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

Tax reform changes are now in effect

With all the recent tax law changes, this year it’s more important than ever to make sure your clients’ tax situations are squared away before year end. This report provides necessary guidance to ensure 2019 starts without a hitch.

PODCAST

Using drones to enhance audits

Hermann Sidhu, CPA, global assurance digital leader at EY, walks us through EY’s exciting new project to use drones to help audit large warehouses and outdoor inventories.