The Financial Accounting Standards Board (FASB) has issued a proposal for public comment that would require the inclusion of servicing recapture when calculating the fair market value of mortgage servicing rights (MSRs).
Enhanced comparability and the pursuit of more uniform pricing standards across the sector were cited as drivers of the proposed amendments to generally accepted accounting principles, which firms use to book MSR values on their balance sheets.
“Stakeholders have noted that current guidance does not specifically state whether the value attributable to recapture should be included when measuring a residential mortgage servicing right,” the FASB wrote in its draft accounting standards update.
Experts who spoke with Scotsman G...