{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/860/50/#05-overview-and-background","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":"860","topic_title":"Transfers and Servicing","subtopic":"860-50","subtopic_title":"Servicing Assets and Liabilities","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"860-50-05-1","para":"05-1","html":"
This Subtopic provides accounting guidance for servicing assets and servicing liabilities.
","snippet":"This Subtopic provides accounting guidance for servicing assets and servicing liabilities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7bc6db6ffebfa53ceafc8efaf4bbea2454276ac4c5cf3db2b17f157ea0362911","downloaded_from":"2026-09-10T02:08:06.276Z","last_downloaded_at":"2026-09-10T02:08:06.276Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481467","source_sha256":"abc9694555e5550da582474d6a84da20b9ea02eeca772db0934108b308761403"}},{"citation":"860-50-05-2","para":"05-2","html":"
Servicing is inherent in all financial assets; it becomes a distinct asset or liability for accounting purposes only in the circumstances described in paragraph 860-50-25-1.
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Servicing of mortgage loans, credit card receivables, or other financial assets commonly includes, but is not limited to, the following activities:
  1. a
    Collecting principal, interest, and escrow payments from borrowers
  2. b
    Paying taxes and insurance from escrowed funds
  3. c
    Monitoring delinquencies
  4. d
    Executing foreclosure if necessary
  5. e
    Temporarily investing funds pending distribution
  6. f
    Remitting fees to guarantors, trustees, and others providing services
  7. g
    Accounting for and remitting principal and interest payments to the holders of beneficial interests or participating interests in the financial assets.
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A servicer of financial assets commonly receives the following benefits of servicing:
  1. a
    Revenues from contractually specified servicing fees
  2. b
    A portion of the interest from the financial assets
  3. c
    Late charges
  4. d
    Other ancillary sources, including float.
A servicer is entitled to receive all of those benefits of servicing only if it performs the servicing and incurs the costs of servicing the financial assets.
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