The Senate Finance Committee last week excluded the cost of acquiring purchased mortgage servicing rights from a bill (H.R 3040) that would establish a 16-year amortization period for many intangible costs. including the cost of acquiring goodwill. While the exclusion does not apply to mortgage servicing rights that are acquired through purchase of an institution, such as a thrift, the committee action was extremely pleasing to owners of mortgage servicing rights who actively trade them on the market.
It represents a victory after several defeats on the House side, where the situation is in flux Rep. Dan Rostenkowski, D-III., chairman of the House Ways and Means Committee, is the chief sponsor of a bill (H.R. 3035) would establish a 14-year amortization period for intangibles, including the cost of acquiring PMSRs.