Scope sheet
finbryn.com
Credit loss and fair value
CECL allowance model support for community lenders, credit unions and fintech lenders
Finbryn provides CECL allowance model support for community lenders, credit unions and fintech lenders, building the loss-rate or probability-of-default model under ASC 326-20 and documenting it with the revised interagency policy statement in view (Federal Register, April 27, 2023). Management owns the allowance, and someone who did not build the model validates it.
What is included
- Loan pool segmentation and method selection memo
- Loss-rate, WARM, vintage or probability-of-default model built from your loan tape
- Qualitative adjustment framework with the evidence behind each factor
- Allowance roll-forward, back-test and board reporting package
- Model documentation written for a reviewer who did not build the model
The process
- 1.
Receive the loan tape and history
A core system export of balances, terms, ratings, delinquency and charge-offs for every period the system holds, plus the current allowance policy.
- 2.
Segment and choose a method
A memo proposes pools and a method for each, with the reason, so management and the board can accept or change them.
- 3.
Build and tie out
The model runs from the tape and ties to the general ledger by pool, with exceptions listed.
- 4.
Set the qualitative register
Each adjustment is documented with its evidence, size and review date.
- 5.
Package the board report
Allowance by pool, roll-forward, back-test and sensitivities, drafted for the CFO to edit.
- 6.
Hand over for independent review
The model, inputs and documentation go to the reviewer the institution has engaged, and we answer questions without changing the model during the review.
Software
Microsoft Excel, Python
Pricing
Scoped per engagement from the number of loan pools, the quality of the loan tape and the reporting calendar. It runs separately from the monthly tiers on the /us/pricing rate card, and the fee is confirmed in writing before model work starts.
Finbryn is a brand of Northlane Solutions Inc., a Delaware corporation.
Reviewed October 2026