Houston - July 19, 2019

TPG’s abiity to address changes to accounting standards and regulations is just one reason why our software is considered best of breed.

2019 has been a productive time here at TPG as we have been striving to provide functionality to our users to improve their experience with our products and enable compliance to the various changes. The following is a summary of our efforts.

CECL

We have created the CECL Module to enable our users to comply with the FASB’s Current Expected Credit Loss standard. Although the standard is not yet finalized and implementation for some institutions has been extended, we are working collaboratively with our users to ensure the module provides the functionality needed by their institutions to be CECL-compliant.

  • 2016 - FASB issues CECL in June
  • 2017 - TPG begins developing a solution with data vendors and customers
  • 2018 - TPG creates the beta version of the CECL Module
  • 2019 - TPG provides the CECL Module beta version in Q1 to customers who plan to early adopt

On June 11, 2019, Congress introduces a bill to delay and study the impact CECL will have. On July 17, 2019, FASB proposes to delay the CECL implementation as follows:

  • SEC filers have been delayed to January 2022
  • Small reporting companies, private companies and nonprofits, and other public business entities have been delated until January 2024

UMBS

Effective June 3, 2019, Fannie Mae and Freddie Mac began issuing a common single mortgage-backed security known as the Uniform Mortgage-Backed Security (UMBS) though the Common Securitization Platform (CSP). Our users can now account for, post to GL, and report this new security type, as well as exchange their existing MBS securities for the new UMBS security within the system.

  • Our system now easily exchanges securities and tracks exchange fees
  • A new report enables users to document exchanges

Fed Recommends Reducing Reliance on LIBOR

As LIBOR is phased our per the the Alternative Reference Rates Committee’s (ARRC) recommendation, we have helped our users set up alternative indices such as SOFR (Secured Overnight Financing Rate), TGCR (Tri-Party General Collateral Rate),and BGCR (Broad General Collateral Rate).

  • Our flexible solution allows users to model securities that reset with alternative indices
  • TPG provided a tutorial on how securites are modeled with the new indices

Researching Refinitiv (formerly Reuters Datascope) as an Alternative Data Source

Based on feedback we have received from our customers, TPG is working on providing our customers with data alternatives. Our plan is to:

  • Initially provide the ability to load factors, rates, prices and ratings
  • Then add Security Master detail in 2020

Looking to the Future ...

TPG is working on updating our ePortfolio web portal application to support Bond Swap and Interactive Analytics.

Contact TPG to learn more about the benefits moving to our system would provide to your business..

 

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