The Ground Floor
Article Abstract:
The Financial Accounting Standards Board (FASB) is considering a directive that could reduce the volume of collateralized mortgage obligations (CMOs). This could interfere with the growing mortgage securities business. The CMO is a bond collateralized by mortgage certificates. They were issued at first in three series, short-term, intermediate term and long-term, to appeal to investors with varying needs. Their tax angle is an inhibiting factor. The FASB wants now to class CMOs as debt, which could trouble mortgage bankers. This ruling would prevent many banks from any CMO activity. Bankers are planning to convey their concern and opposition to the FASB.
Publication Name: Barron's
Subject: Business, general
ISSN: 1077-8039
Year: 1984
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The Ground Floor
Article Abstract:
Dean Witter Reynolds plans to market $500 million worth of mortgage-backed securities. They anticipate a healthy demand for these securities. This is an attempt to satisfy bond holder's objections by offering certificates representing shares in mortgage pools.
Publication Name: Barron's
Subject: Business, general
ISSN: 1077-8039
Year: 1984
User Contributions:
Comment about this article or add new information about this topic: