[Kim]

You are correct Gus. =}

[Kim]

The main reason borrowers are asked for a letter from a CPA or accountant is to verify that the borrower is truly self-employed. Anyone can create tax returns. Most letters from the CPA/tax preparer just need to simply state that they have reviewed the tax returns for the past 2 years and confirm that the borrower is indeed self-employed. The lender needs to do their due diligence to cover themselves when it comes to the self-employed borrowers. Having the CPA letter would help the lender shift the responsibility of non repayment to the CPA who verified the self-employment for the borrower. Hope this helps.

[Kim]

I assume this is only on new FHA loans and won’t apply to current FHA loans correct?

[Kim]

Hello, a contract processor does the exact same work as an in-house processor. Sometimes more. I work the files from start to finish. If an MLO is uploading their own conditions to a lender, why do they need a processor at all? The entire idea of a processor is we process so LO can sell.

[Kim]

Carrington Mortgage and Mortgage Solutions of Colorado do a great job for clients with scores like this. As long as you have a good processor, these files are pretty easy to get to the closing table. =}