MBS Accounting Software: FASB 91 accounting for mortgage backed securities

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Financial Data Support Systems, Inc.
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  FASB 91 - all products
  LOAN FILES - FASB 91 deferred fees income and expense amortization
  OMNIBUS - MBS, GNMA, LSBO, loan packages premiums, discount amortization
  BOND ISSUER ACCOUNTING SOFTWARE - premiums, discounts, issuance costs
  BOND PURCHASER ACCOUNTING SOFTWARE - effective interest method
  PREPAID EXPENSES - monthly amortization and reporting
  DEFERRED INCOME - monthly amortization and reporting
  FIXED ASSETS, FF&E - monthly depreciation and reporting
  NON-MONTHLY - daily, days, weeks, other periods amortization and reporting
  DEALER FEES - FASB 91 software for indirect lending charges

MBS, LSBO, CMO, Syndicated Loans, Packages and Other Investments
FASB 91 Accounting Software
     Effective Interest Method, Constant Yield
     Amortization of Premiums, Discounts, Other Fees



FASB, GAAP compliance for:
  •  Current month
  •  Prior months, restatements
  •  Future months
  •  Monthly and annual totals
  •  Calendar and fiscal years

MBS premiums and discounts:
  •  Effective interest rates
  •  FASB 91 amortization
  •  Premium expense
  •  Discount income
  •  Balances for each
  •  Par/Principal
  •  Book value
  •  Totals for all
  •  NET recap

  •  Rate changes
  •  Monthly remittances
  •  Other reductions to par
  •  Increase to par, takeouts
  •  Modifications
  •  Early payoff, sale

General ledger:
  •  Subsidiary account listing
  •  Schedule with totals
  •  Journal voucher
  •  Posting totals

Balance sheet recognition report:
  •  Beginning balances
  •  Activity
  •  Ending balances
  •  Net change
  •  Month
  •  Year

Excel interface:
  •  Import records
  •  Export records, reports
  •  Email records, reports
  •  Archive as pdf, too

  •  Software training
  •  Documentation
  •  Customization available

Install to your computer:
  •  PC, laptop, workstation
  •  Shared network drive
  •  Not "cloud based"

Software licenses:
  •  Permanent
  •  Short term - special projects

  •  Free demo
  •  Free sample reports


We just went through this year's annual audit using your software.
For the first time ever, our outside auditors gave us a clean report. Not a single footnote to our financials!
Thank you,
          New York

We used to spend days at the end of each month recalculating effective interest rates due to rate changes coupled with principal paydown reductions.
Your software does that for us now.  And a lot more.  All in a matter of seconds.
          New Mexico

I had to calculate a client's MBS portfolio going back 7 years and have no idea how it could have been done so quickly without using your software.

Need a specific answer?
email (modify) any of these questions initially posed by our clients

     REMITTANCES:  I need a system that will account for monthly remittances, rate adjustments and ....
     PREVIOUS YEARS:  I need FASB 91 amortization results for previous years going back to ....
     CONVERT:  We're thinking about converting to FASB 91 but want to preserve ....
     AUDIT:  Is there a way to verify software results?   I need to be able to ....
     MULTIPLE FUNDING:  Some packages are fulfilled over a period of several months.  Can the software handle ....
     SUBSTANDARD ASSETS:  We deal with troubled and distressed loan packages.  Is there a maximum discount that the software ....
     GENERAL LEDGER:  We use separate accounts for premiums, discounts, accruals and such.  Does the software ....
     SPECIAL PROJECTS:  Can I get the software on a temporary or short term basis for ....
     MY CLIENTS:  I need to amortize client records under FASB 91 and send them ....
     YEARLY:  I need to be able to recap a fiscal year - beginning balances, new purchases, income, expense, maturities, ending balances ....
     MULTIPLE INVESTMENTS:  We also have corporate bonds and other investments.  Can the same software ....
     CUSTOM:  I need FASB 91 software that may have to be customized in order to ....
     ONE TIME SERVICES:  I just want premiums and discounts amortized one time and get reports for ....
     NETWORKS:  More than one person needs to access the software.  How many ....
     CPR:  I want conditional prepayment rate schedules for MBS records using these assumptive rates ....
     OUTSOURCING:  Instead of buying software, can I just outsource everything to you and get monthly reports in Excel ....
     Or, ask another question

Premium and discount recognition software for dozens, hundreds, thousands of
     •  MBS bonds
     •  GNMAs, CMOs, other syndicated loans, pools
     •  LSBO
               Whole loan packages
     •  Other packaged loans
     •  Non-conforming individual loans
     •  Structured, multiple fundings
     •  Staggered pool deliveries
     •  Current month or
     •  Restatement of prior months

Complete accounting needs for these investments, too.
     •  Municipal bonds
     •  Corporate bonds
     •  Governments, agencies, notes
     •  Virtually any premium, discount instrument
     •  Fixed rate
     •  Variable rate, steps
     •  Zero rate
     •  Callable bonds, with or without a call price
               Amortize premium or discount to call date.
               If bond is not called, continue coupon interest reporting until maturity.
     •  Convertible bonds

Maintain different types of investments
     •  In one or more separate files or
     •  In the same file with MBS records
     •  The software will segregate and report records based on worksheet tabs and/or your general ledger chart of accounts

Applicable for:
     •  Purchasers
     •  Originators
     •  Seller servicers

Available as:
     •  Purchase or
     •  Special project, short term use

     •  Effective interest rate calculation at the package level 
     •  Premium amortization
     •  Discount accretion
     •  Premium and discount recognition attributed to
             par/principal repayment reductions
     •  Par and Book Value calculations
     •  Rate changes
     •  Recalculation of effective interest rate
     •  Subsidiary ledger listing with general ledger subtotals
     •  General ledger posting totals
     •  Accounting and administrative reports
     •  CPR (Conditional Prepayment Rate) projection at any rate for 1 to 120 months

Calculations and accounting reports for:
     •  Your records
     •  Client records on behalf of CPA firms, Trust Departments, Financial Advisors ....

Calculate for:
     •  Current month, fiscal year
     •  Prior month, fiscal year(s) restatement

Changes during the premium, discount amortization term ....

Reductions to Par
     •  Easily record monthly remittances for multiple records.
     •  Reduce Par for a single record due to any receipt or partial sale.

Changes to earnings Rate
     •  Change an interest rate at any time.

Increases to Par
     •  Increase Par due to multiple take-outs, additional funding.
     •  Include any additional fee associated with the increase.

When any of the above occur, the system will ....

     •  Calculate a new effective interest rate

     •  For a reduction to par,
                the system will recognize proportionate premium or discount balance
                and adjust Par and Book Value accordingly.

     •  For an increase to par without an additional fee,
               the system will adjust Par and Book Value accordingly.

     •  For an increase to par with an additional fee,
               the system will increase the current premium or discount balance
               and adjust Par and Book Value accordingly.

     •  All changes will be reflected in a detail audit amortization schedule.

Early payoff, outright sale

     •  The system will recognize remaining discount or premium in full.

Excel interface:

  •  Import records from Excel

  •  Export records, reports to Excel



                        FASB 91 CUSTOM CODE

Unique situation?  Unusual records?  New type of fees?
Different file layout?  File source?
Special internal or regulatory report?

Different configurations of the software or other products we offer may already meet your needs but, if not, we can write custom code and embed your private module within the existing nuts and bolts portion of the software.

We'd be more than happy to discuss the situation with you.


                               SOFTWARE LICENSES

The software is available under two licensing arrangements.

Permanent license:
Purchase the software and use on your PC or network sharing device just as you would buy and use other software.

Short Term license:
Many of our clients are CPA and Financial Advisory firms.
Some obtained a Short Term license to reduce the cost involved of handling a special project or need by a specific client.
     •  Includes all features of the Permanent license
     •  Organize, automate client records
     •  Transfer data and reports via email with Excel attachments
     •  Recalculate prior years under FASB 91
     •  Restate balance sheet and P&L
     •  Migrate client records from straight line to FASB 91
     •  Other services required by a client on a short term basis
     •  Provide on-going or periodically required client reports

Options for existing fee, premium and discount balances

Option 1
        Preserve your existing book values.
        No restatement or adjusting journal entries necessary.
        The software can begin amortizing current fee, premium and discount balances.

Option 2
         Calculate prior and current book values.
         The software can amortize premiums and discounts from original dates using original information.

Option 3
          Begin amortizing from an "as of" date.
         Typically the beginning of a calendar or fiscal year using balances at year end. 


                                          EVALUATE THE SOFTWARE AT NO CHARGE

Price page and free demo
Click to open and view Price page
     The price page also allows you to download a free demo.

Purchase the software or
Request the price of a Short Term License
          Ideal for special projects, client servicing and other temporary needs

Free sample reports with your records:
Send a few of your MBS bonds in an Excel file.
     •  Nothing proprietary.
     •  Label your bonds as MBS A, MBS B and so on.
We will:
     •  Import your records to the software.
     •  Generate a set of reports.
     •  Return all reports in separate worksheets in an Excel file.

Please call 1-800-245-8444 for more information or
email Free sample reports for my MBS records
(please include your first name in the body of the email)



                      ACTUAL LIFE vs. AVERAGE LIFE

The software featured on this page amortizes premiums and discounts using an effective interest rate calculated over the Actual Life of the instruments from a Beginning date to Maturity date, accounting for reductions to Par/Principal as they are received.

We also offer a separate module that can be included which will amortize premiums and discounts over a shorter period of time (typically a derived Average Life) irrespective of actual cash flow.  Premium and discount recognition is a function of the effective interest rate calculated for each.
Par/principal can be amortized as:

1)  % reduction, such as reduce par/principal each month by 8.5% of the previous month's par/principal balance.

2)  Constant par/principal reduction amount, such as reduce par/principal each month by $25,000.00.

3)  P&I, calculated as a monthly level repayment stream as would occur for a monthly amortizing instrument.




     •  Fee amortization,
     •  Premium amortization and
     •  Discount accretion software for
MBS, LSBO and other purchased and packaged loans
FASB 91 mortgage, consumer, dealer fee loans page
Bonds, FASB 91 effective interest method page

FASB 91 effective interest method recognition software for

     •  MBS bonds, mortgage backed securities

     •  ABM asset backed mortgages

     •  Packaged loans

     •  LSBO
               Participations and
               Whole loans

     •  CMOs  collateralized mortgage obligations

     •  Syndicated loan pools

     •  Non-conforming loans

     •  Distressed, substandard assets

     •  Unusual loans, heavily discounted sales and more

FASB 91 compliance software that imports all packages from an Excel file with:
     •  Package numbers, seller name, code, other identifier
     •  Begin/settlement date/purchase date
     •  Maturity date
     •  Par, principal amount
     •  Coupon/earnings/package rate
     •  Price, premium, discount, other fee adjustment to par

Create the file once.
Update monthly with current balances or reductions.

Recognize dozens, hundreds, thousands of income and expense deferrals
     •  Monthly recognition and reporting in a matter of seconds

Start amortizing "when" you want
     •  Start "as of" now
               Preserve your existing premium, discount, deferred fee general ledger balances
               No adjusting journal entries
     •  Start "as of" a prior month, prior year
               Recalculate income, expense and deferral balances from a prior period forward

The software will

•  Calculate effective interest rates

•  Amortize premiums, discounts, other deferred fee income and expense under FASB 91

•  Amortize all records at the same time

•  Provide detail amortization schedules for auditor, examiner queries

•  Generate file totals
          Total fee income
          Total fee expense
          Net:  Income minus Expense

•  Furnish general ledger posting and subsidiary account balancing

Need FASB 91 calculations NOW?

Don't have time to evaluate software?
But need fee amortization and reports?
     •  Income
     •  Expense
     •  Book values
     •  Totals
     •  For a month
     •  For an entire year
     •  Audit, regulatory support schedules
View our
STSL - Short Term Software License page

Easy to operate

•  Set up your records once

•  On a monthly basis, update with either
          Current package balances or
          Reductions to par/principal for the month

•  That's all there is to it

Automatic adjustments for 

•  Reductions and remittances in fluctuating amounts

•  Irregular, staggered paydowns, reductions to par, principal

•  Early payoffs

•  Sales, full or partial

•  Rate changes

A proven system for small and large files

•  Evaluate the software with your records at no charge

•  Qualified assistance regarding unusual requirements

•  Software customization for unique needs

•  FASB, GAAP compliance without spending a fortune

Complete monthly fee accounting and reporting

•  All monthly financial and accounting reports

•  Subsidiary ledger listing with subtotals by general ledger account
          P&L totals
          Balance sheet totals

•  Debit and credit column journal voucher

•  General ledger posting file

•  Cash flow projections and other managerial, audit reporting

•  View reports

•  Send to local or network printer

•  Export schedules and reports to Excel

Your existing records:

•  Convert and preserve recognition, accumulated and book values in order to maintain general ledger status.

•  Or, the software can recalculate records from their begin dates employing the effective interest method.

Price page and free demo  ....

Click the link to open and view price page
     Download a free demo from the price page, too.

Price page

Purchase the software or
Request the price of a Short Term License
          Ideal for special projects, client servicing and other temporary needs

Account for

  •  Loan packages - secondary market
          Fixed rate
          Variable rate
          Amortize over
               Actual life
               Estimated, average life

•  Bonds - corporate, government, other premium and discount instruments
          Variable rates, floating rates
          Unusual terms or conditions
          Reductions to par due to partial sale, other reasons
          Bonds without rate change or paydowns, too
  •  Syndicated loans, bulk loans, pools ....

  •  Mortgage backed securities

  •  Purchased loans

  •  LSBO
          Participation and whole Loans Serviced By Others

  •  Participation loans sold

  •  Discounted cash advances

  •  Originated loan groups
          Grouped by month of origination or other criteria
          Weighted average rates, terms, fees (as discount or premium)

  •  Hybrid loans
          Fee income and expense are treated as discounts and premiums
          as an adjustments to par, principal, face value such as merchant loans, other advances

  •  Other assets or liabilities with
          Premium, discount, fee income, expense, cost, charges ....
          Periodic, irregular reduction in value
          Coupon rate, interest rate, earnings rate or rate of zero
          Variable rate changes
          Maturity date or a Term in months
          Par, principal paydown reductions, curtailments
          Partial sales

The software will

 •  Calculate FASB 91 effective interest rates
          Calculate for initial values
•  Recalculate effective interest rate due to a paydown reduction, rate or other changes

  •  Determine monthly recognition of

  •  Journal voucher preparation with offsets to balance sheet accounts

  •  Report general ledger balances for
          Par/principal balance
          Premium deferral balance
          Discount deferral balance
          Carrying amount /book value

  •  Accelerate deferral recognition due to paydown/partial sale

  •  Prepare a complete set of accounting reports
          View on screen
          Send to printer
          Export schedules and reports to Excel
          Upload file with general ledger debits and credits
          Direct post or allocate to revenue and cost centers
          Supports calendar and fiscal year periods

  •  Produce a detailed recognition schedule for each record
          Normal month to month premium, discount amortization recognition
          Accelerated discount, premium recognition for principal paydown, curtailment, partial sale, payback reductions

  •  GAAP, FASB compliant
          Generate, export audit and examination reports

Excel Template
The software comes with an Excel worksheet template.
     -  Maintain records in the worksheet
     -  Update with monthly or other frequency changes
     -  Make copies of the worksheet to maintain multiple, segregated files
At any time, automatically import the worksheet.
The software:
     -  Determines premium or discount amount
     -  Calculates and recalculates FASB 91 effective interest rates
     -  Based on selected dropdown calendar month, provides:
               •  Monthly premium or discount recognition for each record
                     -  Normal recognition plus
                     -  Accelerated recognition due to paydown reductions
                     -  A detail schedule for each record provides exact breakdown and how calculated
               •  Accumulated recognition
               •  Deferred premium or discount balance
               •  Book value carrying balance
               •  Detail recognition schedule
          Summary totals of the above by category:
               •  Premium totals
               •  Discount totals
               •  All accounting reports
               •  General ledger postings and upload file using any chart of accounts
     -  View reports.  Print reports.  Export to Excel.

More about accounting and reporting ....

•  Maintain records in
     -  A single worksheet
     -  Multiple worksheets to segregate records
     -  Also applicable for records where par is not subject to reduction - mix or segregate

Import dozens, hundreds, thousands of records with:
     •  Cusip or your assigned IDentifier
     •  Par, principal balance
     •  Purchase/settlement/begin date
     •  Maturity date
     •  Coupon/interest/nominal rate
     •  Price (Par +premium or -discount) = initial carrying balance
          As $Dollar amount or %Percent
          Premium, discount can be loan fee expense, fee income
          Software establishes premium/discount amount
     •  Conversion balances, if desired
     •  Supports calendar and fiscal year
     •  Maintain records in one Excel worksheet or segregated files

Premium, discount, fee income and expense recognition
•  FASB 91 effective interest rate calculation
  •  Premium, fee amortization to income or expense
  •  Discount, fee accretion to income or expense
  •  Accelerated premium, discount, fee recognition for par/principal reduction

Automatic effective interest rate recalculation when ....
  •  Coupon/note rate changes
  •  Reductions to par/principal due to
          Remittance paydown reductions - regular and unscheduled
          Partial sale, assignment
          Accelerated premium and discount recognition to recognize reductions
  •  Increases to par/principal

Click to open  Price page
     Download a free demo from the price page, too.
Purchase the software or
Request the price of a Short Term License
       Ideal for special projects, client servicing and other temporary needs

Just gathering information?
Our customer support department would be glad to answer your questions.
Call 1-800-245-8444 or email Support@fdssi.com
Other pages of interest ....
FASB 91 products page
Loan origination fees FASB 91 amortization
Bond accounting FASB 91 amortization
Bond accounting straight line amortization
Bond issue costs FASB 91 amortization
Enter, calculate one record at a time calculator suite
CPA, auditor, financial advisor FASB 91 page
FASB 91 custom system
FASB 91 services offered


FASB 91 discount and premium effective interest method amortization
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