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Discussion Forum Index --> Accounting Questions --> Mortg

Nita105 (talk|edits) said:

27 August 2013
Hi All,

I'm new here. Thanks for having me! I work as an Accountant full-time during the day and I am a part-time tax preparer. One of my clients asked me to write a letter to their mortgage company stating that if she buys a home in another state that it will not hinder the profitability of her business. I do NOT think that her business will be adversely affected by the move and feel comfortable writing the letter. My only issue is that I am not a CPA. When she originally asked for the letter, she said that the letter should come from her CPA. I NEVER represent myself as such and always correct clients when they are mistaken. When I informed her of this, she claims to have gone back to them and explained this and said the mortgage company was okay with me not being a CPA. I am slightly uncomfortable because I don't want to have any legal issues for performing attestation services or any of my actions to be misconstrued as misrepresenting myself. I did tell the client that I needed the contact info and she gave it to me but I haven't spoken to her mortgage point person yet.

What are your thoughts on this situation? Would it be okay for me to write this letter or would I be reaching beyond the scope of what a non-certified accountant/Tax Preparer should be doing?

Thanks! Nita

CathysTaxes (talk|edits) said:

27 August 2013
Hi Nita. There's a yellow box to the right that says Search. Type in "Comfort letters" and you'll get a lot of answers, mostly advising you NOT to do so. Check with your Errors and Omissions provider.

You have no way of knowing if the purchase would hinder the profitability of the business.

I wouldn't write any letter of this type.

Captcook (talk|edits) said:

27 August 2013
Even if you are not a CPA, it would be worthwhile for you to know what the AICPA has provided on the topic. I would assert you have less (or no) ability to provide attestation services due to you not being a CPA. CPAs are specifically prohibited from making statements concerning the solvency of another party. It is a violation of professional standards to do so. There is much more at the link below...


Nita105 (talk|edits) said:

27 August 2013
Thank you. After reading your comments and the link provided, I'm not going to write the letter. What I did agree to do was issue her the stand letter from the AICPA website. This client is not trustworthy. I caught her in a lie last year and do not feel comfortable going out on a limb for her.


Thanks again for your help!

Podolin (talk|edits) said:

27 August 2013
This is one of the more interesting recent discussions on the topic. Discussion:Mortgage Letter Price- 1 point on loan

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