Wednesday, July 25, 2007

U.S. SEC clarifies mortgage accounting rule

(Reuters) - Last month, 11 Democrats sent a letter to Cox seeking
clarification on the rule known as "FAS 140," which governs the
accounting for asset-backed securitized products like
mortgage-backed securities.




At issue, was whether a bank could modify a mortgage when
it is part of a pool of securities without violating the
accounting rule that allows banks to keep the mortgage-backed
securities off their balance sheets.


Read more at Reuters.com Government Filings News

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