Dear Hilary – Seeking CECL
April 2015

Dear Hilary,

Just want to ask about Visible Equity’s plan regarding CECL. We would like to start gathering information as soon as possible so preparation and implementation will be less complicated. Please advise.

Seeking CECL


Dear Seeking CECL,

If you are already a client, Visible Equity has you covered! Most of our clients are already sending us the required information for CECL. A lot of the talk around CECL is centered upon the need to gather more data, but this really only applies to institutions that store their data in aggregate (i.e. loss rates for Q4 2014, instead of the individual loans that defaulted.) If you are sending us common data on a regular basis, you should be all set because we store the record level data for you! If you are not currently tracking or sending us your charge-offs or delinquency information, we can consult with you on how to send that over to us.

So what is our game plan? Our methodology for calculating expected losses by probability of default is one approach to meeting the anticipated Accounting Standards Update and is already ready to go. Other approaches, such as the Loss Rate or the Roll-Rate methods, will just require some small changes to our software. Regardless, we are always working on improving and we will be making appropriate changes as soon as the final guidance is released.

To help you prepare for the changes we will hold a series of webinars beginning on 5/22/2015.

The CECL Model and your ALLL
Date: Friday, May 22nd
Time: 11:00am Mountain Time

Happy Late Friday!

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