Mortgage bankers will get a few more disclosure requirements than they hoped for in FASB's FAS 65 exposure draft, but an expected 60-day comment period probably won't help to get those requirements eased.
Despite the increased disclosure requirements, the Mortgage Bankers Association supports the FASB rule, and any opposition is expected to be minimal.
The preliminary draft imposes additional disclosure requirements for each of six loan categories, including fixed-rate government loans, conforming loans, and jumbo loans, as well as adjustable-rate government loans, conforming loans and jumbo loans.
The disclosure requirements, which are in addition to those outlined in Statement 65, include:
* Fair value of capitalized MSRs;
* Total principal balance of loans outstanding;
* Average loan balance;
* Projected weighted average life of loans serviced;
* Weighted average note rate of loans serviced;
* Weighted average service fee of loans serviced;
* Weighted average contractual maturities of loans serviced;
* Disclosures about the activity in the valuation allowances for MSRs; and
* Fair value of off-balance sheet servicing.
