Mortgage Industry Reps Take Issue With Restrictive, Potentially Damaging MBS Accounting Proposal
April 4, 2013
The International Accounting Standards Board has proposed an accounting treatment that would force holders of all but the most senior tranche of an MBS to account for those assets at fair value through net income something that has the Mortgage Bankers Association expressing concern. The MBA generally supports the introduction of fair value through an other comprehensive income (OCI) classification for financial assets held within a business model in which assets are managed both in order to collect contractual cash flows and for possible sale, according to James Gross, vice president of financial accounting and public policy for the trade group. However, the MBA has...