# ASC 310-948-30: Receivables — Financial Services—Mortgage Banking — 30 Initial Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/310/948/#30-initial-measurement)

Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.

Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure.

Source downloaded (UTC): 2026-09-09T23:30:57.679Z to 2026-09-09T23:30:57.679Z

Record version: sha256:50f234b71f9cd3fe6478231589dfeb45a99a30648184ac10cfec2b25ff446b1b

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 310-948-30: 30 Initial Measurement

[Read section](https://asc.understandingaccounting.org/asc/310/948/#30-initial-measurement)

SEC content: no

#### Affiliated Transactions

##### [310-948-30-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-30-1)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:30:57.679Z to 2026-09-09T23:30:57.679Z

Record version: sha256:589c1a868ef7a92ad6789a057f7fdf37b0fc56dd4710fe920dbbaadddaeb78a4

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The carrying amount of mortgage loans to be sold to an [affiliated entity](https://asc.understandingaccounting.org/glossary/a/#affiliated-entity "An entity that directly or indirectly controls, is controlled by, or is under common control with another entity; also, a party with which the entity may deal if one party has the ability to exercise significant influence over the other's operating and financial policies as discussed in Section 323-10-15.") shall be adjusted to the lower of amortized cost basis or fair value of the loans as of the date management decides that a sale to an affiliated entity will occur. The date shall be determined based on, at a minimum, formal approval by an authorized representative of the purchaser, issuance of a commitment to purchase the loans, and acceptance of the commitment by the selling entity. The amount of any adjustment shall be charged to income.

##### [310-948-30-2](https://asc.understandingaccounting.org/asc/310/948/#310-948-30-2)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:30:57.679Z to 2026-09-09T23:30:57.679Z

Record version: sha256:cafa1ff5b5bfbac555a81925a1b605ddb0dfaf809e405f3915ac39efd8863170

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If a particular class of mortgage loans or all loans are originated exclusively for an affiliated entity, the originator is acting as an agent of the affiliated entity, and the loan transfers shall be accounted for at the [originator's acquisition cost](https://asc.understandingaccounting.org/glossary/o/#originator-s-acquisition-cost "Costs incurred by a mortgage banking entity that originates mortgage loans for a lender that intends to hold the loans to maturity.The originator's acquisition cost is equal to the principal amount of the loan adjusted for unamortized net fees and costs and any unearned discounts or premiums."). Such an agency relationship, however, would not exist in the case of right of first refusal contracts or similar types of agreements or commitments if the originator retains all the risks associated with ownership of the loans.

##### [310-948-30-3](https://asc.understandingaccounting.org/asc/310/948/#310-948-30-3)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:30:57.679Z to 2026-09-09T23:30:57.679Z

Record version: sha256:bdd76c72d3573b00383a852f6b93ec77fc419fcdb649c6b26ef62d6921a66901

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The originator's acquisition cost must conform to the provisions set forth in Topic 310.

#### Loans Held as Long-Term Investments

##### [310-948-30-4](https://asc.understandingaccounting.org/asc/310/948/#310-948-30-4)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:30:57.679Z to 2026-09-09T23:30:57.679Z

Record version: sha256:3f801084ad2834613f9bb9e80781dfbc646f932842fc31af150daed65165fa32

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


A mortgage loan classified as held-for-long-term-investment shall be measured at amortized cost basis. See Subtopic 326-20 for guidance on the measurement of credit losses for financial assets measured at amortized cost basis.