It’s crunch time.

SEC filers will start estimating their allowances according to CECL as of the first quarter of 2020, just a little more than a year and a half from now. Considering they will want to run parallel incurred loss and CECL methodologies for several quarters – a year is recommended – most lenders, including private companies, are knee-deep in preparations, setting up transition committees, gathering data, studying methodologies. […]

CECL Is a Process Not an Event

CECL should be looked at as a process and not an event. We transition today toward CECL implementation on principles-based guidance. But through time and eventual practice, auditor opinion, and regulatory enforcement, the allowance will evolve to a more intense and sophisticated process, manipulating our assumptions, analyzing our numbers, understanding our trends as we continually refine our models and methods to enhance our knowledge and improve portfolio performance. […]

2018-10-24T11:23:14+00:00April 13th, 2018|Advisory, Analytics, CECL, CECL Education, Model|

Assessing Prospective CECL Methodologies: Vintage

Part of a MST Blog Series examining prospective CECL-compliant methodologies  The road to CECL compliance ends in identifying the CECL methodology (or methodologies) that best suits the institution and its loan portfolios as well as complies with CECL guidance and regulator demands.  […]

2018-10-25T12:48:06+00:00April 28th, 2017|Model|