NEW BLACK BOOK WHITE PAPER HELPS LENDERS UNDERSTAND NEW CECL REQUIREMENTS

Paper Offers Actionable Steps To Leverage CECL as a Competitive Advantage

Black Book, a division of Hearst that provides industry-leading used vehicle valuation and residual value forecast solutions, announced today a new educational white paper: “Analytic-Driven Data Helps Auto Finance Lenders Mitigate Risk & Become CECL Compliant”. Click here to download the white paper.

The Financial Accounting Standards Board (FASB) is looking to ensure that financial institutions have solid measures in place to ensure they have appropriate reserves for any future losses based on the life of each auto loan. As a result it has instituted its new Current Expected Credit Loss model (CECL). This will require higher levels of loan loss reserves and lead to changes in lending practices and portfolio management. It will also require a significant amount of data capture, analysis and modeling to meet the implementation deadline of December 15, 2019.

With CECL’s requirement that lenders perform life-of-loan loss forecasting, as soon as a lender says yes to a loan, it must begin reserving for potential losses on that loan. This means each lender must have a much better understanding of the borrower’s financial condition, as well as accurate historical and residual collateral insight, when they make the loan.

The Black Book white paper discusses how auto finance lenders have the opportunity to rely even more on having the most accurate and up-to-date credit and collateral data on their portfolios in order to meet these new requirements.

“Auto finance companies can leverage this opportunity to convert this compliance need into a competitive advantage,” said Anil Goyal, Executive Vice President, Operations for Black Book. “By leveraging granular data and building loan-level analytic models, auto lenders will have a better understanding of risks and improve return on capital.”

 The white paper also addresses the following topics:

  • ·       Probability of default methodology
  • ·       Estimations of probability of default and loss given default with model samples
  • ·       CECL modeling and data readiness
  • ·       CECL’s Effect on Loan Strategies
  • ·       How varying economic scenarios can impact lender strategies for CECL

Click here to download the new white paper: “Analytic-Driven Data Helps Auto Finance Lenders Mitigate Risk & Become CECL Compliant”.

About Black Book

Black Book® is best known in the automotive industry for providing timely, independent and precise vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. Since 1955 Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst, and the company maintains offices in Georgia, Florida, and Maryland as well as the Canadian Black Book in Toronto. For more information, please visit BlackBook.com or call 800.554.1026.

Views: 60

Comment

You need to be a member of DealerELITE.net to add comments!

Join DealerELITE.net

Latest Activity

Simon Hopes posted a blog post

Top Five Tips for auto Intranet Setup

Setting up an intranet can be a daunting process for any business. After all, no matter how…See More
4 hours ago
Terrel Watkins posted a blog post
18 hours ago
Joel posted a blog post

Why are Fridays Good?

For some, this is Good Friday. For others, it is TGI Friday (I don't mean the restaurant).What's…See More
yesterday
Sally Whitesell posted a blog post
yesterday
Dave Anderson posted a blog post

Leading with Level One Accountability

There are four levels of accountability in any organization, and within the departments of that…See More
Friday
Scot Eisenfelder posted a blog post
Friday
Jim Flint posted a blog post
Friday
Cynthia Madison posted a blog post

Important considerations before buying your first car

Pollution became a matter of great importance in the past few years, considering the impact it has…See More
Friday
Bill Wittenmyer posted a video

Freebie Friday: How to Combat Flat Vehicle Sales

Bill Wittenmyer explains why dealerships shouldn't be afraid of slowing vehicles sales and the actions they can take to remedy that in this episode of Freebi...
Friday
Andy Church posted a video

Profit By Action Quick Tip: Prospecting

Sales people are not order takers. It is your responsibility to understand that your sales process starts with PROSPECTING, not the meet and greet. This Prof...
Friday
Yogesh Sashi posted blog posts
Friday
Jeff Cowan posted a blog post

Write Service Podcast: Episode 64- Holidays, Events, and Excuses

This week, Jeff covers three points about this maximizing this upcoming season of holidays and…See More
Thursday
Jeff Giere posted blog posts
Thursday
Brett Sutherlin posted a video
Thursday
Stella Lemon posted a blog post

Bike Information with Bike Owner Details

Check bike information and registration details with Owner Details, RTO, Insurance, Make model,…See More
Thursday
John Sternal posted a blog post

Swapalease.com Announces Its Top Vehicles for The Summer

Users Voted on What They Believe are the Top Vehicles for the Summer Months Based on…See More
Wednesday
Damian Boudreaux posted a blog post
Wednesday
Michia Rohrssen posted a blog post
Wednesday
Timmy D. James posted a blog post
Wednesday
Erik S. Nachbahr posted a video

Protect Your Dealership from Phishing

In this video blog, Erik Nachbahr shares why it is important to protect your dealership from phishing attacks.
Wednesday

Get Newsletter

© 2019   Created by DealerELITE.   Powered by

Badges  |  Report an Issue  |  Terms of Service