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NCUA Releases September Update to Simplified CECL Tool

The National Credit Union Administration (NCUA) released the September 2023 update of its Simplified CECL Tool, which includes the latest life-of-loan, or Weighted Average Remaining Maturity, factors, and other enhancements.

For most credit unions, CECL became effective January 1, 2023. For credit unions currently using the Simplified CECL Tool, this latest update is provided to determine the credit loss expense, or provision for credit losses, for the quarter that ends September 30, 2023.

For credit unions that adopted CECL in the third quarter of 2023, the September 2023 Call Report will include the day-one adjustment to undivided earnings and the credit loss expense since the date of CECL adoption. The NCUA also reformatted Tab 2 – Individual Basis, of the Simplified CECL Tool to facilitate entering data on individually evaluated loans.

To obtain the latest version, please visit the Simplified CECL Tool page and select “Download the Latest Simplified CECL Tool.” Additionally, please review the Frequently Asked QuestionsUser Guide, and Model Development Document that are available on the webpage.

The Simplified CECL Tool is provided to credit unions as an option for estimating the allowance for credit losses on loans and leases. The NCUA implements quarterly updates to enable a credit union to use the tool before closing its books and submitting its quarterly Call Report to the agency.

For additional information on CECL, please visit the NCUA’s CECL Resources page.

Access the ‘Compliance Hotline’
Your League-member benefits include the Compliance Hotline — providing exclusive access to dedicated compliance experts:

Using the above phone number and email address, you can gain access to a knowledgeable team that’s ready to address all your credit union’s compliance inquiries — promptly and efficiently. With the Compliance Hotline, you can proactively respond to impromptu questions and issues by getting clarity and insight on technical topics that normally slow you down. We want to help you unlock the full potential of your League membership by leveraging the resources and support you need to navigate the complex world of compliance effortlessly. We’re ALWAYS just a phone call or email away!

Additionally, other League-member compliance resources include: 

  • ViClarity
  • CU PolicyPro
  • ComplySight
  • InfoSight
  • CU Store
  • Record Retention Guide
  • GRC Technology Solutions

For more information, email Lisa Quaranta.

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