Finance & Accounting - Commercial

Financial and accounting issues continue to play a significant role in the way commercial and multifamily companies conduct their businesses. MBA actively participates in monitoring finance and accounting issues that effect the commercial and multifamily finance industry.
MBA Updates
  • On Monday, October 26, 2009, MBA issued the "Clarifications and Changes to the REMIC Rules" which clarifies the effects of the changes to the REMIC rules released by the IRS on September 16, 2009. This guidance was developed by the Chairs of the Commercial Board of Governors' Public Policy Committee and the CMBS Servicer Roundtable.
  • On Monday, April 30, 2007, MBA and its industry coalition partners submitted a response to the request of the Internal Revenue Service and the Treasury Department (Notice 2007-17) regarding possible amendments to the REMIC regulations for modifications of commercial mortgage loans. Click here to review response.
  • Q Status. MBA, along with other CMBS Industry representatives, have been working with the Big 4 accounting firms on the treatment of REMIC and Qualified Special Purpose Entities (QSPEs) under Financial Accounting Standards 140 (FAS 140). The issues stem from concerns expressed by the accounting firms on the current activities performed by servicers in CMBS transactions and the corresponding limitations required by REMIC and QSPEs.
  • MBA Participates in FASB Resource Group. The Financial Accounting Standards Board (FASB) has created a Resource Group to review the issues.
  • MBA Submits Comment Letters to Three FASB Exposure Drafts. FASB is engaged in three projects to amend the guidance in Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (FAS 140), which will impact the accounting for loan securitizations and transfers, as well as the initial accounting for retained beneficial interests, including mortgage servicing rights. The issues being addressed in these projects include, but are not limited to, revising the accounting for: (1) swaps of loans for agency-guaranteed mortgage-backed securities; (2) transfers of financial assets involving transferor support commitments either directly to beneficial interest holders of a qualifying SPE (QSPE) or in connection with the beneficial interests issued by the QSPE; and (3) beneficial interests (e.g. subordinated interests, retained servicing rights, etc.) retained upon the securitization of a loan.
  • Regulation AB. Visit the MBA Resource Web Page.
Related Links

MBA Uniform Single Attestation Audit Program
To purchase a guide about the Uniform Single Attestation Audit Program. Click Here
Mortgage Action Alliance
Mortgage Action Alliance (MAA)
Empower yourself with the political skills necessary to advocate issues affecting your bottom-line and the real estate finance industry.