The financial Accounting Standards Board is within three weeks of releasing its much-awaited FAS 65 exposure draft and the statement will reportedly allow for the costs of originated mortgage servicing to be recognized as assets. It will also allow excess servicing to be booked at fair value.

Mortgage bankers approved of the board's rule, but while lenders were supportive, the Mortgage Bankers Association said it still planned to recommend changes to the rule that would, specifically, alter FASB's "stratified" approach to evaluating investments in a lender's mortgage-servicing rights portfolio, and to implement a cumulative catch-up date as a means of making the financial statements of various companies more comparable.

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