MBA Supports FASB Decision to Adopt Recent Guidance on FAS 157 into General Accepted Accounting Principles

John A. Courson, Chief Operating Officer of the Mortgage Bankers Association (MBA) issued the following statement regarding today's decision by the Financial Accounting Standards Board (FASB) to adopt their recent clarification of FAS 157 as part of the body of Generally Accepted Accounting Principles (GAAP), which will allow firms to adjust affected assets to reflect intrinsic values when no active market for a security exists.

'We applaud the FASB for their quick review of industry recommendations following the comment period and for the brisk implementation of this important and vital clarifying measure. By including this clarification in the body of GAAP, FASB is enabling companies to reflect the intrinsic value of their assets and increase capital and liquidity, which is significant given current market conditions. In MBA's comment letter to the FASB we indicated that in the current market, additional conditions or practice issues may arise requiring further clarification by FASB and its staff.'