled reason. (Codes are listed in Table B) Example - If
a loan was consolidated on 7/1/98 and this fact became known to the vendor
or the legal department on 7/8/98, then the litigation canceled date would
be 7/8/98.
- "A Closed
litigation action" ("CL" status) means the litigation
action has been terminated because it became known to the litigation vendor
or servicer' s legal department that a claim will be filed due to a
valid closed reason. (Codes are listed in Table C) Example - If a judgment
was obtained on a borrower on 6/1/98 and this fact became known to the vendor
or the legal department on 6/9/98, then the litigation closed date would be
6/9/98.
- All litigated
actions are reported to HHS at least once; even if the litigation action is
initiated and closed in the same month.
- In a given month,
servicers should report active litigation actions, canceled litigation actions
and closed litigation actions.
- Actions are continually
reported to HHS until and including the month the litigation action ceases.
After that, no further reporting should occur.
- No litigation
action can be removed from the monthly submissions unless the account was
reported to HHS as canceled or closed.
- Servicers must
cancel litigation actions that are refinanced before reporting the existence
of the new refinanced loan to HHS.
- Litigated actions
for refinanced loans must contain the refinanced loan ID instead of the loan
ID' s for the underlying loans.
- The closed and
canceled reasons for litigation actions must accurately correspond to Table
B and Table C in terms of both code values and definition.
HHS Requirements
- Servicers must contact
the HEAL program to receive valid "Vendor codes" for their litigating
vendors.
- Data reported
by the servicers are expected to be accurate, complete and verified.
- HHS will produce
an acceptance and error/warning report for each submission.
- HHS expects servicers
will correct error/warning reports, determine root causes of errors, and modify
their systems to prevent future occurrences of errors, and resubmit entries
which were in error.
- HHS expects servicers
will report only corrected data in the same format, using the same type of
media as the original submission within 10 days of receipt. This includes
canceled, closed and active litigations.
Table A
HEAL Litigation Status Codes
| Status Code | Status |
A |
Active Litigation Action |
| CN | Canceled Litigation Action |
| CL | Closed Litigation Action |
Table B
HEAL Litigation Canceled Reasons
| Canceled Reason Code | Canceled Reason |
| HLC | HEAL Refinancing |
| DLC | Department of Education Refinancing |
| OLC | Other Types of Refinancing than HEAL or ED |
| D | Deferment |
| EF | Extended Forbearance |
| F | Forbearance |
| R | Repayment |
| S | In School |
| W7 | Chapter 7 Bankruptcy, not adversary motion |
Table C
HEAL Litigation Closed Reasons
| Closed Reason Code | Closed Reason |
| FC | Foreign Country |
| SK | Skip |
| W13 | Chapter 13 Bankruptcy |
| X | Death |
| Y | Disability |
| J | Judgment |
| UN | Unable to Serve |
| W11 | Chapter 11 Bankruptcy |
| ADV | Adversary Bankruptcy |
Table D
HEAL Approved Media
Compact Disk
Floppy Disk
PGP (email encryption)
As of August 1, 2002
LITIGATION
As of: August 1, 2002
Error Messages
1. Required value is missing.
2. Supplied value is invalid.
3. First four characters of Litigation ID must be the FY of Litigation Begin Date.
4. Lender block number (position 5-6 of Litigation ID) is invalid for submitting Servicer ID Number.
5. Litigation ID supplied is associated with another borrower’s SSN.
6. Litigation ID is already in HEAL with a different Holder ID Number and Servicer ID Number.
7. Litigation ID is submitted more than once on the electronic submission with the same Current Litigation Status.
8. More than one litigation action submitted on a borrower for the same Litigation Begin Date for the same Holder ID Number.
9. Record Sequence Counter must be “1” or “2”.
10. Record Sequence Counter “1” submitted with no corresponding Record Sequence Counter “2” for Litigation ID.
11. Record Sequence Counter “2” submitted with no corresponding Record Sequence Counter “1” for Litigation ID.
12. Cannot find SSN in HEAL file.
13. Litigation Begin Date must be less than HEAL electronic submission received date.
14. Litigation Amount must be greater than $0 and less than or equal to $500,000.
15. Litigation Amount different than Litigation Amount originally submitted to HEAL.
16. Current Litigation Status must be “A”, “CN” or “CL”.
17. Cannot allow Current Litigation Status to change from “CL” to “A” or “CL” to “CN”.
18. Cannot allow Current Litigation Status to change from “CN” to “A” or “CN” to “CL”.
19. Litigation Canceled Date must be less than HEAL electronic submission received date and greater than or equal to Litigation Begin Date.
20. Litigation Canceled Reason cannot be submitted without a Litigation Canceled Date.
21. Litigation Canceled Reasons must be “HLC”, “DLC”, “OLC”, “D”, “EF”, “F”, “R”, “S” or “W7” when Current Litigation Status of “CN” is submitted.
22. Litigation Closed Date must be less than HEAL electronic submission received date and greater than or equal to Litigation Begin Date.
23. Litigation Closed Reason cannot be submitted without a Litigation Closed Date.
24. Litigation Closed Reasons must be “FC”, “SK”, “W13”, “X”, “Y”, “J”, “UN”, “W11” or “ADV” when Current Litigation Status of “CL” is submitted.
25. Complaint Filed State cannot be “FC”.
26. Complaint Filed State must be equal to borrower’s state on current address.
27. Original Vendor Received Date is required if the Original Vendor is submitted.
28. If HEAL has Original Vendor Received Date, cannot submit a null Original Vendor Received Date.
29. Current Vendor Received Date is required when Current Vendor is submitted.
30. Current Vendor Received Date must be greater than or equal to Original Vendor Received Date and before Judgment Date or Litigation Closed/Canceled Date.
31. If HEAL has Current Vendor Received Date, cannot submit a null Current Vendor Received Date.
32. Attorney Retained Date must be greater than Original Vendor Received Date (if both are filled).
33. If HEAL has Attorney Retained Date, cannot submit a null Attorney Retained Date.
34. Complaint Filed Date must be greater than Attorney Retained Date (if both are filled).
35. If HEAL has Complaint Filed Date, cannot submit a null Complaint Filed Date.
36. Summons Serviced Date must be greater than Complaint Filed Date (if both are filled).
37. If HEAL has Summons Serviced Date, cannot submit a null Summons Serviced Date.
38. Contested Date must be greater than Summons Serviced Date (if both are filled).
39. If HEAL has Contested Date, cannot submit a null Contested Date.
40. If Countersuit Date is submitted, Contested Date must also be submitted.
41. Countersuit Date must be greater than Contested Date.
42. If HEAL has Countersuit Date, cannot submit a null Countersuit Date.
43. Judgment Date must be greater than Countersuit Date (if both are filled).
44. If HEAL has Judgment Date, cannot submit a null Judgment Date.
45. Judgment Date is required if Litigation Closed Reason is “J”.
46. All dates previously submitted to HEAL cannot be changed.
47. Litigation ID cannot contain different Loan Ids than what exists in HEAL (previously submitted).
48. All loans must be in active loan status (“D”, “G”, “R”, “I”, “F”, “Q”, “NL”).
49. All loans must have a loan type of “A” (original HEAL loan) or “M” (refinanced HEAL loan).
50. Loan ID supplied is associated with another borrower’s SSN.
51. Loan ID supplied is invalid since the HEAL system contains no record of the supplied Loan ID ever being issued.
52. Loan ID is submitted more than once on the electronic submission.
53. Submitted Loan ID cannot be attached to a valid claim or a litigation having Current Litigation Status of “A” or “CL”.
54. Loan ID is in HEAL with a different Holder ID Number and/or Servicer ID Number.
55. Delinquency Date must be less than Litigation Begin Date.
56. Loan Litigation Amount must be greater than $0 and less than or equal to $500,000.
57. File Type must be “SO” or “SE”.
HEAL CUSTOMER FILE SPECIFICATIONS
FOR LITIGATION DATA
LENDER TO HEAL
( J RECORDS)
| FIELD NAME |
ITEM # |
COL. |
LEN. |
TYPE |
REQ. FIELD |
FORMAT |
FIELD NAME DESCRIPTION |
| Litigation ID |
1 |
1 - 12 |
12 |
A/N |
Yes |
YYYYLBB##### |
AYYYY@ is the 4 position government fiscal year derived from litigation date; AL@ is a constant; ABB@ is the lender block number assigned by HEAL and A#####@ is a unique sequential number. |
| Record Sequence Counter |
2 |
14 - 14 |
1 |
N |
Yes |
1 |
Assign a A1" to the AJ@ record and a A2" to the corresponding AJA@ record. |
| Social Security Number |
3 |
16 - 24 |
9 |
N |
Yes |
999999999 |
The borrowers social security number. |
| Litigation Begin Date |
4 |
26-33 |
8 |
N |
Yes |
YYYYMMDD |
Date litigation package was sent to the original vendor or to a servicer=s legal department to initiate litigation. |
| Litigation Amount |
5 |
35-43 |
9 |
N |
Yes |
999999.99 |
Total dollar amount of unpaid principal and interest accumulated at the time of the litigation date. This field will never change. |
| Current Litigation Status |
6 |
45-46 |
2 |
A |
Yes |
Values: A, CN, CL |
Litigation status as of the last day of reporting month. See Table A. |
| Litigation Canceled Reason |
7 |
48-50 |
3 |
A |
Yes |
Values: HLC, DLC, OLC, D, EF, F, R, S, W7 |
Applicable and required only if litigation status=CN. See Table B. |
| Litigation Canceled Date |
8 |
52-59 |
8 |
N |
Yes |
YYYYMMDD |
Applicable and required only if litigation status=CN. Date it became known to the litigating vendor or servicer=s legal department that the claim has been averted due to a valid canceled reason. |
| Litigation Closed Reason |
9 |
61-63 |
3 |
A |
Yes |
Values: FC, SK, W13, X, Y, J, UN, W11, ADV |
Applicable and required only if litigation status=CL. See Table C. |
| Litigation Closed Date |
10 |
65-72 |
8 |
N |
Yes |
YYYYMMDD |
Applicable and required only if litigation status=CL. Date it became known to the litigating vendor of servicer=s legal department that a claim will be filed due to a valid closed reason. |
| Complaint Filed Date |
11 |
74-81 |
8 |
N |
Yes |
YYYYMMDD |
Date the complaint was filed with the court for the first time for this litigation or zero fill (00000000) if complaint has not been filed yet. |
| Complaint Filed State |
12 |
83-84 |
2 |
A |
Yes |
Valid State Code |
Most recent state in which the complaint was filed or zero fill (00) if complaint has not been filed yet. |
| Summons Serviced Date |
13 |
86-93 |
8 |
N |
Yes |
YYYYMMDD |
Date the summons were served or an attempt was made to serve the borrower for the first time for this litigation or zero fill (00000000) if summons has not been served yet. |
| Judgment Date |
14 |
95-102 |
8 |
N |
Yes |
YYYYMMDD |
Date the judge signed the judgment order or zero fill (00000000) if judgment has not occurred; required if Litigation Status=CL, and Litigation Closed Reason=J. |
| Holder ID Number |
15 |
104-109 |
6 |
N |
Yes |
999999 |
HEAL holder code for the current holder. |
| Servicer ID Number |
16 |
111-116 |
6 |
N |
Yes |
999999 |
HEAL servicer code for the current servicer. |
| Original Vendor |
17 |
118-124 |
7 |
A/N |
Yes |
XXXXXXX |
Vendor retained to initiate litigation for the first time for this litigation-confirm with HHS or zero fill (0000000) if case has not yet been sent to vendor. Vendor code must be approved by HHS. |
| Original Vendor Received Date |
18 |
126-133 |
8 |
N |
Yes |
YYYYMMDD |
Date the litigation package was received by the original vendor or servicer=s legal department or zero fill (00000000) if case has not yet been sent to vendor. |
| Current Vendor |
19 |
135-141 |
7 |
A/N |
Yes |
XXXXXXX |
Vendor currently pursuing litigation (as of the last day of the reporting month)- confirm with HHS or zero fill (0000000) if case has not yet been sent to vendor. Vendor code must be approved by HHS. |
| Current Vendor Received Date |
20 |
143-150 |
8 |
N |
Yes |
YYYYMMDD |
Date the litigation package was received by the current vendor or servicer=s legal department or zero fill (00000000) if case has not yet been sent to vendor. |
| Attorney Retained Date |
21 |
152-159 |
8 |
N |
Yes |
YYYYMMDD |
Date attorney retained by the current vendor or servicer=s legal department or zero fill (00000000) if case has not yet been retained. |
| Contested Date |
22 |
161-168 |
8 |
N |
Yes |
YYYYMMDD |
Date the borrower informed the court that he/she intends to contest the judgment or zero fill (00000000) if case has not been contested. |
| Countersuit Date |
23 |
170-177 |
8 |
N |
Yes |
YYYYMMDD |
Date the borrower filed counter-suit to have the judgment vacated or zero fill (00000000) if the borrower has not filed a countersuit. |
| File Type |
24 |
179-180 |
2 |
A |
Yes |
Values: SO, SE |
SO-Submission Original, SE-Submission Error |
| Filler |
181-500 |
320 |
A |
Yes |
Space characters |
As of August 1, 2002
HEAL CUSTOMER FILE SPECIFICATIONS
FOR LITIGATION DATA
LENDER TO HEAL
( JA RECORDS)
| FIELD NAME |
ITEM # |
COL. |
LEN. |
TYPE |
REQ. FIELD |
FORMAT |
FIELD NAME DESCRIPTION |
| Litigation ID |
25 |
1 - 12 |
12 |
A/N |
Yes |
YYYYLBB##### |
AYYYY@ is the 4 position government fiscal year derived from litigation date; AL@ is a constant; ABB@ is the lender block number assigned by HEAL and A#####@ is a unique sequential number. |
| Record Sequence Counter |
26 |
14 - 14 |
1 |
N |
Yes |
2 |
Assign a A1" to the AJ@ record and a A2" to the corresponding AJA@ record. |
| Loan ID-1 |
27 |
16-27 |
12 |
N |
Yes |
YYYYBB999999 |
A valid HEAL loan ID for this loan. |
| Delinquency Date-1 |
28 |
29-36 |
8 |
N |
Yes |
YYYYMMDD |
Date this loan was declared delinquent. |
| Loan Litigation Amount-1 |
29 |
38-46 |
9 |
N |
Yes |
999999.99 |
Total dollar amount of unpaid principal and interest accumulated on this individual loan as of the last day of the reporting month. This field is updated monthly. |
| Loan ID-2 |
30 |
48-59 |
12 |
N |
Yes |
YYYYBB999999 |
see corresponding definition or zero fill(000000000000). |
| Delinquency Date-2 |
31 |
61-68 |
8 |
N |
Yes |
YYYYMMDD |
see corresponding definition or zero fill(00000000). |
| Loan Litigation Amount-2 |
32 |
70-78 |
9 |
N |
Yes |
999999.99 |
see corresponding definition or zero fill (00000000). |
| Loan ID-3 |
33 |
80-91 |
12 |
N |
Yes |
YYYYBB999999 |
see corresponding definition or zero fill(000000000000). |
| Delinquency Date-3 |
34 |
93-100 |
8 |
N |
Yes |
YYYYMMDD |
see corresponding definition or zero fill(00000000). |
| Loan Litigation Amount-3 |
35 |
102-110 |
9 |
N |
Yes |
999999.99 |
see corresponding definition or zero fill (00000000). |
| Loan ID-4 |
36 |
112-123 |
12 |
N |
Yes |
YYYYBB999999 |
see corresponding definition or zero fill(000000000000). |
| Delinquency Date-4 |
37 |
125-132 |
8 |
N |
Yes |
YYYYMMDD |
see corresponding definition or zero fill(00000000). |
| Loan Litigation Amount-4 |
38 |
134-142 |
9 |
N |
Yes |
999999.99 |
see corresponding definition or zero fill (00000000). |
| Loan ID-5 |
39 |
144-155 |
12 |
N |
Yes |
YYYYBB999999 |
see corresponding definition or zero fill(000000000000). |
| Delinquency Date-5 |
40 |
157-164 |
8 |
N |
Yes |
YYYYMMDD |
see corresponding definition or zero fill(00000000). |
| Loan Litigation Amount-5 |
41 |
166-174 |
9 |
N |
Yes |
999999.99 |
see corresponding definition or zero fill (00000000). |
| Loan ID-6 |
42 |
176-187 |
12 |
N |
Yes |
YYYYBB999999 |
see corresponding definition or zero fill(000000000000). |
| Delinquency Date-6 |
43 |
189-196 |
8 |
N |
Yes |
YYYYMMDD |
see corresponding definition or zero fill(00000000). |
| Loan Litigation Amount-6 |
44 |
198-206 |
9 |
N |
Yes |
999999.99 |
see corresponding definition or zero fill (00000000). |
| Loan ID-7 |
45 |
208-219 |
12 |
N |
Yes |
YYYYBB999999 |
see corresponding definition or zero fill(000000000000). |
| Delinquency Date-7 |
46 |
221-228 |
8 |
N |
Yes |
YYYYMMDD |
see corresponding definition or zero fill(00000000). |
| Loan Litigation Amount-7 |
47 |
230-238 |
9 |
N |
Yes |
999999.99 |
see corresponding definition or zero fill (00000000). |
| Loan ID-8 |
48 |
240-251 |
12 |
N |
Yes |
YYYYBB999999 |
see corresponding definition or zero fill(000000000000). |
| Delinquency Date-8 |
49 |
253-260 |
8 |
N |
Yes |
YYYYMMDD |
see corresponding definition or zero fill(00000000). |
| Loan Litigation Amount-8 |
50 |
262-270 |
9 |
N |
Yes |
999999.99 |
see corresponding definition or zero fill (00000000). |
| Loan ID-9 |
51 |
272-283 |
12 |
N |
Yes |
YYYYBB999999 |
see corresponding definition or zero fill(000000000000). |
| Delinquency Date-9 |
52 |
285-292 |
8 |
N |
Yes |
YYYYMMDD |
see corresponding definition or zero fill(00000000). |
| Loan Litigation Amount-9 |
53 |
294-302 |
9 |
N |
Yes |
999999.99 |
see corresponding definition or zero fill (00000000). |
| Loan ID-10 |
54 |
304-315 |
12 |
N |
Yes |
YYYYBB999999 |
see corresponding definition or zero fill(000000000000). |
| Delinquency Date-10 |
55 |
317-324 |
8 |
N |
Yes |
YYYYMMDD |
see corresponding definition or zero fill(00000000). |
| Loan Litigation Amount-10 |
56 |
326-334 |
9 |
N |
Yes |
999999.99 |
see corresponding definition or zero fill (00000000). |
| Loan ID-11 |
57 |
336-347 |
12 |
N |
Yes |
YYYYBB999999 |
see corresponding definition or zero fill(000000000000). |
| Delinquency Date-11 |
58 |
349-356 |
8 |
N |
Yes |
YYYYMMDD |
see corresponding definition or zero fill(00000000). |
| Loan Litigation Amount-11 |
59 |
358-366 |
9 |
N |
Yes |
999999.99 |
see corresponding definition or zero fill (00000000). |
| Loan ID-12 |
60 |
368-379 |
12 |
N |
Yes |
YYYYBB999999 |
see corresponding definition or zero fill(000000000000). |
| Delinquency Date-12 |
61 |
381-388 |
8 |
N |
Yes |
YYYYMMDD |
see corresponding definition or zero fill(00000000). |
| Loan Litigation Amount-12 |
62 |
390-398 |
9 |
N |
Yes |
999999.99 |
see corresponding definition or zero fill (00000000). |
| Loan ID-13 |
63 |
400-411 |
12 |
N |
Yes |
YYYYBB999999 |
see corresponding definition or zero fill(000000000000). |
| Delinquency Date-13 |
64 |
413-420 |
8 |
N |
Yes |
YYYYMMDD |
see corresponding definition or zero fill(00000000). |
| Loan Litigation Amount-13 |
65 |
422-430 |
9 |
N |
Yes |
999999.99 |
see corresponding definition or zero fill (00000000). |
| Loan ID-14 |
66 |
432-443 |
12 |
N |
Yes |
YYYYBB999999 |
see corresponding definition or zero fill(000000000000). |
| Delinquency Date-14 |
67 |
445-452 |
8 |
N |
Yes |
YYYYMMDD |
see corresponding definition or zero fill(00000000). |
| Loan Litigation Amount-14 |
68 |
454-462 |
9 |
N |
Yes |
999999.99 |
see corresponding definition or zero fill (00000000). |
| File Type |
69 |
464-465 |
2 |
N |
Yes |
Values: SO, SE |
SO-Submission Original, SE-Submission Error |
| Filler |
466-500 |
35 |
A |
Yes |
Space characters |
