mortgage banking activities

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 Every paragraph in the subtopic — Sections 05, 15, and 25 — was superseded by ASU 2014-09 (Revenue from Contracts with Customers).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.

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.