Items Tagged with 'Special purpose entity'

ARTICLES

  • $150bn of Assets May Return to BofA's Balance Sheet in 2010

    Bank of America [stock BAC][/stock] may soon bring some $150bn of off-balance-sheet assets back onto its balance in Q110 with the implementation of a new accounting rule, FAS 167, potentially pressuring its capital reserves. Of the assets the bank says it may bring to its balance sheet, home equity conduits account for an estimated $12bn, while card securitizations account for $85bn, and other variable interest entities make up the remaining $53bn, according to an equity research note by Keefe, Bruyette & Woods' (KBW) Jefferson Harralson.
    Read More
  • The Slow March to End Securitization Inches Forward

    In a feature in the very first issue of HousingWire Magazine, out this week, 15-year MBS/ABS veteran Linda Lowell tackles the question that's on most mortgage participants mind: is mortgage securitization dead? The complex answer to this question may very well lie with the Financial Accounting Standards Board and its coming proposals that will modify two separate but related standards that govern off-balance sheet securitization.
    Read More
  • Wall Street Execs Weigh in on Securitization Accounting

    In plain English, much of the securitization model that has fueled the modern mortgage market is tied to what's known as a Qualifying Special Purpose Entity -- or QSPE for short, and often called "the Q" in industry slang. QPSEs receive off-balance sheet treatment, or "sale accounting" treatment, that has largely enabled much of the growth in modern secondary markets.
    Read More
  • FASB May Delay Action on QSPEs

    In the acronym soup that's been confronting investors since the mortgage and credit mess began, perhaps none will end up more critical than the QSPE -- that's qualifying special purpose entity, a concept borne of accounting rules that allow banks and financial institutions to keep certain assets off of their balance sheets. Like MBS/ABS, for example.
    Read More
  • Are Investors Overreacting on Fannie, Freddie?

    While MBS markets firmed following Office of Federal Housing Enterprise Oversight director James Lockhart's insistence earlier this week that FASB's accounting changes should not drive capital changes at either Fannie Mae [stock FNM][/stock] or Freddie Mac [stock FRE][/stock], it's pretty clear Thursday that both the debt and equity markets are still skeptical.
    Read More
  • Revenge of the Nerds: QSPEs an Endangered Species

    It turns out that perhaps the single most powerful arbiter of industry reform isn't on Capitol Hill or in the halls of state legislature, doesn't sit on the Fed's board of governors, doesn't work for the Treasury, and isn't with the Securities and Exchange Commission. It's none other than -- drum roll, please -- the Financial Accounting Standards Board.
    Read More
  • SEC: Fast-Tracking Loan Mods Won't Jeopardize Trust Status

    The Securities and Exchange Commission has given a green light to the subprime ARM rate freeze, saying that "fast-tracked" loan modifications under the HOPE NOW plan won't jeopardize the status of mortgage securitization trusts. The SEC's Office of the Chief Accountant said in a Jan. 8 letter that the agency would not object to the plan, but that it wants more details from banks and others about loan modifications in regulatory filings.
    Read More