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Eagle Accounting has several fields defined at the entity's accounting basis level that are specific to Mortgage- and Asset-Backed Securities:. They include the following.

OptionsTagDescription
Gain/Loss on

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This field is specific to Mortgage- and Asset-Backed Securities. It also applies to TRAINS, securities with a processing security type of DBIBTR. For details, see "Targeted Return Index Securities (TRAINS)."

  • Paydown Gain Loss Account (tag 4519). The Paydown Gain Loss Account (Capital or Income) field drives general ledger posting for a gain/loss caused by factor processing. For more information, see "Entity-Accounting Basis Elections."

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Paydowns1871

Specifies how the system handles the gain/loss on paydowns (repayment of part of an outstanding loan balance) for the entity/accounting basis. This field is used with factor based debt instruments such as mortgage backed securities. Options include:

  • Amortization. Default. The system records a gain/loss generated by a paydown as accelerated amortization.
  • Gain/Loss. The system generates a gain/loss on a paydown and displays the Paydown Gain Loss Account field.
Paydown Gain Loss Account4519

Determines whether the paydown on a gain/loss is posted to the capital or income ledger account for the entity/accounting basis. This field appears when you select Gain/Loss from the Gain/Loss on Paydowns field. Options include:

  • Capital. If the position is under 365 days of ownership, the system posts the gain/loss on a paydown to the Realized Gain on Investments Short Term (3006000111) and Realized Loss on Investments Short Term (3006000112) general ledger accounts. If the position is over 365 days of ownership, the system posts it to the Realized Gain on Investments (3006000101) and Realized Loss on Investments (3006000102) general ledger accounts.
  • Income. The system posts the gain/loss on a paydown to the Realized Loss on Investments (4004000102) and Realized Gain on Investments (4004000101) general ledger accounts.
Principal Loss on Paydown Processing Flag

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2925

Allows you to select the method in which to process the principal loss on a paydown.

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The system uses the Principal Loss Factor field (tag 2926) value specified for the final factor to process the principal loss. This field is specific to Asset-Backed Securities. Options include:

  • Realized Gain/Loss. Default. The system treats the portion of a paydown that is the result of a loss (write down) at a price of zero.
  • Accelerated Amortization. The system reduces the cost of the position by the total reduction of shares. The offset to cost is accelerated amortization. This field is only allowed if the Gain/Loss on Paydowns field is set to Amortization.
  • Share Adjustment. The system treats the portion of paydown that is a result of a loss (write down) as a share adjustment (increase or decrease) and does not adjust cost for the loss portion.

For general information about basis-level options, see Add a Basis to a Portfolio Panel Options for Entities and Add a Basis to a Portfolio Panel Options for Master Funds.