Thursday, August 31, 2023
CECL doesn’t have to stress you out. The Level1 model makes CECL easy, allowing for WARM and Roll-Rate methods in calculating your Allowance for Credit Losses (ACL).
Based on historical losses adjusted for expected changes in credit quality over the Weighted Average Remaining Maturity (WARM) of the loans.
L1A's proprietary migration model calculates:
All loss estimates are done at the loan level and are based on monthly cash flows. It’s never too early to consider how you’ll tackle CECL this year: start now on your implementation of ASC-326, and avoid stress down the road.
Our team is hands-on and knowledgeable, reach out to us for any consultation needs or questions.