{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/310/948/#40-derecognition","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"310","topic_title":"Receivables","subtopic":"310-948","subtopic_title":"Financial Services—Mortgage Banking","section":{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":"Securitization of a Mortgage Loan Held for Sale","paragraphs":[{"citation":"310-948-40-1","para":"40-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_1746AD21-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">After the securitization of a mortgage loan held for sale that meets paragraph <a href=\"/asc/860/10/#860-10-40-5\" class=\"xref\">860-10-40-5</a>'s conditions for a sale, any mortgage-backed securities received by the transferor as proceeds shall be classified in accordance with the provisions of Topic <a altsource=\"GUID-A9CFFB3B-63C1-4D60-AEE3-DA1A278C07C2.ditamap\" class=\"ditamap\">320</a>. </span></span><span class=\"sfragment\" id=\"sfr_1746AEB4-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">However, paragraph <a href=\"/asc/310/948/#310-948-35-3A\" class=\"xref\">948-310-35-3A</a> states that a mortgage banking entity must classify as trading any mortgage-backed securities received as proceeds that it commits to sell before or during the securitization process. </span></span><span class=\"sfragment\" id=\"sfr_1746AFEF-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity is prohibited from reclassifying loans as investment securities unless the transfer of those loans meets paragraph <a href=\"/asc/860/10/#860-10-40-5\" class=\"xref\">860-10-40-5</a>'s conditions for sale accounting.</span></span></div></div>","snippet":"After the securitization of a mortgage loan held for sale that meets paragraph 860-10-40-5's conditions for a sale, any mortgage-backed securities received by the transferor as proceeds shall be classified in accordance …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9228cdbc10bd80ff06dcb1aeffa47b0fad21058384fe4a0b290c8cd4133c907d","downloaded_from":"2026-09-09T23:31:03.745Z","last_downloaded_at":"2026-09-09T23:31:03.745Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477698","source_sha256":"3c95c523b6a5ff65ff023a3e0fa6e2554fb356ea7efa2e7dd7725cc2ad6eb9df"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:10f06647e9a5793e1b98686084337e9f309167849c7bd95a9418fc28e5c13cb8","downloaded_from":"2026-09-09T23:31:03.745Z","last_downloaded_at":"2026-09-09T23:31:03.745Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477698","source_sha256":"3c95c523b6a5ff65ff023a3e0fa6e2554fb356ea7efa2e7dd7725cc2ad6eb9df"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fe08dead982cc610331b6912d0fc93cef8281a1554900b1a564aea1da8553539","downloaded_from":"2026-09-09T23:31:03.745Z","last_downloaded_at":"2026-09-09T23:31:03.745Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477698","source_sha256":"3c95c523b6a5ff65ff023a3e0fa6e2554fb356ea7efa2e7dd7725cc2ad6eb9df"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fe08dead982cc610331b6912d0fc93cef8281a1554900b1a564aea1da8553539","downloaded_from":"2026-09-09T23:31:03.745Z","last_downloaded_at":"2026-09-09T23:31:03.745Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477698","source_sha256":"3c95c523b6a5ff65ff023a3e0fa6e2554fb356ea7efa2e7dd7725cc2ad6eb9df"}}