# ASC Topic 948: Financial Services—Mortgage Banking Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/948/) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T02:20:07.609Z to 2026-09-10T02:20:23.493Z Record version: sha256:b3dc2f648b199a92094ba96fed1be04d33ce26a6f54c707153b1c8f7f3b02d69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 948 provides incremental industry guidance for mortgage banking, and its Overall subtopic (948-10) frames the two interrelated activities that define the industry: originating or purchasing mortgage loans for sale to permanent investors, and servicing those loans long-term (948-10-05-4). Scope covers mortgage banking entities and the mortgage banking operations of other entities such as commercial banks and thrifts, but not their normal lending activities, and excludes commitments to originate loans held for sale and derivative-accounted purchase/sale commitments under Topic 815 (948-10-15-2 through 15-4). The only substantive requirements in the Overall subtopic are disclosures about minimum net worth (capital) requirements imposed by secondary market investors or state regulators—describing the requirement, whether the entity complies (with required and actual amounts at each balance sheet date), and the possible material effects of noncompliance (948-10-50-3 through 50-5). The key idea: ASC 948 supplements, rather than replaces, other applicable GAAP (e.g., loan and commitment fees follow Subtopic 310-20). Source downloaded (UTC): 2026-09-10T02:20:07.609Z to 2026-09-10T02:20:23.493Z Record version: sha256:ab7e784d486f5007e6d36cb645850d8f133aaddb7b5cb60656e6869962eb7508 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 948-10: Financial Services—Mortgage Banking — Overall ### Machine-generated study aids ```json { "summary": "ASC 948-10 is the Overall subtopic for mortgage banking, providing background on the two core mortgage banking activities—originating/purchasing loans for sale to permanent investors and subsequently servicing those loans—and defining the Topic's scope. Its only substantive requirements are disclosures about minimum net worth (capital) requirements imposed by secondary market investors and state regulators, including whether the entity complies and the effects of noncompliance. The Topic supplies only incremental industry guidance; entities must also apply all other applicable GAAP.", "key_points": [ "Mortgage banking activities consist of two separate but interrelated activities: purchase or origination of mortgage loans and their sale to permanent investors, and the subsequent long-term servicing of those loans (948-10-05-4).", "The Topic applies to mortgage banking entities and to mortgage banking operations of other entities such as commercial banks and thrifts, but not to those entities' normal lending activities (948-10-15-2 through 15-3).", "The Topic does not apply to commitments to originate mortgage loans held for sale, or to fees and costs on commitments to sell or purchase loans accounted for as derivatives under Topic 815 (948-10-15-4).", "An entity subject to minimum net worth requirements from secondary market investors or state mandates must disclose a description of those requirements, the actual or possible material effects of noncompliance, and whether it is in compliance, including required and actual net worth amounts as of each balance sheet date (948-10-50-3).", "If not in compliance at the most recent balance sheet date, the entity must disclose the possible material effects of that condition on the amounts and disclosures in the notes (948-10-50-3(d)); noncompliance may also raise substantial doubt about going concern, prompting the additional disclosures listed in 948-10-50-4.", "Servicers with net worth requirements from multiple sources must disclose the requirement under significant servicing covenants with common secondary market investors (HUD, FNMA, GNMA, FHLMC), any other investor whose violation would significantly adversely affect the business, and the most restrictive third-party agreement (948-10-50-5).", "Retained mortgage servicing rights have economic value when servicing fees exceed the cost of servicing, and such rights are frequently bought and sold (948-10-05-7); loan and commitment fee accounting is governed by Subtopic 310-20 (948-10-05-8)." ], "categories": [ "Disclosure", "Industry-specific", "Financial instruments" ], "audience_level": "intermediate", "student_note": "Remember that 948-10 itself is mostly scope and disclosure—the measurement rules live in 948-310 (loans held for sale at LOCOM), 948-405, and 860-50 (servicing rights). A common misunderstanding is thinking the Topic covers all bank lending; it reaches only mortgage banking–type operations, not a bank's normal lending activities.", "related_topics": [ "948-310", "860-50", "310-20", "815", "825", "460" ], "key_concepts": [ "mortgage banking entity", "loans held for sale", "mortgage servicing rights", "permanent investors", "minimum net worth requirements", "secondary market investors", "capital adequacy disclosure", "going concern doubt" ] } ``` Source downloaded (UTC): 2026-09-10T02:20:07.609Z to 2026-09-10T02:20:07.609Z Record version: sha256:e65cf1e02009382ee06f75b5e0e0635fad87b6c098b74d8b25b532deaa22b0df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 948-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/948/10/#00-status) SEC content: no ##### [948-10-00-1](https://asc.understandingaccounting.org/asc/948/10/#948-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:07.609Z to 2026-09-10T02:20:07.609Z Record version: sha256:10ece75bff3dd30bbf799b34b2e111fdb725524e0a6213e5b11c8dcd37e45528 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Permanent InvestorAddedMaintenance Update 2017-06 (PDF)04/07/2017
948-10-05-1AmendedAccounting Standards Update No. 2014-0905/28/2014
948-10-05-4AmendedMaintenance Update 2017-06 (PDF)04/07/2017
Source downloaded (UTC): 2026-09-10T02:20:11.669Z to 2026-09-10T02:20:11.669Z Record version: sha256:9c1ad7c0bff2e8a727cbb4f695aedbecf20c90a8f0e9e08d97380aba0d1c89d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 948-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/948/10/#05-overview-and-background) SEC content: no ##### [948-10-05-1](https://asc.understandingaccounting.org/asc/948/10/#948-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:11.669Z to 2026-09-10T02:20:11.669Z Record version: sha256:62e604689c2547205b20cc4d3486c2e3af0ca52f4be7acf111ad6d964c73f5ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Financial Services—Mortgage Banking Topic establishes accounting and reporting standards for [mortgage banking entities](https://asc.understandingaccounting.org/glossary/m/#mortgage-banking-entity "An entity that is engaged primarily in originating, marketing, and servicing real estate mortgage loans for other than its own account. Mortgage banking entities, as local representatives of institutional lenders, act as correspondents between lenders and borrowers.") 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](https://asc.understandingaccounting.org/updates/asu-2014-09/). 5. e Other Expenses. ##### [948-10-05-2](https://asc.understandingaccounting.org/asc/948/10/#948-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:11.669Z to 2026-09-10T02:20:11.669Z Record version: sha256:9ae616a5499c018f90e7ce1604f8e12fabeb041ef5f057cfc2e3e6cd373d891b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic provides general information concerning certain mortgage banking activities and specific guidance on capital disclosure requirements for mortgage banking entities. ##### [948-10-05-3](https://asc.understandingaccounting.org/asc/948/10/#948-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:11.669Z to 2026-09-10T02:20:11.669Z Record version: sha256:248a9a50f0f8a30084e5094de1b874986d80e8c360a44a5974fe05d7681027e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [948-10-05-4](https://asc.understandingaccounting.org/asc/948/10/#948-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:11.669Z to 2026-09-10T02:20:11.669Z Record version: sha256:69a7f0bfb81fc42853e4e4e8b683c4959041d6a0fe9e415a73a0a25407b009a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/p/#permanent-investor "An entity that invests in mortgage loans for its own account, for example, an insurance entity, commercial or mutual savings bank, savings and loan association, pension plan, real estate investment trust, or Federal National Mortgage Association (FNMA).") 2. b The subsequent long-term servicing of the loans. ##### [948-10-05-5](https://asc.understandingaccounting.org/asc/948/10/#948-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:11.669Z to 2026-09-10T02:20:11.669Z Record version: sha256:813197ae0ba1994f608c31c71f6dceac70059d280705487013294e004fc34904 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [948-10-05-6](https://asc.understandingaccounting.org/asc/948/10/#948-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:11.669Z to 2026-09-10T02:20:11.669Z Record version: sha256:0a2c10245001e2660d6adef1e7ee818bf38127b01f5c1b0738bf298c9fdbd4d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Topic 310 for guidance on mortgage loan purchases. ##### [948-10-05-7](https://asc.understandingaccounting.org/asc/948/10/#948-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:11.669Z to 2026-09-10T02:20:11.669Z Record version: sha256:d6ae2aae808e7dc9aed0249670afe09c92cb50b39edc6861e593ba49f01945d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [948-10-05-8](https://asc.understandingaccounting.org/asc/948/10/#948-10-05-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:11.669Z to 2026-09-10T02:20:11.669Z Record version: sha256:65ef7f7d3ab17590c223cd27bf86b9fc9132e61c1856f594fb93c38d48c79c37 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. Source downloaded (UTC): 2026-09-10T02:20:13.777Z to 2026-09-10T02:20:13.777Z Record version: sha256:32c0caa1004ca850626f87b5885bbb6bd6f839c683881771d780dab7efd02686 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 948-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/948/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [948-10-15-1](https://asc.understandingaccounting.org/asc/948/10/#948-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:13.777Z to 2026-09-10T02:20:13.777Z Record version: sha256:9fff0238208d51e4584080952f7431c360e3298926e1212c7232e56dc2169048 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Subtopics within the Financial Services—Mortgage Banking Topic only provide incremental industry-specific guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Financial Services—Mortgage Banking Subtopics. Entities within the scope of this Topic shall also comply with the applicable guidance not included in this Topic. #### Entities ##### [948-10-15-2](https://asc.understandingaccounting.org/asc/948/10/#948-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:13.777Z to 2026-09-10T02:20:13.777Z Record version: sha256:f91e89c2a461e5ea5882a916de30015759075e32ad1045340e33a2259a5c845a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Financial Services—Mortgage Banking Topic applies to certain activities of [mortgage banking entities](https://asc.understandingaccounting.org/glossary/m/#mortgage-banking-entity "An entity that is engaged primarily in originating, marketing, and servicing real estate mortgage loans for other than its own account. Mortgage banking entities, as local representatives of institutional lenders, act as correspondents between lenders and borrowers."). ##### [948-10-15-3](https://asc.understandingaccounting.org/asc/948/10/#948-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:13.777Z to 2026-09-10T02:20:13.777Z Record version: sha256:83d121dc4e1e79a7a6d6de5eddcbb1703a0ecfd180bc96a3e839e3497dd4e2af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic also applies to certain operations of other entities, such as commercial banks and thrift institutions, that may participate in any of the following activities: 1. a Conduct operations that are substantially similar to the primary operations of a mortgage banking entity (for example, through subsidiaries or divisions) 2. b Engage in transactions that involve mortgage activities or transactions but that do not consider themselves to be mortgage companies. The guidance in this Topic does not apply, however, to the normal lending activities of those other entities. #### Transactions ##### [948-10-15-4](https://asc.understandingaccounting.org/asc/948/10/#948-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:13.777Z to 2026-09-10T02:20:13.777Z Record version: sha256:7a81496aa8bd4a1a85f699a6fe13acb72ce188459d3a015f2a644c77d517a2fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic does not apply to the following transactions: 1. a Commitments related to the origination of mortgage loans to be held for sale 2. b Fees and costs related to commitments to sell or purchase loans that are accounted for as derivatives under Topic 815. Source downloaded (UTC): 2026-09-10T02:20:19.843Z to 2026-09-10T02:20:19.843Z Record version: sha256:0cc56b5f14f84696cd8df7dfb0938b1261151a12c1a13a5872aada9f6382d1ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 948-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/948/10/#50-disclosure) SEC content: no ##### [948-10-50-1](https://asc.understandingaccounting.org/asc/948/10/#948-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:19.843Z to 2026-09-10T02:20:19.843Z Record version: sha256:b92ae9b35373c59d8ba1d01dc32f5386401d72acc3983cd1e3f16f3499d60e44 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides capital requirements disclosure guidance for [mortgage banking entities](https://asc.understandingaccounting.org/glossary/m/#mortgage-banking-entity "An entity that is engaged primarily in originating, marketing, and servicing real estate mortgage loans for other than its own account. Mortgage banking entities, as local representatives of institutional lenders, act as correspondents between lenders and borrowers.") and entities with mortgage banking activities. ##### [948-10-50-2](https://asc.understandingaccounting.org/asc/948/10/#948-10-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:19.843Z to 2026-09-10T02:20:19.843Z Record version: sha256:f08460715c3ff162c21f1fc920c7b29213d794959d139418fb6acc9e355728eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following are capital disclosure requirements for mortgage entities and other activities within the scope of this Subtopic. ##### [948-10-50-3](https://asc.understandingaccounting.org/asc/948/10/#948-10-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:19.843Z to 2026-09-10T02:20:19.843Z Record version: sha256:18b49757f604904dd1dbd0ddebe8a6e48e636fe6e7e2d5e3f474118f6a654b0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Noncompliance with minimum net worth (capital) requirements imposed by secondary market investors or state-imposed regulatory mandates could materially affect the economic resources of a mortgage banking entity and claims to those resources. To the extent an entity is subject to such requirements, the entity shall disclose all of the following in the notes to financial statements: 1. a A description of the minimum net worth requirements related to secondary market investors and state-imposed regulatory mandates 2. b The actual or possible material effects of noncompliance with those requirements 3. c Whether the entity is in compliance with the regulatory capital requirements, including, as of each balance sheet date presented, both of the following with respect to quantitative measures: 1. 1 The entity's required and actual net worth amounts 2. 2 Factors that may significantly affect the adequacy of net worth such as potentially volatile components of capital, qualitative factors, or regulatory mandates. 4. d If, as of the most recent balance sheet date, the entity is not in compliance with capital adequacy requirements, the possible material effects of such conditions on amounts and disclosures in the notes to financial statements. ##### [948-10-50-4](https://asc.understandingaccounting.org/asc/948/10/#948-10-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:19.843Z to 2026-09-10T02:20:19.843Z Record version: sha256:e2f24277f47dcb17ec4c82b09bd11df72169647291ec5d6a0c1ac72ea04a2b75 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Further, noncompliance with minimum net worth requirements may, when considered with other factors, raise substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. Additional information that might be disclosed in these situations may include the following: 1. a Pertinent conditions and events giving rise to the assessment of substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time 2. b Possible effects of such conditions and events 3. c Management's evaluation of the significance of those conditions and events and any mitigating factors 4. d Possible discontinuance of operations 5. e Management's plans (including any relevant financial information) 6. f Information about the recoverability or classification of recorded asset amounts or the amounts or classifications of liabilities. ##### [948-10-50-5](https://asc.understandingaccounting.org/asc/948/10/#948-10-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:19.843Z to 2026-09-10T02:20:19.843Z Record version: sha256:c7e643a5e303f0892901dc7ec607cb01fe5f8722c4f6cba56ce02db33cc92cfb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Servicers with net worth requirements from multiple sources shall disclose, in the notes to financial statements, the net worth requirement of the following: 1. a Significant servicing covenants with secondary market investors with commonly defined servicing requirements (Common secondary market investors include the U.S. Department of Housing and Urban Development, [Federal National Mortgage Association](https://asc.understandingaccounting.org/glossary/f/#federal-national-mortgage-association "Often referred to as Fannie Mae, FNMA is an investor-owned corporation established by Congress to support the secondary mortgage loan market by purchasing mortgage loans when other investor funds are limited and selling mortgage loans when other investor funds are available.") \[FNMA\], [Government National Mortgage Association](https://asc.understandingaccounting.org/glossary/g/#government-national-mortgage-association "Often referred to as Ginnie Mae, GNMA is a U.S. governmental agency that guarantees certain types of mortgage-backed securities and provides funds for and administers certain types of low-income housing assistance programs.") \[GNMA\], and [Federal Home Loan Mortgage Corporation](https://asc.understandingaccounting.org/glossary/f/#federal-home-loan-mortgage-corporation "Often referred to as Freddie Mac, FHLMC is a private corporation authorized by Congress to assist in the development and maintenance of a secondary market in conventional residential mortgages. FHLMC purchases mortgage loans and sells mortgages principally through mortgage participation certificates representing an undivided interest in a group of conventional mortgages. FHLMC guarantees the timely payment of interest and the collection of principal on the participation certificates.") \[FHLMC\].) 2. b Any other secondary market investor where violation of the requirement would have a significant adverse effect on the business 3. c The most restrictive third-party agreement if not included above.