The NCUA has released the first update of the Simplified CECL Tool, which enables credit unions to test and calibrate the tool to estimate the allowance for credit losses on loans and leases as of Sept. 30, 2022.
The update includes the latest life-of-loan, or weighted average remaining maturity factors, as well as minor enhancements.
Though use of the Simplified CECL Tool is not required, the NCUA’s goal is to provide credit unions and their accountants and auditors enough time to test, evaluate, and become acclimated with the tool before CECL’s effective date, which, for most credit unions, is Jan. 1, 2023.
To access the latest version and additional resources, visit The Simplified CECL Tool webpage and click “Download the Latest Simplified CECL Tool.”
Credit union professionals can learn more about the Simplified Current Expected Credit Loss (CECL) Tool in a one-hour live webinar on Wednesday, Oct. 12, at 2 p.m. NCUA subject-matter experts will provide an overview of the Tool, demonstrate the Tool and answer participants’ questions.