Deputy Seminar, Denver, CO

WARNING:  This is just an example of one way an institution could perform a CECL loss rate methodology and is by no means the only loss rate methodology for CECL  Each institution has to decide what models or methods makes sense for them and will consider numerous factors such as:  Size and complexity of the institution  Models/methods currently used  Auditor/Regulator/Stakeholder expectations  Data limitations  The standard does not prescribe any specific model or method

Open Pool Loss Rate Models

Freezes all the loans in a segment pool at a particular point in time, then tracks the loss history on those loans over the remaining lives