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Home » Store » News » SEC Vexes Mortgage Banking Industry With Call for New Loan Commitment Accounting

SEC Vexes Mortgage Banking Industry With Call for New Loan Commitment Accounting

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The Securities and Exchange Commission is calling for a significant change in accounting rules for loan commitments that opponents say would further squeeze lender profits and increase volatility in earnings. During an accounting conference in Washington in early December, SEC Accounting Fellow Eric Schuppenhauer said the agency has concluded that loan commitments that are recognized as derivatives should be classified as liabilities. Although there is some diversity in how different firms account for loan
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