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Home » Store » Taxable » MBS Accounting Change Could Boost GSE Volatility

MBS Accounting Change Could Boost GSE Volatility

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The Financial Services Accounting Board this week is expected to delay implementation of a pending policy change that many expect could have a significant impact on the mortgage-securities market. As major investors in MBS, Fannie Mae and Freddie Mac could see increased volatility in their reported earnings if the new accounting standard forces them to recognize losses when the market value of certain MBS in their portfolios falls below the original cost of these assets. The
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