A Tale of Two Cities...or...

[erchess]

What is a Mortgage Letter?

I'm sure the PITA fee isn't listed as such on the invoice; may be a higher per hour rate, or just lumped in a total 'tax prep fee'. I don't often fire clients, but I think I just lost 2 new good ones because I refused to write a mortgage letter for them. Came down to what can I do to help my clients vs. how do I protect my *** and stick by my standards and integrity.

Hey - what is a mortgage letter and could any tax professional be asked to write one or only certain types? When I was a big box manager I was asked on one occasion to prepare a copy of the return and a letter to a mortgage company saying that the return had in fact been prepared and efiled in that office and that it was accurate and complete to the best of my knowledge.

BTW I am sure that no one tells a client "I am charging you extra for being a pita." but I expect it is fairly common.

[S T]

That's what it is

Erchess,

Just as you described, I believe, that is what is being referred to as the "Mortgage Letter". It is when your T/p is refinancing, and the loan broker or lending underwriter contacts you and says they need a letter on your letterhead stating, that the T/P is self employed and has been self-employed for at least 2 years or more and has filed tax returns including this self employment income.

Some Loan Brokers and Lending Underwriters want more or less in the letter. I always provide the least amount with a disclaimer that this is all they will receive and do not bother to contact my office for any revisions or additional wording.

This letter is a "PITA"!

Sandy

[Lion]

Other States

$50-100 for out of state returns, maybe more if lots of schedules, allocations, etc., that my software doesn't do. If they just moved here and that's why the second state, then I remind them that in a year they won't have the fee for a second state any longer. Unfortunately, the second or third state is usually due to commuting to work over the border or rental real estate in another state or something ongoing. If they're making money in another state, I'm not going to feel guilty about charging them to report that income on a second or third state return.

[veritas]

It was the highest

of prices, it was the lowest of prices.............

[joanmcq]

The mortgage letter, AKA the CPA letter, is as ST described, but a big PITA for CPAs because we are not allowed to 'attest' to something like self-employment without performing an attest engagement, which provides more procedures than anyone would want to pay for. Besides which, I have told my insurance carrier I do not do attest work. Anyways, in these situations most if not all E&O insurers say you can say nothing more than ''I prepared the return from the data the client gave me and did not otherwise audit or verify the data'. Since its a no-doc loan, they arent even providing a tax return I can say I prepared. Thats not what the lender wanted, but per my E&O people, thats what I can provide. EAs cannot provide an opinon on anything, so it is my understanding that EAs cant write them because they are a form of opinion. And in any case the insurers, the AICPA, various state CPA societies, CPE providers all say ''DONT WRITE THESE THINGS!!!' so I dont.