Insights
Mortgage Servicing Right (MSR) Value: The Impact of Float Income
A lesser-known driver of the increase in recent MSR values relates to earnings from float income.
Mortgage Rates Fuel Rise in Mortgage Servicing Right (MSR) Values
The rise in mortgage rates that occurred in 2022 has led to a significant increase in the value of mortgage servicing rights (“MSRs”). However, the increases are not spread evenly across all vintages.
Wilary Winn in the Wall Street Journal
Frank Wilary, Principal at Wilary Winn, recently spoke to the Wall Street Journal for their July 6, 2023, article discussing the impacts of rising interest rates on U.S. ...
Recent Developments Related to the Accounting for Acquired Assets
FASB continues to work on refining the interaction between CECL and purchase accounting.
States Push Back on Credit Unions Acquiring Banks
A growing number of states are blocking the ability of credit unions to buy banks amidst competitive concerns.
TDR Accounting Not Required for CECL
In March 2022, FASB eliminated TDR accounting for financial institutions that have adopted CECL.
Significant Improvements to Accounting for Acquired Assets
In February 2022, FASB decided to apply PCD accounting to assets obtained in mergers and acquisitions for institutions that have adopted CECL. This avoids the double counting of credit losses for performing loans. In addition, FASB indicated that revised accounting could be applied to the purchases of seasoned loans.
Goodwill Amortization
FASB continues to deliberate on accounting for goodwill including testing it for impairment versus amortizing it over time. It appears it is leaning toward the required use of an amortization model.
OCC Provides Insights Regarding CECL Implementation
The magnitude of the changes required by CECL have created uncertainty regarding how to implement it.
The Office of the Comptroller of the ...FMS Forward Magazine – Mergers & Acquisitions Article
Wilary Winn was recently interviewed for an article published in the July/August 2018 issue of Forward, a publication of the Financial Managers Society.
CECL Results
With all the ado being made about the CECL implementation – the two most important questions remain:
- How will it actually affect my existing allowance; and
- How can I use the information generated ...
A Valuation Firm Reads CECL
As we all well know, our beliefs about the world are shaped by our experiences.
Like many of you, we have read numerous white papers on CECL and participated in many presentations on the subject. Nearly all have ...FEATURED
Credit Union Merger Results Through 2023 [White Paper]
This June 2024 white paper, an update to our 2021 version, provides readers with an overall perspective of the merger marketplace as well as valuation metrics from the work that Wilary Winn has performed.
WHAT OUR CLIENTS SAY
Michael Harden, Executive Vice President & CIO, F&A Federal Credit Union – Monterey Park, CA
Wilary Winn’s expertise is a critical component in our risk assessment balance of maintaining current income coupled with appropriate and...