Gain on Sale an Illustration

  • A 100,000 par mortgage is sold at 99,500
  • Net deferred costs aggregate to 500
  • Expected value of mortgage servicing rights aggregates 1,500
  • No impairment charges were recognized while "held for sale"
  • Typically, "A" paper single-family mortgages are sold without recourse

Par value

Net deferred costs

100,000 500

Net book value Cash proceeds MSR

100,500 99,500 1,500 500

Net gain on sale

Was this article helpful?

+1 0

Responses

  • Claire
    What is gain on sale of mortgages?
    8 years ago

Post a comment