ALEXANDRIA, Va.–NCUA has released the December 2024 Update of its Simplified CECL Tool.
The update provides the latest life-of-loan—or Weighted Average Remaining Maturity—factors.
For credit unions currently using the Simplified CECL Tool, the December 2024 release is provided to facilitate calculating the credit loss expense—or provision for credit losses—for the period that ends Dec. 31, 2024, NCUA said.
The Simplified CECL Tool was developed primarily for small and non-complex credit unions as an option for estimating the allowance for credit losses on loans and leases, the agency noted.
“Credit unions with assets of less than $10 million may also consider using the Simplified CECL Tool, as it could provide a more accurate measure of credit losses and serve as an additional tool for loan portfolio management,” NCUA said.
To get the latest version, visit The Simplified CECL Tool page and click on “Download the Latest Simplified CECL Tool.” There are also Frequently Asked Questions, the User Guide, and the Model Development Document located on The Simplified CECL Tool page.
NCUA updates the Simplified CECL Tool quarterly to enable credit unions to use the Tool when closing their books and submitting their quarterly NCUA Call Report.
For more information on CECL, please visit CECL Resources page.