OCC 2005-18
OCC Bulletin

Subject:      Accounting and Reporting for Mortgage Loan
              Commitments
Description:  Interagency Advisory on Accounting and Reporting
              for Commitments to Originate and Sell Mortgage
              Loans

Date:  May 3, 2005

TO:  Chief Executive Officers of All National Banks,
     Department and Division Heads, and All Examining Personnel

The Office of the Comptroller of the Currency (OCC), the Board of
Governors of the Federal Reserve System (FRB), the Federal
Deposit Insurance Corporation (FDIC), the Office of Thrift
Supervision (OTS), and the National Credit Union Administration
(NCUA) are issuing jointly the attached "Interagency Advisory on
Accounting and Reporting for Commitments to Originate and Sell
Mortgage Loans."  The purpose of the advisory is to provide
additional guidance on the appropriate accounting and reporting
for commitments to originate mortgage loans that will be held for
resale and commitments to sell mortgage loans under mandatory
delivery and best efforts contracts.

Examiners have noted during examinations that some banks are not
following the appropriate accounting and reporting for
commitments to originate mortgage loans that will be held for
resale and commitments to sell mortgage loans.  Banks should
review their accounting for such commitments to ensure that they
have accounted for the commitments under generally accepted
accounting principles.  Additionally, banks should ensure that
their commitments to originate mortgage loans that will be held
for resale and commitments to sell mortgage loans have been
properly reported in their Reports of Condition and Income (call
reports).

For further information, please contact your OCC district
accountant or the OCC's Chief Accountant's office at (202) 874-
5180.




Emory W. Rushton
Senior Deputy Comptroller and Chief National Bank Examiner


Attachment:  Interagency Advisory
        [http://www.occ.treas.gov/ftp/bulletin/2005-18a.pdf]