What is ASC Topic 860?
This Topic comprises five Subtopics (Overall, Sales of Financial Assets, Secured Borrowing and Collateral, Transfers to Qualifying Special Purpose Entities, and Servicing Assets and Liabilities).
What FAS 166?
FAS 166 means Financial Accounting Standards Board Statement of Financial Accounting Standards No. 166, as amended, modified or supplemented from time to time.
What is transfer and servicing of financial assets?
ASC 860, Transfers and Servicing, provides comprehensive guidance to assist a transferor of financial assets to account for transactions that involve a transfer of a recognized financial asset or an interest therein.
What is secured borrowing in accounting?
A secured borrowing is a loan or debt that’s backed by collateral. The interest rate on secured borrowing is lower than that on an unsecured loan.
What is a servicing asset?
Servicing assets include amounts received by the issuing entity as proceeds of securitized assets, including proceeds of rights or other assets, whether as remittances by obligors or as other recoveries.
What is ASC Topic 946?
Change the approach to the investment company assessment in Topic 946, clarify the characteristics of an investment company, and provide comprehensive guidance for assessing whether an entity is an investment company.
How did SFAS 166 167 change the accounting for securitizations?
Taken together, SFAS 166/167 make it more difficult to obtain sale treatment of a securitization transaction and to recognize gain on sale. These standards cause securitizers to recognize more securitization entities on-balance sheet and disclose more information about securitization transactions.
What FAS 167?
FAS 167 eliminates FASB Interpretation 46(R)’s exceptions to consolidating qualifying special-purpose entities, contains new criteria for determining the primary beneficiary, and increases the frequency of required reassessments to determine whether a company is the primary beneficiary of a variable interest entity.
What is ASC Topic 326?
ASC 326 provides guidance on how an entity should measure credit losses on financial instruments and comprises three Subtopics (Overall, Measured at Amortized Cost, and Available-for-Sale Debt Securities).
How do you know if a loan is secured or unsecured?
Secured loans require that you offer up something you own of value as collateral in case you can’t pay back your loan, whereas unsecured loans allow you borrow the money outright (after the lender considers your financials).
Which is an example of a secured loan?
Examples of Secured Loans
Mortgage – A mortgage is a loan to pay for a home. Your monthly mortgage payments will consist of the principal and interest, plus taxes and insurance. Home Equity Line of Credit – A home equity loan or line of credit (HELOC) allows you to borrow money using your home’s equity as collateral.
What are 3 types of assets?
Assets are generally classified in three ways:
- Convertibility: Classifying assets based on how easy it is to convert them into cash.
- Physical Existence: Classifying assets based on their physical existence (in other words, tangible vs.
- Usage: Classifying assets based on their business operation usage/purpose.
What is a mortgage servicing asset?
A mortgage servicer may do a number of things, including servicing assets such as the following: handling monthly payments (and the statements associated with them), managing mortgage insurance fees, allocating principal and interest in your mortgage payments, managing property taxes and escrow funds and more.
What is ASC Topic 321?
ASC 321-10-35-2
If an entity identifies observable price changes in orderly transactions for the identical or a similar investment of the same issuer, it shall measure the equity security at fair value as of the date that the observable transaction occurred.
What is ASC Topic 320?
This Topic provides detailed guidance on the accounting and reporting of “investments in equity securities that have readily determinable fair values” and “all investments in debt securities.”
What is a VIE structure?
A variable interest entity (VIE) refers to a legal business structure in which an investor has a controlling interest despite not having a majority of voting rights. This is because the controlling interest is arranged via a contractual relationship rather than direct ownership.
What happens if unsecured loan is not paid?
Most lenders allow a grace period before reporting late payments to credit bureaus. However, if a loan continues to go unpaid, expect late fees or penalties, wage garnishment, as well as a drop in your credit score; even a single missed payment could lead to a 40 to 80 point drop.
What are some examples of an unsecured loan?
Unsecured loans don’t involve any collateral. Common examples include credit cards, personal loans and student loans. Here, the only assurance a lender has that you will repay the debt is your creditworthiness and your word.
How many types of secured loans are there?
Secured loans are loans which require the borrower to pledge an asset or security to avail the loan. Home loans and car loans are the most common examples of secured loans where the borrower will be required to pledge the vehicle or house to be purchased as collateral, which then become secured debt.
What are the 7 types of assets?
What are the Main Types of Assets?
- Cash and cash equivalents.
- Accounts Receivable.
- Inventory.
- Investments.
- PPE (Property, Plant, and Equipment)
- Vehicles.
- Furniture.
- Patents (intangible asset)
What are 10 examples of assets?
Tangible Assets
- Buildings.
- Cash on deposit.
- Cash on hand.
- Certificates of deposit or CDs.
- Commercial paper.
- Corporate bonds.
- Corporate stock.
- Debentures held.
What are loan servicing rights?
Mortgage servicing rights (MSR) refer to a contractual agreement in which the right to service an existing mortgage is sold by the original mortgage lender to another party that specializes in the various functions involved with servicing mortgages.
Does Rocket mortgage service their own loans?
Does Rocket Mortgage service its own loans? We service almost all our loans except for jumbo loans. For many clients, that means after you close your loan with us, you can keep using Rocket Mortgage® to manage it.
How do you determine if a company is a VIE?
4.1 Determining whether an entity is a VIE
- Lack the power to direct activities that most significantly impact the entity’s economic performance.
- Possess nonsubstantive voting rights.
- Lack the obligation to absorb the entity’s expected losses.
- Lack the right to receive the entity’s expected residual returns.
How does an entity qualify to be a VIE?
If the equity holders lack any of the following indicators of financial control, the entity is a VIE: Power to direct the activities of the entity that most significantly impact the entity’s economic performance. Obligation to absorb expected losses. Right to receive expected residual returns.