CECL in the Time of Coronavirus

It was the best of times… it was the worst of times. And that was just Q1 2020.

CECL was implemented with an “as of ” date which was characterized by 3.5% unemployment, consistently greater than 2% GDP growth, and extremely low or even near-zero loss experience for many loan products. By March 31, spurred by “stay at home” orders which forced many businesses (those which were not deemed “essential”) to shut their doors and lay off or furlough employees, U.S. unemployment…