ASC

ASC 605-948

Financial Services—Mortgage Banking

605 Revenue Recognition

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In brief

IntermediateRevenueIndustry-specificTransition and effective datesRecognition

ASC 605-948 formerly provided revenue recognition guidance for mortgage banking activities (notably loan servicing fees and related mortgage banking revenues) under the legacy ASC 605 model. Every paragraph in the subtopic — Sections 05, 15, and 25 — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). The subtopic therefore contains no operative guidance today; mortgage banking revenue is addressed under ASC 606 and the specialized guidance retained in ASC 948.

Key points (5)
  • All content of this subtopic, including 605-948-05-1, 605-948-15-1, and 605-948-25-1 through 25-3, was superseded by Accounting Standards Update No. 2014-09.
  • No recognition, scope, or overview guidance remains operative in ASC 605-948; the shell paragraphs exist only to preserve Codification structure.
  • Revenue from contracts with customers in mortgage banking (for example, certain servicing-related fee arrangements) is now evaluated under ASC 606, principally the five-step model in 606-10-05-4.
  • Mortgage banking activities that are financial-instrument based — loans held for sale, mortgage servicing rights, and loan origination fees — remain outside ASC 606 and are governed by ASC 948, ASC 860, and ASC 310-20.
  • Entities should not apply legacy ASC 605-948 guidance for periods after adoption of ASU 2014-09; it is retained solely for historical reference.

For students. This subtopic is an empty shell — every paragraph was killed by ASU 2014-09 — so citing it as live authority is the classic mistake. Know that mortgage banking revenue questions now split between ASC 606 (customer-contract fees) and ASC 948/860/310-20 (loans held for sale, servicing rights, origination fees, which ASC 606 explicitly scopes out).

superseded guidancemortgage banking activitiesloan servicing feesrevenue from contracts with customerstransition to asc 606financial services industry guidance

Machine-generated study aid for ASC 605-948. Check the source paragraphs below.

605-948-00Status

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605-948-00-1
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
Mortgage Banking Entity Superseded Accounting Standards Update No. 2014-09 05/28/2014
Permanent Investor Superseded Accounting Standards Update No. 2014-09 05/28/2014
948-605-05-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
948-605-15-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
948-605-25-1 through 25-3
 Superseded Accounting Standards Update No. 2014-09 05/28/2014

605-948-05Overview and Background

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605-948-15Scope and Scope Exceptions

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605-948-25Recognition

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