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82 use platform that adheres to all estimation and reporting guidelines on CECL, TransUnion said in a statement. Issued by the Financial Accounting Stan- dards Board (FASB), CECL will change the methodology used by financial institutions in calculating the allowance for loan losses. e rule applies to all lenders and goes into effect in 2020 for SEC filers and 2021 for non-SEC filers. "Many players in the industry are describ- ing CECL as the biggest change to bank-ac- counting standards in years," said Jason Laky, SVP and Consumer Lending Business Leader at TransUnion. "While large banks have more resources at their disposal to adapt, we believe the majority of small- to mid-sized lenders will not have the ability or capacity to comply internally and may face challenges as they prepare for the rollout of this new rule." e combined TransUnion and EXL solu- tion allows lenders to use their portfolio data, or automatically import TransUnion-reported data, and adjust for macroeconomic scenarios through a series of customizable models. Based on business expectations, lenders may apply overlays and adjust the models across all credit products, including personal loans, auto loans, HELOCs, and mortgages, as well as revolving credit products such as credit cards. "e compliance nature of CECL brings pressure to lenders to have a CECL-ready plan in advance of the rule's effective date," said Ankor Rai, SVP and Global Co-Head of EXL Analytics. "We are pleased to partner with TransUnion to deliver a cutting-edge technology solution that will meet the needs of a variety of lenders as they prepare for the unique challenges associated with CECL." MICHIGAN Michigan's Lingering Housing Crisis A recent research project from the Urban Institute delved into the struggles lurking in Southeast Michigan housing, in "a series of interconnected policy and market challenges within Detroit and across the inner-ring and outer-ring suburbs." is project, funded by a grant from JPMorgan Chase, resulted in an article which explores the economic and social hurdles the residents of this region faced after the city's economy began its sharp decline in the mid-20th century. Challenges such as vacant properties and declining homeownership are well known on the national level for plaguing Detroit, but issues such as a growing senior population, a decline in African-American homeownership, and a surge in demand for rental housing are also affecting the stability of the housing mar- ket and economy further south in the state. A rapidly aging senior population will result in a surge of housing needs and policy changes that the area is wholly unprepared to face, according to the article, such as "new transpor- tation and housing needs, evolving healthcare demands, and income sources changing from wages to retirement assets." Accessibility improvements—like grab-bars and no-step entries—will be difficult for lower- or fixed- income residents to obtain, while dwindling resources are steadily becoming less and less available to local governments to assist in these older home repairs and accessibility renovations. In addition to this generational shift, a disproportionate effect of the 2008 financial crisis resulted in the homeownership rate in Michigan tumbling from 51 percent in 2000 to 40 percent in 2006, resulting from "an array of economic and social challenges undermining African-Americans' wealth." Urban Institute researchers stated that tax foreclosures and predatory land contracts would only continue to exacerbate the problem at hand. e third major issue addressed in this article culminates from the pressure of the two previous: a significant shift in homeown- ing versus renting. ough the article stated that Southeast Michigan has a 70 percent homeownership rate, "the share of renting households is expected to rise in the coming years." is has begun to result in a shortage of apartments, which has led to higher rental prices, barring many lower-income residents from the possibility of affordable housing. ough these facts seem bleak for the resi- dents of the region, Urban Institute outlined the many philanthropic and social responses that aim to answer these growing needs. e institute stated that "these housing challenges may have different root causes, but solving them will require collaborative approaches that involve public, private, nonprofit, and philan- thropic stakeholders from across the region to gather and share data along with the results of successful programs." Foreclosure Relief for Great Lake State Residents e Great Lake State's housing market is feeling the smoother seas of change this month, with two major programs aimed at housing affordability taking off in its two most populous cities. From a lawsuit result- ing in significant foreclosure forgiveness in Detroit to a policy change that could increase inventory for affordable housing in Grand Rapids, Michigan, residents will soon reap the benefits of progression. A program that could impact nearly 700 households in the city of Detroit by helping them avoid impending foreclosure extended its filing deadline for qualifying residents. is is thanks to a settlement between the city and the American Civil Liberties Union (ACLU). e settlement originated from the basis that a "series of unfair procedural and logisti- cal obstacles" prevented homeowners with low incomes from a property tax exemp- tion provided under Detroit's Homeowner Property Tax Assistance Program (HPTAP). e ACLU argued that these obstacles, combined with a lack of public knowledge surrounding the program, were the cause of tens of thousands of low-income residents losing their homes due to their inability to pay unfair taxes. rough this program, the homes that would otherwise be listed on the Wayne County tax foreclosure auction would be purchased by the city, which would then be passed to the United Community Housing Coalition, an organization that assists renters and homeowners with financial navigation to remain in their homes. e original an- nouncement of this program came with the filing deadline of July 13, but due to a severe lack of qualifying individuals being reached, it was extended to August 31. On the opposite side of the state and the issue, the city of Grand Rapids has seen a consistent dip in tax-foreclosed properties, resulting in the Kent County Land Bank Authority restructuring its role in how it interacts within the process of redevelop- ing foreclosed properties. e organization will now work with the city to clean up title issues, rather than take the titles of proper- ties, while the city works to sell the sites to nonprofit housing developers. e city hopes to alleviate its current af- fordable housing crisis by getting these prop- erties into the possession of local nonprofit development groups such as New Develop- ment Corp., Inner City Christian Federation, and Dwelling Place.

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