Agencies issue advisory on mortgage banking activities. (Announcements).

Federal bank and thrift regulatory agencies on February 25, 2003, jointly issued an advisory letter discussing risks related to mortgage banking activities. The letter highlights concerns and provides guidance regarding mortgage banking activities, primarily in the valuation, accounting, and hedging of mortgage servicing assets.

The guidance, issued under the auspices of the Federal Financial Institutions Examination Council (the Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision), applies to all banks and thrift institutions; however, it is primarily applicable to those …