![](https://investorshub.advfn.com/uicon/732548.png?cb=1669206596)
Monday, August 16, 2021 11:44:41 AM
Later, as you say, it can be released and it shows up as profit on the Income Statement (Benefit for loan losses)
This is controversial, because CECL accounting requires an estimation of future losses, but also some certainty and the loans be individually assessed. But I've seen the former CFO of fannie mae, considering it a general estimation of losses in the portfolio, which is wrong. Anyway, she was fired.
So, theoretically, the estimation of losses is certain, although it's not clear whether the CFOs of all the financial companies are following the rule.
We saw the release of this reserve with FnF: massive provisions set aside during 2008-2011 and as of 2012, every year there was release of the reserve, but in 2020. This is the benefit for loan losses posted by fannie mae. 2012-2021 to date. Annual data, $ in billion 1/9/4/1/2/2/3/4/-0.7/3.3.
Notice that CECL began in 2020.
Glidelogic Corp. Becomes TikTok Shop Partner, Opening a New Chapter in E-commerce Services • GDLG • Jul 5, 2024 7:09 AM
Freedom Holdings Corporate Update; Announces Management Has Signed Letter of Intent • FHLD • Jul 3, 2024 9:00 AM
EWRC's 21 Moves Gaming Studios Moves to SONY Pictures Studios and Green Lights Development of a Third Upcoming Game • EWRC • Jul 2, 2024 8:00 AM
BNCM and DELEX Healthcare Group Announce Strategic Merger to Drive Expansion and Growth • BNCM • Jul 2, 2024 7:19 AM
NUBURU Announces Upcoming TV Interview Featuring CEO Brian Knaley on Fox Business, Bloomberg TV, and Newsmax TV as Sponsored Programming • BURU • Jul 1, 2024 1:57 PM
Mass Megawatts Announces $220,500 Debt Cancellation Agreement to Improve Financing and Sales of a New Product to be Announced on July 11 • MMMW • Jun 28, 2024 7:30 AM