Savings institutions must more accurately report the market value and the interest rate sensitivity of certain mortgage derivatives, the Office of Thrift Supervision said Thursday.

Under new guidelines, thrifts must account for interest rate caps and floors contained in some collateralized mortgage obligations. These instruments, known as CMO floaters, are debt obligations whose values fluctuate with market conditions. They are backed by pools of mortgages or mortgage-backed securities.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.