Choose the CECL Solution that’s
Right for Your Credit Union

Why did Mark H. Smith, Inc develop a CECL solution?

While trying to help our clients learn about CECL(current expected credit loss), we discovered the currently available solutions were just not right for our clients and many other smaller credit unions. Some of the issues we found were:

• Existing CECL solutions were large, complex, cumbersome, and very expensive
• Even solutions that were outsourced required a significant amount of time and credit union resources
• Historical data requirements were substantial, if not unfeasible, for many credit unions

“There has to be an easier, better, simpler, and affordable way to comply,” and MHSI CECL was born.

Mark H. Smith, Inc. developed a solution that addresses all of these issues and is specially designed for our client’s needs at an affordable price.

But with these changes was quality and comprehensiveness affected?

NOT AT ALL

Some of the features in MHSI CECL Include:

• Two different models to compare (Remaining Life or Probability of Default/Loss Given Default) which use both multiple peer data sources and credit union specific data.
  • Remaining Life
  • Probability of Default/Loss Given Default
• CU specific prepayment speeds that can be adjusted for different interest rate environments
• Individual loan level analysis and strong segmentation
• Online functionality allowing for further analysis including:
  • Drill down
  • Segmentation
  • What-if
• Base case and statistical variance alternative comparisons
• Stress testing scenarios

Additional benefits of the MHSI CECL Solution:

• Utilizes State and National comparisons (peer comparisons)
• Uses Nationally recognized data sources and indexes
• Utilizes 15 years of credit union specific call report data
• No software maintenance or data storage requirements
• No setup cost

You don’t need an expensive and difficult CECL solution.

Just the RIGHT one for YOUR credit union.