Sequestration_Affect_on_Current_NFPs.docx

Sequestration Affect on Current Not-For-Profit Servicers

The Department has determined that allocations of borrower accounts to not-for-profit (NFP) servicers in 2013 will be limited to the initial statutory allocation of 100,000 accounts per eligible and qualified not-for-profit entity. This decision reflects that additional time is necessary to collect and assess performance results and trends to ensure that allocation metrics can be applied fairly and equitably across servicers. In addition, the sequester provisions of the Budget Control Act of 2011 limit spending levels in the account used to fund NFP servicing operations. In order to stay within these levels, we are unable to transfer additional accounts as that would increase overall spending in this account.