QuantyPhi Launches New CECL Validation Service to Support Credit Union Compliance and Accuracy
QuantyPhi, a balance sheet optimization CUSO for credit unions, is pleased to announce the launch of its new CECL Validation service. Designed to ensure credit unions’ compliance with the Current Expected Credit Loss (CECL) accounting standard, the service provides a comprehensive review and validation of CECL processes to enhance accuracy, reliability, and regulatory alignment.
“Navigating the complexities of CECL compliance can be a significant challenge for credit unions,” said Adam Stone, President. “QuantyPhi’s CECL Validation service delivers the expertise and insights credit unions need to ensure their CECL processes are robust, reliable, and fully compliant with regulatory expectations.”
QuantyPhi’s CECL Validation service focuses on six key areas critical to successful CECL implementation:‘
1. Review of Risk Factors
QuantyPhi conducts an in-depth analysis of the risk factors affecting a credit union’s portfolio, including historical loss data, economic conditions, and borrower characteristics, ensuring all potential risks are identified and assessed.
2. Regulatory Compliance
With a commitment to staying up to date with the latest regulatory guidance, QuantyPhi ensures that CECL processes align with current requirements, helping credit unions navigate complex compliance landscapes with confidence.
3. Governance
Effective governance is essential for CECL success. QuantyPhi reviews the governance framework, roles, and internal controls to ensure the support and accuracy of CECL calculations.
4. CECL Methodology
QuantyPhi evaluates credit unions’ modeling approaches, assumptions, and data inputs to confirm methodologies align with best practices and industry standards.
5. CECL Policies and Procedures
QuantyPhi assesses policies and procedures to confirm they are comprehensive, well-documented, and consistently applied, providing recommendations for further improvements.
6. Validation of CECL Calculation
QuantyPhi performs a thorough review of CECL calculations, verifying accuracy and reasonableness. The process includes testing model inputs, reviewing individual non-pooled loans, and evaluating model vendor processes to identify discrepancies and deliver actionable insights.
With this service, credit unions can trust that their CECL processes are comprehensive, compliant, and effective, supporting their ongoing financial stability and operational success.
“At QuantyPhi, we understand the unique challenges credit unions face with CECL implementation,” added Stone. “Our tailored validation solutions are designed to simplify the process and empower credit unions to achieve compliance with ease while enhancing performance.”