FASB Drafting Changes to the Allowance for Credit Losses

FASB has been diligently working on a response to the credit crisis by issuing a new standard for the allowance for credit losses. Many changes are in process that will affect they way everyone estimates the losses on loans. This whitepaper give you a peak at the changes FASB is proposing.

Impairment - Just the Facts!

In this whitepaper we try and boil down the facts from FASB and the regulators about impairment issues. Since FASB is in process of rewriting the process for calculating the allowance for loan losses, we thought a little refresher on the facts as they stand now would be good. Our next whitepaper will dissect the new exposures by FASB and the IASB concerning measuring impairment and where its headed.

ACL Junior Liens

The regulators have issued interagency guidance on junior liens. This whitepaper discusses how institutions need to modify their methodology for junior liens. The regulators have seen additional risk in this are and are requiring institutions to establish consistent risk methodology to evaluate the risk of loss on these loans.

NCUA Adopts New IRPS on Loan Modifications (TDR's)

The NCUA has modified the credit union regulations on loan modifications to adhere to GAAP as well as providing a more consistent regulation with the other banking regulators. The NCUA removed some difficult reporting requirements, added enhanced non accrual rules and has required some policy and procedural changes for all federally insured credit unions.

New Guidance on TDR's from Regulators

The OCC issued guidance on applying the new TDR standard. While this is specifically for OCC regulated banks, the guidance is very important in how it defines best practices and how TDR's should be treated on an ongoing basis.