With over half the year gone and Current Expected Credit Losses (CECL) audits looming around the corner, if your credit union hasn’t already found a CECL partner, it’s not too late to find a match – or maybe you’re looking for something more. A CECL partner can help your credit union ensure you’re meeting standards and are audit ready but should also help you leverage what is tantamount to the most important estimate on your balance sheet for more insights.
In this blog, we’ll explore some green flags to look for when considering a CECL partner for your credit union.
Cost effective and value-added services
Obviously, your credit union’s budget is going to play a large role in which CECL vendor you choose to partner with. But beyond just ensuring the price tag is in the right range, make sure you’re also looking at how the price of the vendor you’re considering compares with vendors offering a similar service. They should fall within the same range, and, ideally, provide more overall value than the competitors. More value could mean either they provide additional services included in the overall price – such as loan portfolio analysis and more frequent refreshes – or that their service generally performs better. They may even offer to buy you out of your current annual CECL contract, saving you time and money.
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