What does CECL mean for TDRs?

In this episode, we are joined by Mike Umscheid, CEO of ARCSys. Mike is an expert in everything CECL and will be touching on what CECL means for Troubled Debt Restructuring (TDR). There have been many changes with TDRs since FASB issued an accounting standards update eliminating the model. Join this conversation to expand your knowledge on TDRs and to prepare for what is to come with CECL.

Key Takeaways:

  • [02:25] A TDR (loans that have been modified) is automatically an impaired loan.
  • [05:42] Most people are going to take their current TDRs and they are going to determine they are modified and start doing some disclosure requirements on them. The easiest thing is going to be to treat them all as modified loans.
  • [10:24] Credit unions will often help borrowers by extending the payment term or lowering the interest rate and sometimes they do a combination. There are different ways you can modify a loan for a borrower that is having difficulties.


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