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
Net deferred costs
Net book value Cash proceeds MSR
100,500 99,500 1,500 500
Net gain on sale
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