Refer to the previous problem. In 1984, Congress allowed G&H to sell mortgages at a loss and to amortize the loss over the remaining life of the mortgage. If this were used for the previous problem, how would the transaction have been recorded? What would be the annual adjustment? When would that end?

Data From previous problem

In mid-1980, Willem G&H issued a standard 35-year fixed rate mortgage at 8.6% for $170,000. Forty-eight months later, the mortgage rates jumped to 15%. If G&H sells the mortgage, how much of a loss is incurred?