Transforming Federal Lending Program Operations (Part 1 of 3)

The federal government’s lending balance sheet now exceeds $5 trillion—a staggering figure that underscores the scale and complexity of public credit programs. Yet, behind this massive portfolio, many agencies are still relying on legacy credit subsidy models and outdated technology stacks.

In the first episode of our three-part video podcast series, host Kate Lynch Machado (Director of Strategic Growth at Summit), sits down with Scott Senkier (Data Science Manager), Sarah Cunningham (Partner), and Scott Burroughs (Director). These three experts have spent their careers in the engine room of federal credit solutions. Together they unpack why change has been so slow, what’s at stake, and where the opportunities for innovation lie.

The Costs of Standing Still: Technical Debt and Innovation Gaps in Federal Lending

What This Episode Covers

• Why many agencies are still relying on 20-year-old credit subsidy models
• How “if it’s not broke, don’t fix it” thinking has slowed modernization
• The real costs of technical debt and the risks of key person dependency
• Why high-quality, accessible data is essential for effective credit management
• How outdated systems create barriers to transparency, oversight, and adaptability
• Where cloud-based platforms and modern tools can create opportunities for innovation

The conversation provides a candid look at how legacy technology, siloed data, and manual processes create hidden risks in a federal lending portfolio. The panel also discusses how modernizing models and systems can strengthen oversight, support better policy decisions, and improve public trust.

This episode sets the stage for what’s next: a focus on practical solutions—how domain experts, cloud-based AI, and new reporting tools can help agencies address long-standing challenges and move toward a more innovative future.

Meet Summit’s Federal Credit Experts

Scott Senkier, Data Science Manager, oversees Summit’s application development team and specializes in designing, building, and modernizing credit-supporting applications, leading transitions from legacy systems to modern platforms for federal agencies such as the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury.

Sarah Cunningham, Partner, is the former Chief of the Office of Management and Budget (OMB) credit team who oversaw the federal credit portfolio during the Great Recession and later served as the HUD Chief Financial Officer supporting its $3 trillion portfolio. She has led major credit program designs, modernizations, and policy innovations—including the second-generation OMB credit subsidy calculator, credit performance scorecards, and improved budgetary accounting—while continuing to advise a wide range of federal credit programs as a leading voice in credit policy.

Scott Burroughs, Director, has more than 15 years of experience in developing credit subsidy models for over 20 federal programs, leveraging his background in economic forecasting, supporting both cohort and loan-level modeling, and training dozens of staff to build ACRA-compliant cashflow models aligned with OMB’s credit subsidy calculator.