Set Up Entities for MBS and ABS
You can set up entities for use with Mortgage- and Asset-Backed Securities at the entity and accounting basis levels.
Set Up Entities
Eagle Accounting has a field, Payup Adjustments Only, defined at the entity level that is specific to Mortgage- and Asset-Backed Securities. For a description, see Payup Adjustments Only Option Example.
Set Up Accounting Bases
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.
Options | Tag | Description |
---|---|---|
Gain/Loss on Paydowns | 1871 | 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:
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Paydown Gain Loss Account | 4519 | 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:
|
Principal Loss on Paydown Processing Flag | 2925 | Allows you to select the method in which to process the principal loss on a paydown. 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:
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IO Security Amort /Income Flag | 17387 | Determines how the system recognizes amortization and accretion on the General Ledger for securities with a processing security type (PST) of Interest Only Factor Based Debt Instrument (DBFBIO). Options include:
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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.