At this year’s Annual Conference, I connected with industry executives for a panel discussion on CECL issues that should be addressed throughout the implementation process. I was joined by Kim Alexander of Blue FCU, Renee Nelson of First Community CU, John Sjaastad of SAS Institute, and panel moderator Eric Mangham of Arkansas FCU. Here are the key issues we discussed.
There is a need for historical data, which encompasses the contractual term of a pool or at least one economic cycle. There’s also a need for data integrity, validation, and reconciliation of all data sets to historical and current loan balances.
The CECL committee must communicate with other committees such as ALM. Forecasting factors and results from the CECL model will need to be applied to other models, and results will also need to be integrated into the overall analysis and budgeting.
continue reading »