NCUA Updates Simplified CECL Tool for Loans and Lease Losses as of September 30 | 2022-10-10


The NCUA released the first update to the simplified CECL tool to allow credit unions to test and calibrate the tool to estimate the allowance for credit losses on loans and leases as of September 30, 2022. The update includes the latest loan life, or Weighted Average Remaining Maturity Factors, as well as minor enhancements.

Although use of the simplified CECL tool is not mandatory, the NCUA’s goal is to provide credit unions and their accountants and auditors with sufficient time to test, evaluate and acclimate to the tool. before the effective date of the CECL. For most credit unions, CECL will come into effect on January 1, 2023.

With future quarterly updates to the simplified CECL tool, a credit union can use the tool to estimate its allowance for credit losses on loans and leases. Updates will be provided in a timely manner each quarter for a credit union to incorporate into its book closing and to submit the NCUA appeal report.

For the latest version, please visit The simplified CECL tool and click on “Download the latest simplified CECL tool”. To facilitate your assessment of the simplified CECL tool, please see Frequently Asked Questionsthe Manualand the Model development document located on the simplified CECL tool page.

Visit NCUA CECL Resources Page for more information.


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