Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
675,558+7,403
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
6.77%-0.01
FintechMortgage

LoanScorecard launches new solution

SimpleCECL utilizes Andrew Davidson & Co’s credit and prepayment model

LoanScorecard, a provider of non-agency automated underwriting systems, recently announced it launched a solution designed to provide loan-level analyses for current expected credit loss provisioning reserves.

The solution, SimpleCECL, is issued by the Financial Accounting Standards Board as the new “expected loss” accounting model for estimating the allowance for loan and lease losses, the company said in a press release.

Through LoanScorecard’s technology, SimpleCECL will utilize Andrew Davidson & Co’s credit and prepayment model, providing cost-effective loan loss calculations for financial institutions.

“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,” Loan Scorecard Executive Director Ben Wu said.

“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,” Wu continued. “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”

SimpleCECL will replace the current “incurred loss” model and goes into effect in 2020 for SEC-filing institutions and 2021 for all other financial institutions.

Earlier this year, the company partnered with Deephaven Mortgage to launch IDENTI-FI AUS, which simplifies the origination and qualification processes for Non-QMs. You can read more about the solution here.

Most Popular Articles

Latest Articles

Freddie Mac’s Donna Spencer on their Servicing Excellence initiative 

On today’s sponsored episode, Editor in Chief Sarah Wheeler talks with Donna Spencer, vice president of servicer relationship and performance management at Freddie Mac, to discuss their new Servicing Excellence initiative and the benefits for their partners. Related to this episode: Related to this episode: Servicing Excellence https://sf.freddiemac.com/articles/insights/servicing-excellence Forging a New Path: The Future of […]

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please