Description
RELEASE DATE: JUNE 6, 2022
DURATION: 80 MINUTES
Live broadcast date May 24, 2022
As we approach our final destination on the long road to Current Expected Credit Losses (CECL) methodology, make sure your Credit Union is on the right path.
For most credit unions, the best CECL solutions are the Weighted Average Remaining Maturity (WARM) method or the Scaled CECL Allowance for Losses Estimated (SCALE) model. The WARM Method uses your credit union’s historical charge-off rates and your loan portfolio’s remaining life to estimate the Allowance for Credit Losses (ACL). It can also include credit migration for a more precise measure of loss exposure.
The SCALE model is a variation of the WARM method, using peer group proxy information for charge off rates and the portfolio’s remaining maturity. This session will review the pros and cons of both of methods and help you determine which one is best for your credit union.
Click here to learn about The Home Stretch to CECL – Part 1
Click here to learn about The Home Stretch to CECL – Part 3
Click here to learn about The Home Stretch to CECL – Part 4
THE PRESENTERS
- Mike Richards, CPA – Richards & Associates, CPAs
- Panelist: Randy Thompson, PHD – TCT Risk Solutions, LLC
- Panelist: Daniel Stuhlemmer, CPA – Financial Accounting Standards Board (FASB)
