The financial services industry and the mortgage business specifically continue to quickly evolve with upcoming implementations of significant regulatory mandates. The approval of the Basel III Capital Rule provide finance executives much to evaluate with changes to the treatment of mortgage servicing assets, securitization exposures, and equity components among others. Additionally, the Consumer Financial Protection Bureau’s (CFPB) Ability-to-Repay (ATR) and Qualified Mortgage (QM) rules as well as the National Servicing Standards (NSS) may initially appear to primarily result in new operational requirements but each also has many important implications to accounting and finance executives.
As the industry retrenches from a significant refinance boom, many participants are also focused upon strategies to improve their bottom line with reduced mortgage origination volumes. Within this publication you’ll find an article related to understanding and monitoring each driver of gain-on-sale. Finally, there continues to be considerable focus on subjective estimation from the accounting and regulatory community and this publication include articles related to estimation governance practices and servicing advance reserve considerations.
Download the Winter 2014 edition of the Consumer Finance Group Accounting and Finance Considerations to learn more about key issues impacting the consumer finance industry.