LoanStreet Launches CECL Reporting Solution for Loan Participations

Financial institutions with participations programs can automatically receive credit loss reserve estimates with greater accuracy, reflecting the true risk profile of their participation portfolio

LoanStreet Inc., the leading platform for loan sharing, reporting and analysis, announced the launch of its Current Expected Credit Loss (CECL) solution, automating the calculation of loss reserves that accurately reflect the risk profile of their loan participation portfolios.

“Our CECL reporting solution enables our customers to analyze their balance sheet at a granular level, helping to account for the full complexity and diversity of their participation portfolio across multiple participation partners and loan products,” said Ian Lampl, co-founder and CEO of LoanStreet Inc. “Not only can we help credit unions reduce the risk of over- or under-reserving, our automated report can alleviate the additional administrative burden to meet these new regulatory compliance standards in the most timely manner.” 

LoanStreet automates the data aggregation process across multiple participation partners using the same Weighted Average Remaining Maturity methodology used by the NCUA, allowing balance sheet managers to recalculate CECL reserves on a monthly cadence and avoid quarter-end surprises. 

LoanStreet’s CECL analytics reporting solution:

Reduces the risk of under- or over-reserving by carrying out Expected Credit Loss (ECL) calculations specific to each participation partner and product type within a participation portfolio

Provides month-over-month ECL estimates, thereby reducing quarter-over-quarter variability

Eliminates data-entry and calculation errors from CECL participation calculations through automation

Delivers a CECL report on-demand that can be easily integrated into any existing internal workflow

Requires no incremental effort for existing LoanStreet customers, while off-platform loan participation portfolios can be added easily