Letters to Mortgage Companies

[Lion]

How many of you provide letters to mortgage companies regarding you clients self employment? Do you refuse? Or, write whatever they want? Or, someplace in between? What boilerplate disclaimers do you always add? Any other comments?

Hmmm. It said it would take me to the "poll creation page" or something like that. I'll try once more...

[Bucky]

I use a form letter that is on Jennings Seminars web site. The site is www.taxspeaker.com. It basically states that you have prepared a return for the taxpayer but they should rely on their owninformation. Short and sweet.

bucky

[S T]

Mortgage Co Letters

There was another post on this that was quite good.

See http://www.thetaxbook.com/forums/sho...+agent+license

Jesse had posted his letter, which I used and adapted on a recent client request. The request was from a sub-standard company and they kept asking for my license, which I would not give to them. I did give them my PTIN # which appears on all of the tax returns that I prepare. They finally called and asked for my "CPA" license, which I then sent an email response stating that I was not a "CPA" and that my license was with the US Treasury/IRS and that I could prepare returns in all of the US states and that I was not under (in my case) a California Licensing program.

That seemed to end it.

Other lenders such as BofA, Chase, Countrywide, GMAC (DiTech) etc that are not sub-standard loans, seem to have no problem, with a simple 2 or 3 line letter on my letterhead that I have been preparing the returns for client, and that those returns over the last 2-3 years (that is all they are looking for) have contained a Schedule C.

This is so ridicuolous, as they have the client sign the form 4506 and obtain copies of the prepared tax returns.

Here is another link explaining what the mortgage companies are asking for on "stated income" loans. http://www.mymortgagebroker.com/stated-income-loans.php You will see that we are included in that list of items required, but referenced as a "CPA"

I won't lie and have lost a client or two because of it!

Sandy

[geekgirldany]

Thanks for the links Sandy. They last one I did they wanted my CPA license also. I told them I wasn't a CPA and gave them a PTIN. They said that would not do. So my customer had to take their tax return to a CPA and get him/her to write the letter. I think they paid $300 for the CPA to look over their return. My customer understood.

I have had one customer want me to put down that I prepared his taxes for two years when I had not prepared none at all. He was new. I told the mortgage compnay I would only put down that I had reviewed the tax returns only. We went back and forth several times with the mortgage company telling me "the guy is local. it isn't like he is going to run away". I told them I didn't care I wasn't going to lie.

[Lion]

Thank you, all

Thank you, all, for your comments and websites and links and... As always, I find a wealth of information here from professionals who've been there, done that.

[Brad Imsdahl]

Just a side note: TTB, page 3-11 under Did You Know?

"A paid preparer must obtain a written consent signed by the taxpayer before sending a copy of the taxpayer's return to a third party, such as a mortgage company, even if the taxpayer calls the paid preparer on the phone requesting that the preparer fax a copy of his or her return to the mortgage company. [Reg. Section 301.7216-3(a)(2)]"

[Brian EA]

fax copies

Just a side note: TTB, page 3-11 under Did You Know?

"A paid preparer must obtain a written consent signed by the taxpayer before sending a copy of the taxpayer's return to a third party, such as a mortgage company, even if the taxpayer calls the paid preparer on the phone requesting that the preparer fax a copy of his or her return to the mortgage company. [Reg. Section 301.7216-3(a)(2)]"

In order to avoid this situation , the copy of the tax return is faxed to the taxpayer.He then faxes it to whoever requests it.

brian