ASC Mortgage stands for America’s Servicing Company. ASC is a division of Wells Fargo that services mortgages that were originated by other lenders. ASC provides managerial services for those loans, collecting the mortgage payments and handling business interactions with the borrower.
The proper accounting and reporting for mortgage servicing assets is set forth in FASB ASC 860-50. FASB ASC paragraph 860-50-25-1 (Transfers and Servicing – Servicing Assets and Liabilities) provides that an entity shall recognize a servicing asset or servicing liability each time it undertakes an obligation to service a financial asset by ...
ASC 860-40 was superseded by ASU 2009-16, Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets (originally issued as FASB Statement No. 166), which removed the concept of a qualifying special-purpose entity.
Mortgage banking involves relatively sophisticated financial activities including the creation of derivatives, hedging, and the intricacies of mortgage servicing. As a result, the accounting for these activities is relatively complex. The accounting relates to: 1. Interest rate lock commitments 2. Forward mortgage loan sales commitments 3.
ASC is a subsidiary of the leading bank known as Wells Fargo. Wells Fargo is a bank that services loans to companies such ASC. The mortgage servicing company particularly deals with maintaining and managing loans and receiving mortgage payments from customers.
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The accounting and reporting for mortgage servicing assets as set forth in FASB ASC 860-50 FASB ASC paragraph 860-50-25-1 requires that an entity recognize a servicing asset or servicing liability each time it enters into a servicing obligation which may be qualified as follows...
By definition a Mortgage Servicing Right, herein referred to as MSR(s), is a contractual agreement where the right, or rights, to service an existing mortgage are sold by the original lender to another party who, for a fee, performs the various functions required to service mortgages. As a servicer, firms are responsible for collecting borrower ...
The guidance in ASC 860 addresses not only the transferor’s accounting, but also informs the corresponding accounting by the transferee. To help you navigate this PwC guide, all references within the Transfers and servicing of financial assets guide and to other PwC guides are linked and will take you directly to the referenced guidance.
Below is an overview of FASB Accounting Standards Codification Topic 860, Transfers and Servicing, as well as a list of FASB Accounting Standards Updates (ASUs) and proposed ASUs related to this Topic. Overview. ASC 860 comprises five Subtopics (Overall, Sales of Financial Assets, Secured Borrowing and Collateral, Transfers to Qualifying Special Purpose Entities, and Servicing Assets and ...