Credit unions can access the NCUA’s December 2022 update of the Simplified CECL Tool, which includes the latest life-of-loan, or weighted average remaining maturity factors, and other minor enhancements.

For most credit unions, CECL became effective Jan. 1, 2023, and for credit unions that plan to use the Simplified CECL Tool, the December release can be used to determine the day-one adjustment to undivided earnings, as required by CECL implementation guidance, according to the NCUA. For these credit unions, the day-one adjustment will be recorded effective Jan.1, 2023, and will be reported in the March 2023 Call Report.

With this update and future quarterly updates of the Simplified CECL Tool, credit unions can use the tool to estimate its allowance for credit losses on loans and leases. In addition, quarterly updates will be provided so credit unions can incorporate them before their books are closed and before submitting the NCUA’s Call Report.

To obtain the latest version, in addition to additional information and resources, visit the NCUA’s  Simplified CECL Tool page and click on “Download the Latest Simplified CECL Tool.”