Credit unions now have access to the NCUA’s latest update of its Simplified CECL Tool. The December 2024 update provides  the latest life-of-loan factors. Credit unions currently using the Simplified CECL tool can use the new release to facilitate calculating the credit loss expense – or provision for credit losses – for the period that ended on Dec. 31, 2024.

The Simplified CECL tool is designed primarily for small and non-complex credit unions to estimate the allowance for credit losses on loans and leases. It’s an option for credit unions with assets of less than $10 million to take measure of credit losses and for loan portfolio management. Larger credit unions should visit the Simplified CECL Tool FAQs for more information on using this tool.

The latest version is available on the Simplified CECL Tool page by clicking on “Download the Latest Simplified CECL Tool.” For more information on CECL, access the NCUA’s CECL Resources page.