AFSA Asks Congress for CECL Relief
The American Financial Services Association (AFSA) yesterday, March 24, asked in a comment letter to congressional leadership that they include CECL relief for depository and non-depository financial institutions in any relief package.
"The fundamental changes made by FASB’s CECL standard to the industry’s long-standing accounting practices could have a significant impact on the cost and availability of these products, especially for low and moderate-income consumers," AFSA President & CEO Bill Himpler wrote in the letter. "By requiring financial institutions to recognize and reserve for the full estimated credit loss on the loan at origination, CECL injects uncertainty and unpredictability in credit loss decisions and creates pro-cyclical dynamics that could accelerate an economic downturn and impede growth."
Read the full letter here.
March 25th, 2020
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