As the required implementation of the current expected credit losses (CECL) model draws near, many institutions are focused on the mechanics of building a satisfactory model – a critical first step in meeting regulatory expectations. In addition to model development, management will need to determine satisfactory supporting documentation that is “reasonable and supportable.” Defensible documentation must be developed in support of assumptions and variables used or considered for both the qualitative and quantitative elements of your CECL model. Since the CECL model will differ from the former incurred-loss model, management has an opportunity to overhaul the process for documenting the allowance methodology. This webinar will link the current expectations for documenting the allowance model with new CECL documentation considerations.
- Overview of current ALLL documentation expectations
- Includes weaknesses identified in methodology statements and narratives based on today’s expectations and the need to correct them as the CECL deadline approaches
- The evolution of “reasonable and supportable” documentation
- Three important groups that will use your CECL supporting documentation and their expectations
- Supporting documentation differences between the current ALLL rules and new CECL expectations
- Policies, processes, and controls changes from an incurred-loss model to the CECL model
- TAKE-AWAY TOOLKIT
- Employee training log
- NEW – Interactive quiz
WHO SHOULD ATTEND?
This informative session will benefit staff responsible for the development of the ALLL (current approach) and development of the allowance for credit losses (replacement allowance under CECL). Senior management and directors will also gain insight from this presentation.
SPEAKER: Aaron Lewis, Young & Associates, Inc.
Aaron Lewis is a consultant in the lending and compliance divisions of Young and Associates. As a consultant, he assists clients by performing loan reviews and ALLL methodology reviews. In addition, he has performed reviews in lending compliance and quality control. Prior to joining Young and Associates, Aaron was employed by a community bank in southeast Michigan for eleven years. He worked his way through various facets of the operation from frontline service, to branch management, to Vice President, Credit Administrator. He also has secondary market, compliance, and asset quality experience. Aaron holds a Bachelor’s in finance from Michigan State University and graduated from the Graduate School of Banking, University of Wisconsin.