As part of our work, we obtain the data and assumption inputs (prepayments, default rates, loss severity rates, qualitative and environmental factors) used to produce our client’s most recent CECL reporting package. We input the data and assumptions into our own CECL model to ensure our client’s model is producing expected category-level outputs consistent with the category-level inputs.

We benchmark the CECL results to others in the industry and test for reasonability. As a final step, we summarize our work in a report that details our findings along with recommendations for potential improvements. Our goal is to perform an efficient replication of the CECL calculation while providing our clients with actionable modeling improvements and insights to help them better understand and manage credit risk in both their existing loan portfolio and in future loan origination strategies.