April 28, 2017 / Press Release
Charlotte, NC – On April 25th, Mortgage Industry Advisory Corporation (MIAC), hosted the second in a series of private events to launch its CECL process rollout, in uptown Charlotte, NC at “Fahrenheit.” MIAC was joined by its core constituency of clients and strategic partners.
Effectively, the FASB has formalized analytical methods that MIAC has been practicing with clients for over a decade. 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 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, and to compare performance to industry medians: which comprise our CECL Solutions suite.
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, and investment funds. Dean C. Hurley, a Managing Director with wide-ranging responsibilities, presented on MIAC’s implementation of FASB’s revised standard, and attendees took the opportunity to discuss MIAC’s process for determining a CECL allowance.
Mr. Hurley’s comments concluded, “MIAC is uniquely qualified to help clients with CECL because our Basel-compliant methodology for determining life expected losses has been at the core of what we do since we were founded over 25 years ago.”
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.