abrigo.com WHAT’S IN A NAME? THAT WHICH WE CALL A ROSE BY ANY OTHER NAME WOULD SMELL AS SWEET ... - WILL S., D.1597 From the beginning, lenders were warned the transition to CECL wasn’t going to be easy. The FASB declared it both when they announced CECL and when they issued the CECL Guidance. The regulators backed them up. The allowance accounting standard change from an incurred loss model to a current expected credit loss model essentially involves changing from estimating based on losses already experienced to estimating based on losses throughout the life of loans, including what is reasonable and supportable to expect in the future. That’s a whole new ballgame. GETTING STARTED “The Guidance was released in June 2016 and by November we had made the decision

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