Banking

Federal banking regulators issued supplemental guidance to financial institutions on how they should account for and report on commitments to originate and sell mortgage loans ( www.occ.treas.gov/ftp/bulletin/ ). The institutions are required to determine which of these commitments are derivatives under FASB rules and then calculate and report their fair value. But inadequate compliance with the FASB rules has prompted the regulators—the Federal Reserve Board, the Federal Deposit Insurance Corp., the National Credit Union Administration, the Office of the Comptroller of the Currency and the Office of Thrift Supervision—to provide this additional guidance on applying FASB Statement on Standards no. 133, Accounting for Derivative Instruments and Hedging Activities, as amended by FASB Statement no. 149.