OCC Offers New Insights into Accounting for Asset Sales, Securitizations, and REO Properties
February 27, 2004
The Office of the Comptroller of the Currency is advising commercial banks that regaining control of assets previously transferred to a securitization vehicle will invalidate the characterization of the original transaction as a true sale. Previously transferred assets that revert to bank control should be booked as though they were purchased from the transferee in exchange for assuming the related liabilities, according