MBA Comment Letter to Financial Accounting Standards Board on its Proposed Accounting Standards Update
MBA represents over 2,200 member companies, including bank and non-bank lenders, servicers, and sub-servicers in both the residential and commercial markets. MBA members originate and sell mortgage loans as part of their business and play a vitally important role in the mortgage secondary markets. MBA supports FASB’s goal of simplifying the accounting for purchased financial assets by eliminating one of the two methods for accounting for purchased financial assets, thereby reducing complexities and comparability issues that have been identified in the current rule. MBA recommends that FASB apply this simplified method of accounting to mortgage loans purchased by an entity, regardless of when the loans were originated.