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Predictive Modeling – Important Questions that CUs Need to Ask
Published in Lending, Lending Insights
As you know, the new CECL guidance calls for estimating life of loan losses for the ALLL reserve. “Life of Loan” — just three simple words — but its implementation is anything but simple. Many factors within your portfolio can, and often do, affect loss estimates. For example, the age of the loan, borrower’s credit…
CECL – Not Your Mom’s ALLL Calculation
CECL (Current Expected Credit Loss) is an ongoing, pervasive topic when I sit down and talk with credit unions. I believe this is partly because many are nervous and unsure of its potential impact, and how to start preparing for it. There is a ton of information floating around on the subject; some accurate, some…