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

+1 0

Responses

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

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