Centex Corp.'s announcement that its home equity lending unit would scrap gain-on-sale accounting illustrates the industry's growing dissatisfaction with the method.

The Dallas homebuilder said last week in its quarterly earnings report that its Centex Home Equity Corp. unit would switch to the portfolio method of accounting for securitized loans. From now on, the unit will book income from loans as it is received, rather than estimating and booking the entire profit on a loan when it is created.

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