{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/860/50/#35-subsequent-measurement","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":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"860-50-35-1","para":"35-1","html":"
An entity shall subsequently measure each class of servicing assets and servicing liabilities using either of the following methods:
  1. a
    Amortization method. Amortize servicing assets or servicing liabilities in proportion to and over the period of estimated net servicing income (if servicing revenues exceed servicing costs) or net servicing loss (if servicing costs exceed servicing revenues), and assess servicing assets or servicing liabilities for impairment or increased obligation based on fair value at each reporting date.
  2. b
    Fair value measurement method. Measure servicing assets or servicing liabilities at fair value at each reporting date and report changes in fair value of servicing assets and servicing liabilities in earnings in the period in which the changes occur.
","snippet":"An entity shall subsequently measure each class of servicing assets and servicing liabilities using either of the following methods:\n(a) Amortization method. Amortize servicing assets or servicing liabilities in proporti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fcdfeba73c648dd7528db27b6f1a78e7b26ebc0d6141039bf7c069c9a4329f81","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-1A","para":"35-1A","html":"
A servicing asset may become a servicing liability, or vice versa, if circumstances change.
","snippet":"A servicing asset may become a servicing liability, or vice versa, if circumstances change.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:53e57c32f6df2a72f3227678dcb28dbcb0c2b0f5b8ac05873cbddefd553fce42","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-2","para":"35-2","html":"
The election described in paragraphs
860-50-35-1 through 35-5
shall be made separately for each class of servicing assets and servicing liabilities.
","snippet":"The election described in paragraphs 860-50-35-1 through 35-5 shall be made separately for each class of servicing assets and servicing liabilities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bb71724b052b71ce13fb763cae8ef85d7d63d5b9e35772d1e37f731043c8f4fb","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-3","para":"35-3","html":"
The following guidance applies to the election of a method for subsequent measurement of servicing assets and servicing liabilities:
  1. a
    Once an entity elects the fair value measurement method for a class of servicing assets and servicing liabilities, that election shall not be reversed.
  2. b
    Different elections can be made for different classes of servicing assets and servicing liabilities.
  3. c
    Once a servicing asset or a servicing liability is reported in a class of servicing assets and servicing liabilities that an entity elects to subsequently measure at fair value, that servicing asset or servicing liability shall not be placed in a class of servicing assets and servicing liabilities that is subsequently measured using the amortization method.
  4. d
    An entity may make an irrevocable decision to subsequently measure a class of servicing assets and servicing liabilities at fair value at the beginning of any fiscal year.
  5. e
    Transferring servicing assets and servicing liabilities from a class subsequently measured using the amortization method to a class subsequently measured at fair value is permitted as of the beginning of any fiscal year. If an entity makes such a transfer, subsequent measurement of servicing assets and servicing liabilities at fair value shall be applied prospectively with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year to reflect the difference between the fair value and the carrying amount, net of any related valuation allowance, of the servicing assets and servicing liabilities that exist at the beginning of the fiscal year in which the entity makes the fair value election.
  6. f
    If an entity recognizes a new class of servicing assets and servicing liabilities, and no servicing assets and servicing liabilities that would belong to this class had previously been recognized by the entity, the entity may elect to subsequently measure that new class of servicing assets and servicing liabilities at fair value at the date of initial recognition of those servicing assets and servicing liabilities.
","snippet":"The following guidance applies to the election of a method for subsequent measurement of servicing assets and servicing liabilities:\n(a) Once an entity elects the fair value measurement method for a class of servicing as…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:33d0c83d4c5990af64a52fc4b16f7c73ae8c60274b637844f75305d1b61b8524","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-4","para":"35-4","html":"
An entity shall apply the same subsequent measurement method to each servicing asset and servicing liability in a class.
","snippet":"An entity shall apply the same subsequent measurement method to each servicing asset and servicing liability in a class.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c0fdc1383529bd7d182983ed88d7625cb0a89d7b26724939db13f11c96b835a","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-5","para":"35-5","html":"
Classes of servicing assets and servicing liabilities shall be identified based on any of the following:
  1. a
    The availability of market inputs used in determining the fair value of servicing assets or servicing liabilities
  2. b
    An entity's method for managing the risks of its servicing assets or servicing liabilities.
","snippet":"Classes of servicing assets and servicing liabilities shall be identified based on any of the following:\n(a) The availability of market inputs used in determining the fair value of servicing assets or servicing liabiliti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c0f065d936faa11864a3837963b7864db640ebac25827776acc664525e9ac6a9","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-6","para":"35-6","html":"
Under the approach in the preceding paragraph, a servicer may or may not consider the major asset type of the underlying financial asset being serviced when identifying its classes of separately recognized servicing assets and servicing liabilities. Further, this approach for defining classes of servicing assets and servicing liabilities is not analogous to the stratification guidance for determining impairment of servicing assets or servicing liabilities that are subsequently measured using the amortization method.
","snippet":"Under the approach in the preceding paragraph, a servicer may or may not consider the major asset type of the underlying financial asset being serviced when identifying its classes of separately recognized servicing asse…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c507341b6c3aa01702531d932cc53a3a19841640ff611a31f75c0f9f3586e12a","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-7","para":"35-7","html":"
An entity shall first identify its classes of separately recognized servicing assets and servicing liabilities under the approach in paragraph 860-50-35-5. For any class subsequently measured using the amortization method, an entity shall then stratify that class to determine if impairment has occurred, as discussed in paragraph 860-50-35-9(a).
","snippet":"An entity shall first identify its classes of separately recognized servicing assets and servicing liabilities under the approach in paragraph 860-50-35-5. For any class subsequently measured using the amortization metho…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:84c11f6fa5c18146e214baeadf2843b1cdc2b664acc4f891bbaf086654875252","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-8","para":"35-8","html":"
The remainder of this Section discusses the following matters:
  1. a
    Amortization method—measurement of impairment or increased obligation
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2009-16.
  3. c
    Obligation to service refinanced financial assets.
","snippet":"The remainder of this Section discusses the following matters:\n(a) Amortization method—measurement of impairment or increased obligation\n(b) Subparagraph superseded by Accounting Standards Update No. 2009-16.\n(c) Obligat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5568aab9f09e9a35ba05e812299b4aa5c63c6d36cb8b10597e88055a3d6740d2","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:12b9c702d5cbb42d7b411be403cf156bc0bd2c10e5b7c894618d9dcc7ce89587","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"block":null,"heading":"Amortization Method—Measurement of Impairment or Increased Obligation","paragraphs":[{"citation":"860-50-35-9","para":"35-9","html":"
An entity shall evaluate and measure impairment of each class of separately recognized servicing assets that are subsequently measured using the amortization method described in paragraph 860-50-35-1(a) as follows:
  1. a
    Stratify servicing assets within a class based on one or more of the predominant risk characteristics of the underlying financial assets. Those characteristics may include financial asset type, size, interest rate, date of origination, term, and geographic location. For mortgage loans, financial asset type refers to the various conventional or government guaranteed or insured mortgage loans and adjustable-rate or fixed-rate mortgage loans.
  2. b
    Recognize impairment through a valuation allowance for an individual stratum. The amount of impairment recognized separately shall be the amount by which the carrying amount of servicing assets for a stratum exceeds their fair value. The fair value of servicing assets that have not been recognized shall not be used in the evaluation of impairment.
  3. c
    Adjust the valuation allowance to reflect changes in the measurement of impairment after the initial measurement of impairment. Fair value in excess of the carrying amount of servicing assets for that stratum, however, shall not be recognized.
","snippet":"An entity shall evaluate and measure impairment of each class of separately recognized servicing assets that are subsequently measured using the amortization method described in paragraph 860-50-35-1(a) as follows:\n(a) S…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f0199f2e2308c06b03d2f16e55ed604cc6fe546dcae88f3c508ea63535ac4d50","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-10","para":"35-10","html":"
This Subtopic does not address when an entity should record a direct write-down of recognized servicing assets.
","snippet":"This Subtopic does not address when an entity should record a direct write-down of recognized servicing assets.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ac8239e50f5faf5f29290f151a6e908f59582d0d04784238312ccacf0bdccdc4","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-11","para":"35-11","html":"
For servicing liabilities subsequently measured using the amortization method, if subsequent events have increased the fair value of the liability above the carrying amount, for example, because of significant changes in the amount or timing of actual or expected future cash flows relative to the cash flows previously projected, the servicer shall revise its earlier estimates and recognize the increased obligation as a loss in earnings. That is, if subsequent events increase the fair value of a stratum of servicing liabilities within a class that an entity has elected to subsequently measure using the amortization method, that increase shall be recognized in earnings as a loss. Similar to the accounting for changes in a valuation allowance for an impaired asset, increases in the servicing obligation may be recovered, but the obligation shall not be reduced below the amortized measurement of the initially recognized servicing liability.
","snippet":"For servicing liabilities subsequently measured using the amortization method, if subsequent events have increased the fair value of the liability above the carrying amount, for example, because of significant changes in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:38c4439cf70f630233876871fb54bb0eb96855cd788722badc2bcbadf3fd105f","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-12","para":"35-12","html":"
The impairment provisions of paragraphs 860-50-35-9 and 860-50-35-11 for classes of servicing assets and servicing liabilities subsequently measured using the amortization method are based on the fair value of the contract rather than the gain or loss from subsequently carrying out the terms of the contract.
","snippet":"The impairment provisions of paragraphs 860-50-35-9 and 860-50-35-11 for classes of servicing assets and servicing liabilities subsequently measured using the amortization method are based on the fair value of the contra…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6394775ac27a3a6cad1722b5cbf91dce229e62bc3469c6109d978df2655c0634","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-13","para":"35-13","html":"
An entity is not required to use either the most predominant risk characteristic or more than one predominant risk characteristic to stratify the servicing assets for purposes of evaluating and measuring impairment. An entity must exercise judgment when determining how to stratify servicing assets (that is, when selecting the most appropriate characteristic[s] for stratification). An entity may use different stratification criteria for the purposes of impairment testing under this Subtopic and for the purposes of grouping similar assets to be designated as a hedged portfolio in a fair value hedge under Subtopic 815-20. If an entity chooses not to restratify servicing assets for impairment testing under this Subtopic consistent with any restratification done for compliance with hedging criteria under Subtopic 815-20, the entity shall record any adjustments resulting from a fair value hedge to the risk strata used for impairment testing under paragraph 860-50-35-9.
","snippet":"An entity is not required to use either the most predominant risk characteristic or more than one predominant risk characteristic to stratify the servicing assets for purposes of evaluating and measuring impairment. An e…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:568d951273768333d1e20180e010dd5ddd67089436fb126a6de3ed6d80abe885","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-14","para":"35-14","html":"
Once an entity has determined the predominant risk characteristics to be used in identifying the resulting stratums within each class of servicing assets subsequently measured using the amortization method, that decision shall be applied consistently unless significant changes in economic facts and circumstances clearly indicate that the predominant risk characteristics and resulting stratums should be changed. If a significant change in economic facts and circumstances occurs, that change shall be accounted for prospectively as a change in accounting estimate in accordance with paragraphs
250-10-45-17 through 45-19
and 250-10-50-4.
","snippet":"Once an entity has determined the predominant risk characteristics to be used in identifying the resulting stratums within each class of servicing assets subsequently measured using the amortization method, that decision…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0ddb681984ffc14ac0713dd14c2e266fa4a9a5be6c9c0ff2ee552ed499f98635","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-15","para":"35-15","html":"
Paragraph superseded by Accounting Standards Update No. 2009-16.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2009-16.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:547579ba42972eb71f29864f815c736edf3ec01f9376be3c92e79ff12557eb69","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-16","para":"35-16","html":"
Paragraph superseded by Accounting Standards Update No. 2009-16.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2009-16.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b2016dad68c703ee3f322ce5ff74bd65c635fe6a9f8d0e704803afab2d0f5173","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7aadc1c2e20bedf169a1b6e0fbb77c40d50774603ad46ef47d65de1249ae229b","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"block":null,"heading":"Obligation to Service Refinanced Mortgage Loans","paragraphs":[{"citation":"860-50-35-17","para":"35-17","html":"
When an entity that is servicing mortgage loans refinances a mortgage loan that is being serviced (resulting in prepayment of the old mortgage loan and origination of a new mortgage loan), the entity shall not consider the estimated future net servicing income (that is, servicing revenue in excess of servicing costs) from the new mortgage loan in determining how to amortize any capitalized cost related to acquiring the mortgage servicing asset for the old mortgage loan. The mortgage servicing asset represents a contractual relationship between the servicer and the investor in the mortgage loan, not between the servicer and the borrower.
","snippet":"When an entity that is servicing mortgage loans refinances a mortgage loan that is being serviced (resulting in prepayment of the old mortgage loan and origination of a new mortgage loan), the entity shall not consider t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d98846a94f70284cd7c56d2404ace44541dddbef85224ff561ed51857a01f1ae","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},{"citation":"860-50-35-18","para":"35-18","html":"
The cost of a mortgage servicing asset that is subsequently measured using the amortization method may require adjustment as a result of the refinancing transaction depending on the servicer's assumptions in recording the servicing asset. If the refinancing transaction represents prepayment activity anticipated by the servicer when the servicing asset was recorded, an adjustment would not be necessary. However, if actual prepayments differ from anticipated prepayments, an adjustment to the servicing asset would be required. If the servicing assets or liabilities are subsequently measured using the fair value measurement method, the entity shall recognize any adjustment as a result of the refinancing transaction directly in earnings.
","snippet":"The cost of a mortgage servicing asset that is subsequently measured using the amortization method may require adjustment as a result of the refinancing transaction depending on the servicer's assumptions in recording th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c8c53a45c9dfa10ebdfa88178a0cf38cba83dc04cf2e24a5b7a0aee23f7e41d0","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b37763f2856d56b9e995c85744cac94de21a3ccecd73f3661adae75384f9464f","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc0e3b0a0ffd28f6dc04e162a9b304d518e862b00931df864c7aa735540ef04a","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc0e3b0a0ffd28f6dc04e162a9b304d518e862b00931df864c7aa735540ef04a","downloaded_from":"2026-09-10T02:08:18.331Z","last_downloaded_at":"2026-09-10T02:08:18.331Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481318","source_sha256":"34dbfca8fd2d267ba9e213016c8158aadd811f0f1e17f233cf998b7994410cdc"}}