At the recent Financial Accounting Standards Board (FASB) meeting on June 22, mortgage market participants - including bank regulatory agencies, investors, accountants, lawyers, the Securities and Exchange Commission (SEC) and the office of its chief accountant - gathered to discuss the issue of loan modifications and, more specifically, their application under FAS140.

The meeting was set up as an educational session, according to an attendee, to address how the loan modifications relate with the current accounting guidance. And it seemed the two coincided appropriately, as none of the regulators or FASB staff identified any fundamental issue or problem with the various loan modifications discussed under the prevailing accounting guidance.

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