EX-99.1 2 d200403dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO   

KPMG LLP

Suite 700

20 Pacifica

Irvine, CA 92618-3391

Independent Accountants’ Report on Applying Agreed-Upon Procedures

Pennsylvania Higher Education Assistance Agency (the “Agency”)

BMO Capital Markets Corp.

BofA Securities, Inc.

Credit Suisse Securities (USA) LLC

(together, the “Specified Parties”)

 

Re:

Pennsylvania Higher Education Assistance Agency Student Loan Trust 2021-1 (the “PHEAA Student Loan Trust 2021-1 Bonds”) – Data File Procedures

We have performed the procedures described below on the specified attributes in an electronic data file entitled “2021-1 MR50 (31May21) v2.xlsx,” provided by the Agency on June 24, 2021, containing information on 84,427 financed eligible student loans (the “Financed Eligible Loans”) as of May 31, 2021 (the “Data File”), which we were informed are intended to be included as collateral in the offering of PHEAA Student Loan Trust 2021-1 Bonds. The Agency is responsible for the specified attributes identified by the Agency in the Data File.

The Specified Parties have agreed to and acknowledged that the procedures performed are appropriate to meet their intended purpose of assisting specified parties in evaluating the accuracy of the specified attributes in the Data File. This report may not be suitable for any other purpose. No other parties have agreed to or acknowledged the appropriateness of these procedures for the intended purpose or any other purpose.

The procedures performed may not address all the items of interest to a specified party of this report and may not meet the needs of all specified parties of this report and, as such, specified parties are responsible for determining whether the procedures performed are appropriate for their purposes. We make no representation regarding the appropriateness of the procedures either for the intended purpose or for any other purpose.

Unless otherwise stated, the following definitions have been adopted in presenting our procedures and findings:

 

•  

The term “compared” means compared to the information shown and found it to be in agreement. Such compared information was deemed to be in agreement if differences were within the reporting threshold.

 

•  

The term “recomputed” means recalculated and compared the result to the information shown and found it to be in agreement. Such recomputed information was deemed to be in agreement if differences were within the reporting threshold.

 

•  

The term “reporting threshold” means that dollar amounts and percentages were within $1.00 and 0.1%, respectively.

 

•  

The term “System Screen Shots” means the following electronic screenshots containing information from the Agency’s servicing system and origination system for the Selected Financed Eligible Loans (defined below): Loan Detail Information Screen, Borrower Demographics Screen, Interest Rate Change/History Screen, Loan Financial Activity Breakdown Screen, Loan Deferment/Forbearance History Target Screen, and Loan Financial Activity Screen.

 

•  

The term “Instructions” means the instructions provided by the Agency pertaining to a procedure, attribute, or methodology, as described in Exhibit B.

KPMG LLP, a Delaware limited liability partnership and a member firm of

the KPMG global organization of independent member firms affiliated with

KPMG International Limited, a private English company limited by guarantee.

LOGO

 

•  

The term “Provided Information” means the System Screen Shots and Instructions.

The procedures we were instructed by the Agency to perform and the associated findings are as follows:

 

A.

We randomly selected a sample of 200 Financed Eligible Loans from the Data File (the “Selected Financed Eligible Loans”). A listing of the Selected Financed Eligible Loans is attached hereto as Exhibit A. For purposes of this procedure, the Agency did not inform us of the basis they used to determine the number of Financed Eligible Loans we were instructed to randomly select from the Data File.

 

B.

For each Selected Financed Eligible Loan, we compared the specified attributes listed below to or using the corresponding information contained in the System Screen Shots, utilizing the Instructions, as applicable. The Specified Parties indicated that the absence of any of the information in the System Screen Shots or the inability to agree the indicated information from the Data File to the System Screen Shots for each of the attributes identified, utilizing the Instructions as applicable, constituted an exception. The System Screen Shots are listed in the order of priority.

 

Attribute

   

System Screen Shots / Instructions

Student Account Number    Loan Detail Information Screen
Loan Sequence ID    Loan Detail Information Screen
First Disbursement Date    Loan Detail Information Screen
Guarantee Agency    Loan Detail Information Screen
Borrower State    Borrower Demographics Screen
Effective Borrower Interest Rate    Loan Detail Information Screen, Interest Rate Change/History Screen, and Instructions
Outstanding Loan Principal Balance    Loan Detail Information Screen, Loan Financial Activity Screen, Loan Financial Activity Breakdown Screen, and Instructions
Borrower Payment Status    Loan Detail Information Screen, Loan Deferment/Forbearance History Target Screen, Loan Financial Activity Screen, and Instructions
Loan Type    Loan Detail Information Screen

 

C.

For each Selected Financed Eligible Loan, we observed the presence of the following:

 

  •  

Signed Promissory Note. We make no representation regarding the authenticity of the signature(s).

We were engaged by the Agency to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants, which involves us performing the specific procedures agreed to and acknowledged above and reporting on findings based on performing those procedures. We were not engaged to, and did not, conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the specified attributes in the Data File. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported.

We are required to be independent of the Agency and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

 

2

LOGO

The procedures performed were applied based on the information indicated in the Data File and Provided Information, without verification or evaluation of such information by us; therefore, we express no opinion or any other form of assurance regarding (i) the reasonableness of the information provided by the Agency, (ii) the physical existence of the Financed Eligible Loans, (iii) the reliability or accuracy of the Provided Information which was used in our procedures, or (iv) matters of legal interpretation.

The procedures performed were not intended to address, nor did they address: (i) the conformity of the origination of the Financed Eligible Loans to stated underwriting or credit extension guidelines, standards, criteria or other requirements, (ii) the value of collateral securing any such Financed Eligible Loans being securitized, (iii) the compliance of the originator of the Financed Eligible Loans with federal, state, and local laws and regulations, or (iv) any other factor or characteristic of the Financed Eligible Loans that would be material to the likelihood that the issuer of the asset-backed security will pay interest and principal in accordance with applicable terms and conditions. The procedures performed were not intended to satisfy any criteria for due diligence published by the nationally recognized statistical rating organizations (“NRSROs”).

The terms of our engagement are such that we have no responsibility to update this report because of events and circumstances that may subsequently occur.

This report is intended solely for the information and use of the Specified Parties. It is not intended to be and should not be used by any other person or entity, including investors or NRSROs, who are not identified in the report as Specified Parties but may have access to this report as required by law or regulation.

/s/KPMG LLP

Irvine, California

July 22, 2021

 

3

Exhibit A

The Selected Financed Eligible Loans

 

Selected
Financed
Eligible Loan

Number

    Financed
Eligible Loan
Number		      Selected
Financed
Eligible Loan
Number		      Financed
Eligible Loan
Number		      Selected
Financed
Eligible Loan
Number		      Financed
Eligible Loan
Number		      Selected
Financed
Eligible Loan
Number		      Financed
Eligible Loan
Number		  
1      20211001        51        20211051        101        20211101        151        20211151  
2      20211002        52        20211052        102        20211102        152        20211152  
3      20211003        53        20211053        103        20211103        153        20211153  
4      20211004        54        20211054        104        20211104        154        20211154  
5      20211005        55        20211055        105        20211105        155        20211155  
6      20211006        56        20211056        106        20211106        156        20211156  
7      20211007        57        20211057        107        20211107        157        20211157  
8      20211008        58        20211058        108        20211108        158        20211158  
9      20211009        59        20211059        109        20211109        159        20211159  
10      20211010        60        20211060        110        20211110        160        20211160  
11      20211011        61        20211061        111        20211111        161        20211161  
12      20211012        62        20211062        112        20211112        162        20211162  
13      20211013        63        20211063        113        20211113        163        20211163  
14      20211014        64        20211064        114        20211114        164        20211164  
15      20211015        65        20211065        115        20211115        165        20211165  
16      20211016        66        20211066        116        20211116        166        20211166  
17      20211017        67        20211067        117        20211117        167        20211167  
18      20211018        68        20211068        118        20211118        168        20211168  
19      20211019        69        20211069        119        20211119        169        20211169  
20      20211020        70        20211070        120        20211120        170        20211170  
21      20211021        71        20211071        121        20211121        171        20211171  
22      20211022        72        20211072        122        20211122        172        20211172  
23      20211023        73        20211073        123        20211123        173        20211173  
24      20211024        74        20211074        124        20211124        174        20211174  
25      20211025        75        20211075        125        20211125        175        20211175  
26      20211026        76        20211076        126        20211126        176        20211176  
27      20211027        77        20211077        127        20211127        177        20211177  
28      20211028        78        20211078        128        20211128        178        20211178  
29      20211029        79        20211079        129        20211129        179        20211179  
30      20211030        80        20211080        130        20211130        180        20211180  
31      20211031        81        20211081        131        20211131        181        20211181  
32      20211032        82        20211082        132        20211132        182        20211182  
33      20211033        83        20211083        133        20211133        183        20211183  
34      20211034        84        20211084        134        20211134        184        20211184  
35      20211035        85        20211085        135        20211135        185        20211185  
36      20211036        86        20211086        136        20211136        186        20211186  
37      20211037        87        20211087        137        20211137        187        20211187  
38      20211038        88        20211088        138        20211138        188        20211188  
39      20211039        89        20211089        139        20211139        189        20211189  
40      20211040        90        20211090        140        20211140        190        20211190  
41      20211041        91        20211091        141        20211141        191        20211191  
42      20211042        92        20211092        142        20211142        192        20211192  
43      20211043        93        20211093        143        20211143        193        20211193  
44      20211044        94        20211094        144        20211144        194        20211194  
45      20211045        95        20211095        145        20211145        195        20211195  
46      20211046        96        20211096        146        20211146        196        20211196  
47      20211047        97        20211097        147        20211147        197        20211197  
48      20211048        98        20211098        148        20211148        198        20211198  
49      20211049        99        20211099        149        20211149        199        20211199  
50      20211050        100        20211100        150        20211150        200        20211200  

 

Note:

The Agency has assigned a unique Loan ID number to each Financed Eligible Loan in the Data Files. The Financed Eligible Loan Numbers referred to in this Exhibit are not the Loan ID numbers.

 

A-1

Exhibit B

Instructions

 

Attributes

   

Instructions

Effective Borrower Interest Rate    Compare the Effective Borrower Interest Rate in the Data File to the “INT RTE” field on the Loan Detail Information Screen. In the event the Effective Borrower Interest Rate does not agree, compare the Effective Borrower Interest Rate in the Data File to the “INTEREST RATE” field on the Interest Rate Change/History Screen utilizing only account activity information that occurred on or prior to May 31, 2021 (the “Cutoff Date”).
Outstanding Loan Principal Balance    Compare the Outstanding Loan Principal Balance in the Data File to the “CUR PRIN” field on the Loan Detail Information Screen. In the event the Outstanding Loan Principal Balance does not agree, compare the Outstanding Loan Principal Balance in the Data File to the “PRINCIPAL BALANCE” field on the loan Financial Activity Screen utilizing only account activity information that occurred on or prior to the Cutoff Date. In the event the Outstanding Loan Principal Balance does not agree, adjust the previously derived Outstanding Loan Principal Balance by the “APPLIED AMT” in the Loan Financial Activity Breakdown Screen field if it was applied after the Cutoff Date and compare it to the Outstanding Loan Principal Balance in the Data File.
Borrower Payment Status   

Compare the Borrower Payment Status in the “WX-LON-STA” and “WX-LON-SUB-STA” fields in the Data File to the “STATUS” field on Loan Detail Information Screen utilizing the Mapping Descriptions found in Exhibit C and only account activity information that occurred on or prior to the Cutoff Date.

 

In the event the Borrower Payment Status does not agree, use the below instructions:

 

•  If the Loan Deferment/Forbearance History Target Screen reports a “D” in the “TYP” field applied before the Cutoff Date and ending after the Cutoff Date, the Borrower Payment Status is “Deferment.” Compare this field to the Borrower Payment Status in the Data File utilizing the Mapping Descriptions.

 

•  If the “STATUS” field on the Loan Detail Information Screen is “Pre-Claim Submitted,” recomputed the days delinquent by taking the difference of the Cutoff Date and “DATE OF DELQ” field in the Loan Detail Information Screen. If the difference was 60 days or less, the Borrower Payment Status is “Repayment.” Compare this field to the Borrower Payment Status in the Data File utilizing the Mapping Descriptions.

 

•  If the “STATUS” field on the Loan Detail Information Screen is “Repayment” and the Loan Financial Activity Screen report the payments were more than 60 days delinquent as of the Cutoff Date, the Borrower Payment Status was “Pre-Claim Submitted.” Compare this field to the Borrower Payment Status in the Data File utilizing the Mapping Descriptions.

 

•  If the “STATUS” field on the Loan Detail Information Screen is “Paid in Full” and the Loan Financial Activity Screen reports the loan was outstanding on the Cutoff Date, the Borrower Payment Status is “Repayment.” Compare this field to the Borrower Payment Status in the Data File utilizing the Mapping Descriptions.

 

•  If the “STATUS” field on the Loan Detail Information Screen is “Forbearance” or “Deferment” and the Deferment/Forbearance History Target Screen reports a “D” or “F” in the “TYP” applied after the Cutoff Date, the Borrower Payment Status will be either (a) “Repayment” if the System Screen Shots report the payments were less than or equal to 60 days delinquent as of the Cutoff Date or (b) “Pre-Claim Submitted” if the System Screen Shots report the payment were more than 60 days delinquent as of the Cutoff Date. Compare this field to the Borrower Payment Status in the Data File utilizing the Mapping Descriptions.

 

B-1

Exhibit C

Mapping Descriptions

Borrower Payment Status

Per System Screen Shots

   

Per Data File

LOAN STATUS    WX-LON-STA    WX-LON-SUB-STA
CLAIM    IN SCHOOL    BANKRUPTCY V
REPAYMENT    IN SCHOOL    CLAIM CANCEL
SCHOOL    IN SCHOOL    CURRENT
ENDORSER BANK NOPUR    IN SCHOOL    ENBK-NOPUR
GRACE    IN GRACE    CLAIM CANCEL
GRACE    IN GRACE    CURRENT
CLAIM    IN REPAY    BANKRUPTCY V
REPAYMENT    IN REPAY    CLAIM CANCEL
REPAYMENT    IN REPAY    CLAIM PENDIN
REPAYMENT    IN REPAY    CLAIM RETURN
CLAIM    IN REPAY    CLAIM SUBMIT
CLAIM    IN REPAY    CLM PD W/RES
REPAYMENT    IN REPAY    CURRENT
CLAIM    IN REPAY    DEATH ALLEGE
CLAIM    IN REPAY    DEATH VERIFI
DEFERMENT    IN REPAY    DEFERMENT
REPAYMENT    IN REPAY    DELINQUENT
CLAIM    IN REPAY    DISABILITY A
CLAIM    IN REPAY    DISABILITY V
FORBEARANCE    IN REPAY    FORBEARANCE
PRE-CLAIM SUBMITTED    IN REPAY    PRECLAIM SUB
NOT FULLY DISBURSED    IN REPAY    NOT FULLY ORIGINATED
UNINSURED    UNINSURED    CLAIM CANCEL
UNINSURED    UNINSURED    CURRENT
UNINSURED    UNINSURED    DELINQUENT

 

C-1