January 18, 2017 / Press Release
New York, NY – On January 10th, Mortgage Industry Advisory Corporation (MIAC), hosted the first in a series of private events to launch its CECL process rollout, in Midtown, NYC.
CECL, or Current Expected Credit Loss, and other FASB pronouncements introduced since the crisis, differ from precedent in that the new standards for both reserving and capital adequacy are forward-looking: based upon expectations of future cash flows under plausible scenarios, rather than on historic losses to date.
MIAC’s CECL Launch event was attended by a distinguished group of senior executives from amongst our clients, which include prominent mortgage banks, multifamily lenders, hedge funds, and regulatory entities. Dean C. Hurley, a Managing Director with wide-ranging responsibilities, presented on MIAC’s implementation of FASB’s revised standard. Attendees took the opportunity to discuss MIAC’s process for determining a CECL allowance with our valuation practice specialists.
Effectively, the FASB has formalized analytical methods that MIAC has been practicing with our clients for over a decade, so we are uniquely well-positioned to help our clients adapt to the challenges presented by CECL. MIAC has developed tools and processes to manage regulatory and reporting requirements on behalf of the world’s largest financial institutions, to research historical loan files where needed, and to compare performance to industry medians: our CECL Solutions suite.
Mr. Hurley will review our approach to CECL’s parameters in more detail at the annual MIAC Secured Financing Conference on March 29th – 31st at the Arizona Biltmore. Based on the robust success of the CECL launch event, MIAC will hold additional CECL receptions across the U.S., beginning in Charlotte, NC, on Tuesday, April 25th.
MIAC’s co-founder, Paul Van Valkenburg, commented, “As institutions focus on implementing solutions for CECL over the coming years, they will look to employ industry best practices for measuring current expected credit losses. MIAC is proud to continue to lead the way, and to discuss both our proprietary tools and methodology openly at these and other events.”
Learn more about MIAC’s CECL Process
For over 27 years, Mortgage Industry Advisory Corporation (MIAC) has been the preferred destination for sophisticated mortgage-industry participants. In addition to providing discrete whole loan brokerage services, MIAC offers third-party mortgage asset valuations, secondary market hedge advisory solutions, as well as state-of-the-art behavioral models.
MIAC Analytics™ is the most sophisticated mortgage pricing and risk management software suite available. The MIAC Analytics™ suite includes VeriFi™, DR-Surveillance™, MIAC CORE™, and Vision™ to address FASB’s new Current Expected Credit Loss (“CECL”) requirements with the industries best modeling practices. VeriFi™ is used to support and manage the data quality auditing and review process. DR-Surveillance™ will measure a client’s collateral behavior including historical transition roll rates and Time_in_FCL exit curves; and these client specific behaviors are integrated into MIAC CORE™, our loan level credit loss model embedded in our Vision™ cash flow engine and balance sheet model.