Liability for comfort letter?

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#21
Beagle  
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The purpose of a comfort letter is to show the underwriter that the lender has done due diligence by just not taking the word of the borrower. Multiple people have written that their client forged their writing the comfort letter - imagine what else they falsely produced in their loan application. No financial liability is shifted.
 

#22
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Beagle wrote:The purpose of a comfort letter is to show the underwriter that the lender has done due diligence by just not taking the word of the borrower. Multiple people have written that their client forged their writing the comfort letter - imagine what else they falsely produced in their loan application. No financial liability is shifted.


But there is no substance in the letter any of us provide. On what possible consequential item is the lender still not relying completely on the borrower? If it's the fact that they filed tax returns, they should complete a 4506 or 4506-T. That's FAR more reliable than a letter from a tax preparer that, as you point out, can be forged.

As has been pointed out, lenders ask tax preparers to "certify" all kinds of information well outside the scope of what we could possibly do, let alone actually do if fees were not an issue. I believe these unreasonable requests will continue until the practice of asking for these letters ceases completely.
~Captcook
 

#23
Frankly  
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- imagine what else they falsely produced in their loan application.
No doubt similar to what they produce for the preparation of their tax returns.
 

#24
Wiles  
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:lol:
 

#25
Tax_Man  
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Here is a good resource for the subject: https://www.aicpa.org/interestareas/frc ... tters.html
Enrolled Agent
16 years with IRS (retired in 2019 with 32 years Government service). 15 years business consulting.
If you are not having fun in your career, change your career...
 

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