MN dhawk Posted June 6, 2012 Report Share Posted June 6, 2012 Client is refinancing home mortgage. Lender sees royalties of $300 on form 1040 which came off a broker statement. Needing an address to get ATX to efile, I used the broker's. The bank wants a letter from me explaining that client either owns that location or doesn't! This seems so insignificant an stupid that I feel that just having my letter in their file could give them some legal advantage down the road. If I don't respond, would they deny the refinance? Any comments would be appreciated. Thanks. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted June 6, 2012 Report Share Posted June 6, 2012 Using a PO BOX would have been better.... Quote Link to comment Share on other sites More sharing options...
Catherine Posted June 7, 2012 Report Share Posted June 7, 2012 Have the client give a copy of the broker statement to the lender. YOU should not give ANY letter of ANY kind to the lender; they are looking to off-load their underwriting responsibility to you. If the client ever defaults on the loan, the lender will come dunning YOU since they'll blame their decision on approving the loan to your statement. Even if all your statement says is "as far as I know this client does not pick his nose in public." Quote Link to comment Share on other sites More sharing options...
jainen Posted June 7, 2012 Report Share Posted June 7, 2012 >>a letter from me explaining that client either owns that location or doesn't<< Odd question from a lender--they are going to run their own title search anyway, so it makes no sense for you to speculate on the matter. Tell your client you can only provide a generic statement (delivered to the client, not the lender) that you prepared the tax return solely from information provided by the client without independent verification, and that your work is only intended to comply with the tax laws and may not be suitable for any other purpose. 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted June 7, 2012 Report Share Posted June 7, 2012 There are a number of generic "mortgage letters" available online if you're looking for specific wording. I have never prepared one of these letters and my clients have never pushed once I explain why the lender wants it. Nor have any of my clients been denied a loan for lack of a letter from me. Quote Link to comment Share on other sites More sharing options...
MN dhawk Posted June 7, 2012 Author Report Share Posted June 7, 2012 I explained the situation to my client and he understands since he had supplied the broker statement which explains everything. He will be back next year, even without my help. Thanks. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted June 8, 2012 Report Share Posted June 8, 2012 MOST malpractice carriers have sample letters for you to down load and use for many of these type of situations. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.