Speaker - Dr. Joseph L. Breeden, COO and Chief Scientist, Deep Future Analytics, LLC
FASB's new Current Expected Credit Loss (CECL) accounting standards for estimating loan loss reserves offer general guidelines and a list of possibilities and a considerable amount of flexibility in implementation, which makes it difficult for lenders to assess the options available and potential impact and trade-offs. Furthermore, lenders must be able to defend their implementation approach to validators, auditors, and examiners. With a rule like this looming over and threatening your bottom line, that choice is significant, and it is vital to start your planning immediately.
The study, funded by NAFCU, AlliedSolutions, and OnApproach, explores the best modeling approaches for CECL. A dozen different models were tested against Fannie and Freddie mortgage data to highlight strengths, weaknesses, and trade-offs in model choices. Performance through the economic cycle of the new CECL rules was compared against the old FAS 5 approach. CECL rules present unique challenges to credit unions no matter their size.
The CECL Study, led by Dr. Joseph Breeden of Deep Future Analytics, looks closely at issues such as which models are available to credit unions and the impact to the allowance reserve from each. This webinar will shed light on these questions, and assist your organization making important decisions regarding CECL.
Deep Future Analytics, an advanced analytics CUSO that provides modeling, data pooling, and CECL analysis for credit unions, will be joining OnApproach for a webinar presenting the findings of the DFA CECL Study.