[quote=SK in CV]
Nope. Banks have been required to reclassify debt as soon as it’s delinquent. Including taking reasonable impairment charges. That hasn’t changed for decades. Keep in mind that the vast majority of mortgages are not owned by banks.
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This was true until the FASB changes in April of 2009. Now there’s a lot more leeway into how you want to treat asset prices. In essence it’s easier to classify something as temporary now.
[quote]
The Board decided to replace the existing requirement that the entity’s management assert it has both the intent and ability to hold an impaired security until recovery with a requirement that management assert
It does not have the intent to sell the security; and
It is more likely than not it will not have to sell the security before recovery of its costs basis.
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