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The NCUA Monday announced the latest updates to its simplified current expected credit losses (CECL) tool. The update includes the latest life-of-loan, or Weighted Average Remaining Maturity, factors, and other enhancements.

The NCUA provides quarterly updates to the CECL tool, enabling credit unions to use it “before its books are closed and it makes its quarterly NCUA call report submission.” The most recent update also includes a reformatted Tab 2 – Individual Basis to facilitate entering data on individually evaluated loans.

While CECL became effective for most credit unions Jan. 1, 2023, the NCUA noted that for institutions that adopted CECL in the third quarter of 2023, the September 2023 Call Report will include the day-one adjustment to undivided earnings and the credit loss expense since the date of CECL adoption.

Credit unions can visit the NCUA’s CECL Resources page for more information.