- The interagency advisory provides guidance to institutions on the appropriate accounting and reporting for commitments to:
- Originate mortgage loans that will be held for resale and
- Sell mortgage loans under mandatory delivery and best efforts contracts.
- The agencies believe the accounting guidance in this advisory is consistent with generally accepted accounting principles (GAAP).
- Institutions are expected to account for and report derivative loan commitments and forward loan sales commitments as derivatives in accordance with GAAP, which includes the use of valuation techniques that are reasonable and supportable in the determination of fair value.
- Institutions are expected to apply the guidance contained in this advisory when preparing their regulatory reports.
- An institutions failure to account for and report derivative loan commitments and forward loan sales commitments in accordance with GAAP may be an unsafe and unsound practice.
FDIC Supervised Banks (Commercial and Savings)
Chief Executive Officer
Chief Financial Officer
SFAS 133, Accounting for Derivative Instruments and Hedging Activities
SFAS 149, Amendment of Statement 133 on Derivative Instruments and Hedging ActivitiesSecurities and Exchange Commission Staff Accounting Bulletin No. 105, Application of Accounting Principles to Loan Commitments
Interagency Advisory on Accounting and Reporting for Commitments to Originate and Sell Mortgage Loans
Interagency Advisory on Accounting and Reporting for Commitments to Originate and Sell Mortgage Loans - PDF 175k (PDF Help)
FDIC Regional Accountant or Christine M. Bouvier a email@example.com or 202-898-7289.
FIL-39-2005 - PDF 40k (PDF Help)
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/news/financial/2005/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC FILs may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200).