The NCUA issued the September 2024 update of its Simplified CECL Tool, which includes the latest life-of-loan factors as well as refinements on the factors for unsecured credit cards loans, payday alternative loans, and leases receivable. For credit unions currently using the Simplified CECL Tool, the new release helps determine the credit loss expense—or provision for credit losses—for the period that ends Sept. 30, 2024.
NCUA primarily developed the tool as an option for small and non-complex credit unions in estimating the allowance for credit losses on loans and leases. Credit unions with assets of less than $10 million could also use the tool for a more accurate measure of credit losses and enable stronger feedback for loan portfolio management.
However, the NCUA’s Simplified CECL Tool FAQs indicates the tool could potentially be used by larger credit unions.
To get the latest version, credit unions can visit The Simplified CECL Tool page and click on “Download the Latest Simplified CECL Tool.” For more information on CECL, access the NCUA’s CECL Resources page.
