The core of these basic accounting principles should be professional standards followed by every corporate accountant and every outside auditor that would insist that they can answer “yes” to these questions: “Does the accounting method selected faithfully represent the economics of the transaction?
Our goal was to produce clear and comprehensive rules to protect consumers from unfair practices while maintaining the viability of a market for responsible mortgage lending. The rules would apply stricter regulations to higher-priced mortgage loans, which we have defined broadly so as to cover substantially all of the subprime market.