Anil

Time to Exempt Mortgage Securities from Mark-to-Market Rules

I don't understand why they would start marking up? They own mortgage not the house. When there is risk in realizing the full amounts due due to deterioration of underlying collateral - only then they have to write down.

They can write up only to the extent the write down is due to such down turn.

Once the write down is over, more likely the write ups will be in line with historic averages for home price appreciations.

Have I missed something?