Industry groups have once again requested federal regulators delay a new accounting standard for credit losses. The Current Expected Credit Loss standard is scheduled to be implemented on a phased-in basis beginning in January.

Industry analysts are divided on how the Current Expected Credit Loss model accounting standard will impact mortgage lending by banks. The model, established by the Financial Accounting Standards Board in 2016, is set to take effect in 2020. The accounting standard will apply to loans held in portfolio. It requires upfront recognition of credit losses using long-term economic forecasts but doesn’t allow upfront recognition of future revenues associated with a loan ...