NCUA released the first update of the Simplified CECL Tool to enable credit unions to test and calibrate the tool to estimate the allowance for credit losses on loans and leases as of September 30, 2022. The update includes the latest life-of-loan, or Weighted Average Remaining Maturity factors, as well as minor enhancements.

Though use of the Simplified CECL Tool is not required, the NCUA’s goal is to provide credit unions and their accountants and auditors enough time to test, evaluate, and become acclimated with the tool before CECL’s effective date. For most credit unions, CECL will become effective January 1, 2023.

With future quarterly updates of the Simplified CECL Tool, a credit union can use the tool to estimate its allowance for credit losses on loans and leases. Updates will be provided timely each quarter for a credit union to incorporate into closing its books and for submitting the NCUA’s Call Report.

To obtain the latest version, please visit The Simplified CECL Tool page and click “Download the Latest Simplified CECL Tool.” To facilitate your evaluation of the Simplified CECL Tool, please review Frequently Ask Questions, the User Guide, and the Model Development Document located on the Simplified CECL Tool page.

Visit NCUA's CECL Resources page for more information.