Accounting and Reporting for Mortgage Loan Commitments: Interagency Advisory on Accounting and Reporting for Commitments to Originate and Sell Mortgage Loans

The guidance attached to this bulletin continues to apply to federal savings associations.

The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the National Credit Union Administration (NCUA) are issuing jointly the attached "Interagency Advisory on Accounting and Reporting for Commitments to Originate and Sell Mortgage Loans."  The purpose of the advisory is to provide additional guidance on the appropriate accounting and reporting for commitments to originate mortgage loans that will be held for resale and commitments to sell mortgage loans under mandatory delivery and best efforts contracts.

Examiners have noted during examinations that some banks are not following the appropriate accounting and reporting for commitments to originate mortgage loans that will be held for resale and commitments to sell mortgage loans.  Banks should review their accounting for such commitments to ensure that they have accounted for the commitments under generally accepted accounting principles.  Additionally, banks should ensure that their commitments to originate mortgage loans that will be held for resale and commitments to sell mortgage loans have been properly reported in their Reports of Condition and Income (call reports).

For further information, please contact your OCC district accountant or the OCC’s Chief Accountant's office at (202) 649-6280.

Emory W. Rushton
Senior Deputy Comptroller and Chief National Bank Examiner

Related Links

• Interagency Advisory