The latest life-of-loan factors for credit unions are provided in the latest update of the federal regulator’s tool for calculating expected credit losses, the agency said Monday.
The National Credit Union Administration (NCUA) said the June 2025 updated “simplified tool” for credit unions to use in calculating current expected credit losses (CECL) facilitates calculating the credit loss expense on loans and lease for the period ending June 30. The updated portions are known as the Weighted Average Remaining Maturity (WARM) factors.
Monday’s update is the regular, quarterly change conducted by the agency. The quarterly change facilitates the filing of call reports, the agency said.
The tool is designed for use mostly by small and “non-complex” credit unions (those with $500 million or less in assets). The agency said the tool is an option for estimating the allowance for credit losses on loans and leases. “Credit unions with assets of less than $10 million may also consider using the Simplified CECL Tool, as it could provide a more accurate measure of credit losses and serve as an additional tool for loan portfolio management,” NCUA said.
Simplified CECL Tool Updated for June 2025
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