{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/948/10/#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":"948","topic_title":"Financial Services—Mortgage Banking","subtopic":"948-10","subtopic_title":"Overall","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"948-10-05-1","para":"05-1","html":"
The Financial Services—Mortgage Banking Topic establishes accounting and reporting standards for mortgage banking entities and entities that engage in certain mortgage banking activities. This Topic includes the following Subtopics:
  1. a
    Overall
  2. b
    Receivables
  3. c
    Other Assets and Deferred Costs
  4. d
    Subparagraph superseded by Accounting Standards Update No. 2014-09.
  5. e
    Other Expenses.
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The Overall Subtopic provides general information concerning certain mortgage banking activities and specific guidance on capital disclosure requirements for mortgage banking entities.
","snippet":"The Overall Subtopic provides general information concerning certain mortgage banking activities and specific guidance on capital disclosure requirements for mortgage banking entities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9ae616a5499c018f90e7ce1604f8e12fabeb041ef5f057cfc2e3e6cd373d891b","downloaded_from":"2026-09-10T02:20:11.669Z","last_downloaded_at":"2026-09-10T02:20:11.669Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481665","source_sha256":"32b9956c94b117e5922090f963cf6b90a2d29a81d75958455a60d8782667e5e7"}},{"citation":"948-10-05-3","para":"05-3","html":"
As indicated in Section 948-10-15, while entities within the scope of this Topic must apply standards contained in all relevant Topics, the following are some of the more closely related Topics to the mortgage banking industry:
  1. a
    Guarantees
  2. b
    Consolidation
  3. c
    Financial Instruments
  4. d
    Interest
  5. e
    Transfers and Servicing.
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Mortgage banking activities primarily consist of two separate but interrelated activities:
  1. a
    The purchase or origination of mortgage loans and the sale of the loans to permanent investors
  2. b
    The subsequent long-term servicing of the loans.
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Mortgage loans are acquired for sale to permanent investors from a variety of sources, including the following:
  1. a
    Applications received directly from borrowers (in-house originations)
  2. b
    Purchases from realtors and brokers
  3. c
    Purchases from investors
  4. d
    Conversions of various forms of interim financing to permanent financing.
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See Topic 310 for guidance on mortgage loan purchases.
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A mortgage banking entity usually retains the right to service mortgage loans it sells to permanent investors. A servicing fee, usually based on a percentage of the outstanding principal balance of the mortgage loan, is received for performing loan administration functions. When servicing fees exceed the cost of performing servicing functions, the existing contractual right to service mortgage loans has economic value. Because of their value, rights to service mortgage loans frequently have been purchased and sold.
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Mortgage banking entities may receive or pay nonrefundable loan and commitment fees representing compensation for a variety of services. Those fees may include components representing, for example, an adjustment of the interest yield on the loan, a fee for designating funds for the borrower, or an offset of loan origination costs. For guidance on accounting for loan and commitment fees, see Subtopic 310-20.
","snippet":"Mortgage banking entities may receive or pay nonrefundable loan and commitment fees representing compensation for a variety of services. Those fees may include components representing, for example, an adjustment of the i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:65ef7f7d3ab17590c223cd27bf86b9fc9132e61c1856f594fb93c38d48c79c37","downloaded_from":"2026-09-10T02:20:11.669Z","last_downloaded_at":"2026-09-10T02:20:11.669Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481665","source_sha256":"32b9956c94b117e5922090f963cf6b90a2d29a81d75958455a60d8782667e5e7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1556602832714330ee4e1c765b1dda1ef0d5b3a6bd722fcc01ffc11504e77cd3","downloaded_from":"2026-09-10T02:20:11.669Z","last_downloaded_at":"2026-09-10T02:20:11.669Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481665","source_sha256":"32b9956c94b117e5922090f963cf6b90a2d29a81d75958455a60d8782667e5e7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9c1ad7c0bff2e8a727cbb4f695aedbecf20c90a8f0e9e08d97380aba0d1c89d8","downloaded_from":"2026-09-10T02:20:11.669Z","last_downloaded_at":"2026-09-10T02:20:11.669Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481665","source_sha256":"32b9956c94b117e5922090f963cf6b90a2d29a81d75958455a60d8782667e5e7"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9c1ad7c0bff2e8a727cbb4f695aedbecf20c90a8f0e9e08d97380aba0d1c89d8","downloaded_from":"2026-09-10T02:20:11.669Z","last_downloaded_at":"2026-09-10T02:20:11.669Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481665","source_sha256":"32b9956c94b117e5922090f963cf6b90a2d29a81d75958455a60d8782667e5e7"}}