ASU No. 2014-14 to Help Creditors with Government-Guaranteed Mortgage Loans
Issued by the Financial Accounting Standards Board, Accounting Standards Update (ASU) No. 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure, impacts creditors with government-guaranteed mortgage loans, counting those guaranteed by the Federal Housing Administration and the U.S. Department of Veterans Affairs. Per the ASU’s amendments, a mortgage loan is required to be derecognized and a separate other receivable be recognized upon foreclosure if the conditions below are met: The loan includes a government guarantee that is inseparable from the loan prior to foreclosure. The creditor plans to transfer the real. Read More.
Topics: Accounting Standards Update "ASU", Creditors, Debt Restructuring, Federal Housing Administration, Financial Accounting Standards Board "FASB", Foreclosure, Government-Guaranteed Mortgage Loans, U.S. Department of Veterans Affairs