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The Accounting Standards Division of the American Institute of Certified Public Accountants issued a Statement of Position on Accounting Practices in the Mortgage Banking Industry on December 30, 1974 (Statement of Position No. 74-12) outlining the Division's position on mortgage banker accounting for inventory of permanent mortgage loans held for sale and certain other accounting matters. The Division has also noted that mortgage bankers use a variety of practices in accounting for loan origination costs and loan fees and believes that it is desirable to narrow the range of those practices. The Division's recommendations with respect to accounting for origination costs and loan fees, as set forth herein, are applicable to financial statements of mortgage bankers that are intended to present financial position, results of operations or changes in financial position in conformity with generally accepted accounting principles.
Mortgage banks -- Accounting
Accounting | Taxation
American Institute of Certified Public Accountants. Accounting Standards Task Force on Mortgage Bankers, "Accounting for origination costs and loan fees in the mortgage banking industry; Exposure draft (American Institute of Certified Public Accountants), 1976, Feb. 6" (1976). Statements of Position. 359.