What are Some of the Pros and Cons of Loan Level versus Cohort-Level or Portfolio-Level Models for CECL?
In this video, Cris DeRitis reviews the advantages and disadvantages of the different type of models that are acceptable for CECL. A portfolio-level approach is a simpler modeling method, but lacks granularity.
In this video, Cris DeRitis reviews the advantages and disadvantages of the different type of models that are acceptable for CECL. A portfolio-level approach is a simpler modeling method, but lacks granularity. Loan-level models are more granular, but more complex and costly. Vintage cohort-level models are sensitive enough to capture economic changes, but not as complex and costly as loan-level models.
Related Articles
Are We in a Housing Bubble?
The single-family market is hot, with house prices surging in much of the country. Is the market a bubble?
Moody's Analytics & Raymond James In Conversation: The Year Ahead - An Update on Mortgages
Join us for the 4th webinar in our series: Moody’s Analytics & Raymond James in Conversation where we will discuss the outlook for mortgages and their impact on banks, credit unions, non-banks, and mortgage lending.
Moody's Analytics & Raymond James In Conversation: The Year Ahead - An Update on Fintech & Student Lending
Join us for the second webinar in our series: Moody’s Analytics & Raymond James in Conversation where we will discuss the outlook for the fintech and student lending and their impact on banking / lending.
Briefing on the U.S. CCAR & European Stress Test Scenarios
Following last week’s release of the Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR) scenarios for 2021, join Mark Zandi and the Moody’s Analytics team as they discuss the CCAR scenarios.
U.S. Macro & Regional Economic Outlook
While the new year has gotten off to a difficult start, it should end well.
Moody's Analytics & Raymond James In Conversation: The Impact of COVID-19 - A Year in Review
The year end wrap-up of our webinar series: Moody’s Analytics & Raymond James in Conversation where we discussed the impact of COVID-19 on the economy, mortgages, commercial real estate and U.S. autos.
Pandemic Economics: How COVID-19 Is Shaping American Household Behavior
In this webinar, Mark Zandi and the Moody’s Analytics team, plus special guest John Leer from Morning Consult, examine how U.S. households are coping and how their behavior may change post-pandemic.
CECL and CCAR Updates: COVID-19 Effects, and the Future of Risk
The only constant in 2020 is change. Risk managers (and everyone else) will want to buckle up. The rest of the year will be a bumpy ride.
Pandemic Update of the Fed's Stress Test
In this webinar, we will assess the three new economic scenarios provided by the Fed.
Moody's Analytics & Raymond James in Conversation: The Impact of COVID-19 on U.S. Municipal Securities– An Update on the U.S. Economy
In this webinar, Terry Robertson, Head of Fixed Income Research and Rich Szalkowski, Senior Municipal Credit Analyst at Raymond James, and Cris DeRitis, Deputy Chief Economist and Dan White, Director of Public Sector Research at Moody’s Analytics will discuss the Municipal Market and the impact of COVID-19.
