English ICA issues help on mortgage lending
Draft guidance to assist accountants working in mortgage lending enterprises or auditing their financial statements has been issued by the English ICA.
The use of externally sourced mortgage indemnity insurance to provide protection to lenders has declined. The guidance draws attention to the implications of this.
It refers to existing recommendations on loan loss provisioning by the Statement of Recommended Practice ‘Advances’ issued by the British Bankers Association and the Irish Bankers Federation.
As well as the requirements on self insurance included in FRS 12 ‘Provisions, Contingent Liabilities and Contingent Assets’. Comments are requested by 28 February.