Home / Events and Media / Press Releases

Press Releases

LoanScorecard Launches SimpleCECL
Technology solves CECL challenges for all size financial institutions,
provisioning reserves at time of origination

Contact: Campbell Lewis Communications
Jessica Ruiz-Krout
212.995.8058
jessica@campbelllewis.com

 

IRVINE, California (November 15, 2018) LoanScorecard™, the leading provider of non-agency automated underwriting systems (AUS), today announced the launch of SimpleCECL, a solution providing loan-level analyses for Current Expected Credit Loss (CECL), provisioning reserves at the time of origination.

Issued by the Financial Accounting Standards Board (FASB), CECL is the new “expected loss” accounting model for estimating the Allowance for Loan and Lease Losses (ALLL). It replaces the current “incurred loss” model and goes into effect in 2020 for SEC-filing institutions and 2021 for all other financial institutions.

SimpleCECL uses the credit and prepayment model of Andrew Davidson & Co., Inc. (AD&Co), a provider of risk analytics and consulting, and, through LoanScorecard technology, provides a cost-effective loan loss calculation for all size financial institutions.

The user-friendly solution provides loan-level CECL analysis to ensure accuracy and compliance for all loans originated, including those with a policy exception. SimpleCECL forecasts loan performance in various scenarios. The stress testing provides results in three scenario probabilities—a base case, an adverse case, and a severe case. SimpleCECL provides the exact calculation for loan loss reserves under the new regulation.

“As soon as a loan closes, before the borrower even makes their first payment, financial institutions must set aside loan loss reserves, but manually calculating that number is challenging, especially for banks and credit unions with limited resources,” said Ben Wu, executive director at Loan Scorecard. “Even the most CECL-ready organizations have yet to solve this impact on the balance sheet. Without provisioning at the time of origination, a bank is out of compliance and reserves are inaccurate. SimpleCECL solves this challenge, providing an accessible solution for all banks and credit unions with an automatic calculation for loan loss reserves to ensure CECL compliance.”

About LoanScorecard

LoanScorecard™ the leading provider of non-agency automated underwriting, loan-loss solutions and borrower point-of-sale designed to meet today's regulatory challenges and capitalize on market opportunities. LoanScorecard helps institutions address CFPB regulations, compliance, fair-lending, and supports banks and credit unions preparing for the upcoming impacts of CECL. For more information, visit loanscorecard.com or call 800-617-0892.

About LoanScorecard
Company Overview
Meet the Team
Products
Portfolio Underwriter
Portfolio Producer
Pricer1
QM Findings
FHA Findings
Events/Media
Events Overview
Tradeshows
Press Releases
Articles and Videos
Contact LoanScorecard
Call: 1-800-617-0892
3240 El Camino Real, Suite 220
Irvine, CA 92602
Contact Form