Friday, September 14, 2007

CPA Comfort Letters

This was emailed to me by a reader. I have to wonder if this is allowed by the State Board of Accountancy?

During this boom it took three people to make a stated loan (or other toxic mortgage) happen. A lender, an appraiser and a CPA. We have already seen how things worked out for the lenders and appraisers.

The CPA had to issue a "CPA Comfort Letter". This letter provides "comfort" to the lender that that amounts stated on the loan documents are accurate for a stated income amount or stated assets:

*** New Lower Price ***
We Provide CPA Letters For Borrowers Who Do Their Own Tax Returns.
Web Site Tel. 818 248-8469
Close More Loans!
What We Do: With the increase in people preparing their own personal tax returns, and the banks requiring a letter from a Certified Public Accountant that the borrower is self-employed, we have filled the gap. Upon verification that the borrower has filed a Schedule C we will issue a letter from a Certified Public Account that the Borrower has been self-employed for the past two years.

Tel. 818 248-8469 Fax. 818 248-3081 Web Sit: email:

Other Possible reasons you may need our services:
1.) The CPA is a party to the transaction
2.) The CPA company is out of business
3.) The CPA died
4.) The CPA is no longer on good terms with the borrower
5.) The tax preparer is a bookkeeper, not a CPA


Raynor said...

3436 N. Verdugo Road #105, Glendale, CA 91208


Raynor said...


Hey Mike, another semi-scoop:

David's CPA? LLC's set up?

Funny Circus Bears said...

I've done stated income and never had to provide CPA back up, but mine have always been for very, very low LTV's.

Anonymous said...

Here's a lead for M Hart. The article in today's paper mentions Jaron Parks, an appraiser that works with Newton. Dig into his dealings. If you look at the appraisals he did, you'll find another ring, similar to C&C, with purchases, inflated values, that sit vacant and show owner occupied, with buyers that seem to trade houses, etc. Several of these high end properties have also gone into default.

Anonymous said...

Parks is known to have stollen a computer with appraisal programs and digitized signatures, so some of his work may have been conducted without Newton even knowing.. just throwing that out there, still no excuse...

Anonymous said...

It is ultimately Newton's responsibility to keep a secured signature. This could be a rumor, or an excuse that maybe Newton passed to cover his ass. Otherwise, why would Jaron still be working for him as stated in the paper?

Anonymous said...

I once worked for a lender and on occaision I would notarize loan documents. I actually had an LO ask me for my book so that she could take it to one of the buyers, in LA, to get his signature. After some comtemplation, I suggested she get her signatures, then bring it to me and I would notarize her signature as the witness. I never heard another word. She must have found some other notary to do her dirty deed. So keep in mind, there are soooooo many different individuals involved in crooked business.

Holy cow, I walked in on a loan funder forging documents, with a fellow processor as look out. And I had another processor approach me to forge a signature he couldn't. I turned him down and it never came up again. But you know after that I'm the one that can't be trusted.

Ichabod said...

FUNNY (If you ask me):

Jeriel Salinas? The agent who was arrested for stealing signs?

He owns a house on Revolution that they've tried to sell for a looooong time. 2200+ square feet. NW, two years old. The "tenants" trashed the place. They used the master bedroom closet as um... well, the "garden"? With a red light if you get my drift? So why is he staying at DC's MIL's place? Stop trying to get out of your overpriced loan and live there!

I tried to e-mail Kurt Rivera about it, wouldn't reply. Got Gretchen from Bakersfield Californian to reply. Guess they didn't think it report worthy, but she did listen.

Oh, and Channel 23 was the LAST TV station to update their website the day Crisp got raided. They still had "Breaking News" about a rolled over helicopter from the previous day. WHATEVER!

Anonymous said...

It's interesting that the media didn't ask Newton any hard questions but only softballs. Also, he stated that he did 220 appraisals for Crisp and Cole over the past three to four years at $400 each and this represents less than 1% of this business.

This means that his gross income over the past four years was at least $8.8 million dollars (do the math). This guy could tell the truth if it was easier to tell the truth than lie!!!

Anonymous said...

Wow if this Newton guy was so busy the last couple of years doing all those appraisals - what ever amount that 220 is 1% of - how did he find time to run down to Mexico every other week or so, or so it's rumored -

Anonymous said...

Jeriel purchased a house in Grand Island that's never been occupied. The landscaping looks like hell. The C&C sale sign just went down, I guess the bank has it now. I heard that Jerial & some of his buddies stripped the appliances out of it. Did I read somewhere, someone got pics?

Christians Are Forgiven said...

What you accusing him of is not possible because he is a CHRISTIAN?

Got it?

So just back off. None of that is true and even it is PROVEN to be true it still would NOT be true because of his CHRISTIAN purity. Maybe he stripped his OWN HOME in order to provide those items to the LESS FORTUNATE.

Ever think of THAT, wise guy?



Raynor said...

Ichabod: I wish these anon posters would at least leave an email addy.

I can tell you that Kioshy, Hart, and others have both been interested for a while in this embroglio, they just have trouble with "bloggers" who are anon.

Just like all the comments after yours. I would at least like to have an email addy to respond to some of them. Some of them have some "inside info" it is obvious.

xs10shell said...

I find it a sad comment on the state of the r.e. biz that the "2nd Annual Mortgage Fraud Conference" is planned for December of this year. In Las Vegas.

Ichabod said...

raynor said: can tell you that Kioshy, Hart, and others have both been interested for a while in this embroglio, they just have trouble with "bloggers" who are anon.

Just like all the comments after yours. I would at least like to have an email addy to respond to some of them. Some of them have some "inside info" it is obvious.


I sent him an e-mail. Yes I wanted to be anonymous but told him I had spoken to him before and would make it available to him that I was indeed a real estate agent. No reply. Maybe I was "spam mail."

Raynor said...

Ichabod: I did the same thing.

I think he just writes us off if we want to remain :"anonymous".

Hell, I was just trying to "point him in the right direction" not sell him a house!

I think he did same to the bubble. Seems to me I would take "hints" from anon's and then do my own leg work. I think these guys want it done for them and then be able to "check the credentials" of those that do their work for them to boot! LOL!

I don't look for KT to be breaking any new ground. Now MH OTOH......