ALEXANDRIA, Va. –TheNational Credit Union Administration has released the September 2023 update of its Simplified CECL tool, which it says includes the latest life-of-loan, or weighted average remaining maturity, factors, and other enhancements.
As CUToday.info has reported, for most credit unions, CECL became effective Jan. 1, 2023. The Simplified CECL Tool is provided to credit unions as an option for estimating the allowance for credit losses on loans and leases, NCUA noted.
“For credit unions currently using the Simplified CECL Tool, this latest update is provided to determine the credit loss expense, or provision for credit losses, for the quarter that ends September 30, 2023,” the agency said. “For credit unions that adopted CECL in the third quarter of 2023, the September 2023 Call Report will include the day-one adjustment to undivided earnings and the credit loss expense since the date of CECL adoption. The NCUA also reformatted Tab 2 – Individual Basis, of the Simplified CECL Tool to facilitate entering data on individually evaluated loans.”
Where to Get Resources
To obtain the latest version, NCUA said credit unions should visit The Simplified CECL Tool page and select “Download the Latest Simplified CECL Tool.” Additionally, please review the Frequently Asked Questions, User Guide, and Model Development Document that are available on the webpage, the agency advised.
Additional resources are available on the CECL Resources page.