Things have been good economically for so long that it’s hard to imagine a time when they weren’t. Even in the face of a devastating global pandemic, asset prices performed well and delinquencies and defaults have trended in the right direction. As a result, demand continued to outpace supply. Demand…
Jon CrossaMarch 15, 2022
A frequent criticism of the Allowance for Credit Losses is the disconnect created between the recognition of income and expense. Financial institutions are forced to record life of loan credit loss expense at origination, whereas income is recorded as it is earned. This deviates from the traditional ‘matching principle’ that…
Dinny LechmanMarch 15, 2022
The NCUA will soon be releasing their Supervisory Priorities for 2022. Based on past priorities, evolving NCUA guidance, and the current economic environment here is what we think will be most important to examiners in 2022. Allowance for Loan and Lease Losses AND Current Expected Credit Losses (CECL) Moving into…
Dinny LechmanJanuary 5, 2022
The pandemic has impacted credit unions in many ways, some expected and some unexpected. While uncertainties in the economy remain, like the threat of new COVID variants, inflationary concerns affecting interest rates and supply chain issues disrupting markets, some broad trends emerge as we enter into a new year. Mortgage…
Dinny LechmanDecember 3, 2021
Since the Financial Accounting Standards Board (FASB) announced the transition to Current Expected Credit Losses (CECL) on June 16, 2016, credit unions have been working to prepare for the implementation deadline on January 1, 2023 (but December 31, 2022 for all intents and purposes). We’ve received a lot of questions…
Dinny LechmanNovember 11, 2021
Dan Price, President at 2020 Analytics answers three questions asked by Lauren Culp, CUInsight Publisher & CEO. What challenges do you see credit unions are facing now and for 2022? What are the big questions credit unions are asking 2020 Analytics? How can credit unions use data to better serve…
Dinny LechmanNovember 5, 2021
While credit union mergers and acquisitions (M&A) are relatively uncommon occurrences—in 2020 there were just 136 credit union mergers and just 5 bank acquisitions by credit unions—they are high-dollar agreements with a lot of room for ambiguity and interpretation. When credit unions are being merged and acquired, the terms are…
Megan HornOctober 7, 2021
2020 Analytics is proud to be a strategic partner with VyStar Credit Union, featured in the October 2021 Issue of BOSS Magazine, “The Making of a Movement”. “We look for fintech partners that provide a solution to problems faced in our industry in a unique and valuable way.” – Jenny…
Dinny LechmanSeptember 28, 2021
Credit scores and consumer spending habits have changed since the beginning of—and even throughout—the COVID-19 pandemic. FICO scores are up, credit card balances and delinquencies are down, and many consumers are refinancing or paying down debt thanks to low interest rates, stimulus money, and assistance programs. A transmissible virus has…
Dinny LechmanSeptember 21, 2021
After a year since COVID struck the U.S., FICO credit scores are up—a lot. For the past decade, the average FICO score has grown at around one point per year. In 2020, despite record unemployment, the average FICO score in the U.S. climbed seven points—from 703 in 2019 to 710…
Megan HornSeptember 8, 2021