This is What You Need to Know About CECL, The Biggest Change in Credit Union Accounting We've Seen in Years
in Blog
By: Barbara Agin, NJCUL VP, Member Experience & Education

As we were developing an agenda for our upcoming "All About Mortgages" workshop that focuses on helping credit unions "stepping up their game" in this arena, it made sense to bring in an experienced accountant to speak about risk. 

When we reached out to Robert (Bob) Fouratt from The Curchin Group to cover importance of managing risk (which was also covered in a previous blog of ours), early registrants asked if FASB's new Current Expected Credit Loss (CECL) standard and the changes it brings to credit loss accounting would be addressed. I first reached out to NCUA, but they shared that it is too soon for a regulatory perspective. Knowing that this topic was a fit for Bob, we quickly added the session, “A High Level Look at CECL”.

I had a brief conversation with Bob regarding his session on CECL to get a preview...

Bob shared that CECL is going to be the biggest change in credit union accounting of his career. Both the model and the approach for establishing allowance for loan losses is changing. Where the current model estimates current losses today, in the new model, credit unions will have to estimate future losses.

In his session, Bob will do a walk through on the approach – what data credit unions will need to capture, etc. He stressed: you need to start planning now!

Bob also shared that he is planning to hold half-day training sessions during the summer – more on that in the upcoming months.

Join us for this and much more at the "All About Mortgages: Stepping Up Your Game" Workshop on February 6, 2018 at the East Windsor Holiday Inn.