Guidance examines how to respond to questions about clients’ loan applications

BY KEN TYSIAC

CPAs can find nonauthoritative guidance on how to respond to requests for client information in connection with a pending loan application from Technical Question and Answer (TPA) 9110.19, which was developed by the AICPA Accounting and Auditing Technical Hotline.

Prospective borrowers are asked to furnish only limited information in connection with the no-documentation or low-documentation loans that are popular options within the lending community, especially in lending to the self-employed.

But lenders or brokers still attempt to assess a borrower’s creditworthiness and verify the accuracy of information the borrower has provided them. TPA 9110.19 provides nonauthoritative guidance for CPAs on how to answer such a request from a client, lender, or loan broker to confirm client information.

Ken Tysiac ( ktysiac@aicpa.org ) is a JofA senior editor.

SPONSORED REPORT

Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.

QUIZ

News quiz: IRS warning on cyberattacks and a change in pension rules

Once again, the IRS sounds the alarm about a threat from cyberthieves. See how much you know about this and other recent news with this short quiz.

CHECKLIST

Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.