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This document provides details about a webinar series focused on accounting for Allowance of Loan & Lease Losses (ALLL) and Other Real Estate Owned (OREO), highlighting session information, audience,
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How to fill out Accounting for ALLL & OREO

01
Gather necessary documentation and data related to assets.
02
Assess the qualitative and quantitative information for ALLL (Allowance for Loan and Lease Losses).
03
Determine the specific methodology you will use for the ALLL calculation, such as historical loss rates or a discounted cash flow analysis.
04
Calculate the required ALLL amount based on your chosen methodology and current asset quality.
05
Document all calculations and assumptions used in the ALLL estimation process.
06
For OREO (Other Real Estate Owned), review the value of properties acquired in foreclosure.
07
Assess each property for impairment and determine the fair market value.
08
Adjust the recorded amounts of OREO to reflect current market conditions.
09
Maintain proper documentation for all valuations and adjustments made.
10
Review ALLL and OREO calculations regularly and update as necessary.

Who needs Accounting for ALLL & OREO?

01
Financial institutions, including banks and credit unions, that offer loans.
02
Accounting professionals working in financial services.
03
Regulatory bodies that oversee financial reporting standards.
04
Investors and stakeholders interested in the financial health of institutions.
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National banks may hold other real estate owned (OREO) under certain circumstances for prescribed periods. Real property becomes other real estate owned through a variety of circumstances; for example, as conveyance in satisfaction of debts previously contracted or the relocation of banking premises.
Other real estate (ORE), also referred to as Other Real Estate Owned (OREO), consists of real property held for reasons other than to conduct the s business of the bank or savings association (referred to as “institutions”).
OREO is a lending term used to describe assets a lender, servicer, or asset management firm acquires as a result of foreclosure proceedings.

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Accounting for ALLL (Allowance for Loan and Lease Losses) involves estimating and reporting losses expected in loan portfolios. OREO (Other Real Estate Owned) pertains to real estate acquired through foreclosure or other means, which the entity intends to sell.
Financial institutions such as banks and credit unions that hold loans and real estate are required to file accounting for ALLL & OREO as part of their regulatory requirements.
To fill out Accounting for ALLL & OREO, entities must review their loan portfolios, assess the risk of losses, calculate the required reserves for ALLL, and accurately report the values for OREO on their financial statements.
The purpose is to ensure that financial institutions have adequate reserves for loan losses and to provide transparency regarding the value and risks associated with real estate owned through foreclosure.
Entities must report the estimated losses in the ALLL, the value of properties classified as OREO, the nature of the properties, any impairments, and the reasons for any changes in the reserves or values.
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