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Resources for bankers

Mortgage Banking

Mortgage banking generally involves loan originations, purchases, and sales of residential mortgages. A bank can retain or sell loans it originates and retain or sell the servicing on those loans. Banks can also participate in mortgage banking by purchasing rather than originating loans. Many of the loans mortgage banks sell originate under government-sponsored programs. Follow the links on this page to regulatory resources related to mortgage banking.


CA = consumer advisory
NR = news release

Accounting and Reporting for Commitments to Originate and Sell Mortgage Loans (OCC 2005-18, May 2005), Interagency Advisory
Covers mortgage loans held for resale and commitments to sell mortgage loans under mandatory delivery and best efforts contracts

Agencies Issue Final Rule for Mortgage Loans Modified under the Home Affordable Mortgage Program (NR 2009-140, November 2009), Final Rule
Covers the risk weight appropriate to mortgage loans prior to modification under the Home Affordable Mortgage Program

Agencies Issue Statement in Support of the "Making Home Affordable" Loan Modification Program (NR 2009-18, March 2009)
Covers sustainable alternatives to foreclosures on owner-occupied residential properties

Capital Treatment of Recourse, Direct Credit Substitutes, and Residual Interests, Interpretations (OCC 2002-22, May 2002), Questions and Answers
Provides interpretive guidance on issues raised by the final rule

Consumer Tips for Avoiding Mortgage Modification Scams and Foreclosure Rescue Scams (CA 2009-1, April 2009), News Release
Outlines common scams and provides consumer guidelines for appropriate actions

Implicit Recourse in Asset Securitization (OCC 2002-20, January 2002), Interagency Guidance
Highlights examples of post-sale actions taken on securitized assets that might result in additional risk-based capital requirements

Mortgage Banking (OCC 2003-9, February 2003), Interagency Advisory
Provides guidance on mortgage banking activities, primarily in the valuation and hedging of mortgage servicing assets

Nontraditional Mortgage Products (OCC 2006-41, October 2006), Final Guidance (Federal Register, October 4, 2006)
Discusses how institutions can clearly disclose the benefits and risks to borrowers of nontraditional mortgage products

Nontraditional Mortgage Products: Illustrations of Consumer Information (OCC 2007-28, August 2007), Final Guidance (Federal Register, June 8, 2007)
Provides illustrations to help institutions implement interagency guidance on nontraditional mortgage product risks (see OCC Bulletin 2006-41)

Risk-Based Capital, Recourse, Direct Credit Substitutes, and Residual Interests (OCC 2001-49, December 2001), Final Rule (Federal Register, November 29, 2001)
Covers the rule amending the regulatory capital standards to align the risk-based capital treatment of recourse obligations and direct credit substitutes

Working with Borrowers: Statement on Residential Real Estate Loan Structurings for Serviced Loans (OCC 2007-38, October 2007); Interagency Statement
Covers appropriate loss mitigation strategies and methods for identifying borrowers at risk of default

Working with Mortgage Borrowers: Interagency Statement (OCC 2007-14, April 2007)
Covers the effects of the large number of adjustable rate mortgages (ARMs) scheduled to reset, particularly subprime hybrid ARMs

See also Reverse Mortgages under Other Retail Products.