The white paper
(PDF 98k) discusses the application of SFAS 114 Accounting by Creditors for Impairment of a Loan–an Amendment of FASB Statements No 5 and 15
to modifications of residential mortgage loans that qualify as troubled debt restructurings. The paper is nonauthoritative and does not establish new GAAP. Rather, articulates certain existing requirements of GAAP literature as well as common accounting practices related to the specific issues discussed, with the objective of helping preparers and auditors understand the application of existing GAAP to residential mortgage loans.