Mortgage Banking
Specialized mortgage audit, tax, and compliance services for independent mortgage bankers, lenders, and servicers, meeting HUD, GSE, and investor requirements with confidence.
Overview
Mortgage banking is one of the most heavily regulated corners of finance. Lenders must track shifting requirements across HUD, Fannie Mae, Freddie Mac, and Ginnie Mae, alongside warehouse, investor, and state licensing rules, where falling behind can put agency approvals, warehouse lines, and net-worth compliance at risk. From our Cleveland, Ohio headquarters, Pease Bell serves privately held mortgage lenders nationwide, from emerging originators to some of the largest in the region. We bring audit, tax, and advisory together under one roof, giving you the resources to stay compliant and audit-ready year-round in an industry that never stops changing.
How we help mortgage bankers & lenders
Integrated audit, tax, and advisory services scoped to the agency, investor, and licensing requirements that govern mortgage lending.
Agency net-worth & audited financials
Annual audited financial statements that satisfy HUD, Fannie Mae, Freddie Mac, and Ginnie Mae net-worth, liquidity, and reporting thresholds so your agency approvals and seller/servicer status stay intact.
Custodial & escrow account audits
Independent audits of principal-and-interest and escrow custodial accounts, testing reconciliation, segregation, and investor remittance controls to meet Ginnie Mae and GSE custodial requirements.
Mortgage servicing rights (MSR) support
Assistance with mortgage servicing rights valuation, fair-value measurement, and the assumptions and documentation that support your MSR carrying values under GAAP for both financial reporting and audit.
Hedging, IRLCs & ASC 815
Support for interest rate lock commitments, forward sale hedges, and derivative accounting under ASC 815, including documentation of hedge relationships and the mark-to-market that flows through your income statement.
Loan-loss & repurchase reserves
Guidance on repurchase and indemnification reserves, loan-loss estimates, and CECL considerations, so your reserves reflect actual investor exposure and withstand audit and agency scrutiny.
Tax planning & R&D credits
Federal, state, and multistate tax planning for pass-through and corporate lenders, plus R&D tax credit studies for firms investing in proprietary origination, underwriting, and servicing technology.
Contact Us
Tell us about your business and a member of our mortgage banking team will be in touch.
The pressures we help you manage
Mortgage lenders operate under overlapping oversight from federal agencies, the GSEs, warehouse banks, and state regulators, each with its own financial, net-worth, and reporting expectations. We help you keep those obligations aligned and audit-ready.
- ✓Agency net-worth thresholds — HUD, Fannie Mae, Freddie Mac, and Ginnie Mae each set minimum net-worth and liquidity requirements you must document and sustain.
- ✓NMLS Mortgage Call Report — Quarterly and annual MCR filings must reconcile to your financial statements, and reporting changes keep raising the bar.
- ✓Warehouse & investor covenants — Warehouse lines and investor agreements carry financial covenants and reporting deadlines that tie directly to your audited results.
- ✓MSR & hedging complexity — Servicing-rights valuation, IRLCs, and ASC 815 hedge accounting introduce volatility that has to be measured and disclosed correctly.
- ✓Repurchase & reserve exposure — Loan repurchase demands and indemnification claims require reserves that hold up under both agency review and financial-statement audit.
Why mortgage bankers choose Pease Bell
Deep mortgage-banking experience
We have served privately held mortgage lenders for over 25 years, from emerging originators to some of the largest in the region, so we understand agency, warehouse, and investor expectations from the inside.
Audit, tax & advisory under one roof
Your net-worth audit, tax planning, R&D credits, and risk advisory come from one connected team, eliminating handoffs and giving you a single source for compliance and strategy.
Full service, boutique touch
As a Top 200 U.S. CPA firm with 150+ professionals, we bring national resources while keeping the direct partner access and responsiveness of a boutique.
Mortgage Banking Team
Russell Burgett, CPA
Partner, Assurance Services
Vinny Galassi, CPA
Manager, Assurance Services
Jen Barnes, CPA, MT
Partner, Tax Advisory Services
Kathleen Moran, CPA, MBA, MT
Partner, Tax Advisory Services
Tim Porter, CPA, CISA, ISO 27001 LA, CITP
Partner, Risk Advisory Services
John Burcu
Director, R&D Tax Credits
Featured Insights
Mortgage banking insights from our team
Practical guidance on the agency, licensing, and reporting issues that shape mortgage lending.
- NMLS reporting
NMLS Mortgage Call Report Version 7: Preparing for 2026New MCR filing windows, components, and how to reconcile to your financials.
- FHA compliance
FHA Approved Lender Audit: The 90-Day Recertification RuleWhat the annual recertification audit requires and how to prepare.
- GSE net worth
Fannie Mae Seller Audit: Net Worth and Liquidity RulesHow GSE seller/servicer net-worth and liquidity rules affect approvals.
- HUD audit guide
HUD Consolidated Audit Guide: What the Revision Means for OwnersChanges to the HUD Consolidated Audit Guide and their impact.
- State compliance
CFPB Pulls Back, States Step Up: Mortgage Compliance in 2026Why state enforcement is filling the federal gap for lenders.
- Loss reserves
Current Expected Credit Loss (CECL) ModelHow the CECL standard changes credit-loss estimates.
- SOC reporting
SOC 2 Audit: Why Your Company Needs SOC 2 Compliance in 2026When mortgage-tech and servicing firms need a SOC 2 audit.
Mortgage banking accounting FAQs
What audits do mortgage bankers need to stay agency-approved?
Most approved mortgage bankers need annual audited financial statements that demonstrate compliance with HUD, Fannie Mae, Freddie Mac, and Ginnie Mae net-worth and liquidity requirements. Depending on your approvals, you may also need custodial account audits and internal control reporting. Pease Bell scopes each engagement to the specific agencies and investors you work with, so a single audit supports your approvals, warehouse covenants, and licensing renewals.
How do agency net-worth requirements work?
Each agency sets a minimum net worth you must maintain to keep your approval, often a base amount plus a percentage tied to your servicing or origination volume, along with liquidity minimums. Because the thresholds differ across HUD, Fannie Mae, Freddie Mac, and Ginnie Mae, we help you calculate and document net worth on a consistent basis and flag any gaps before an agency review or renewal does.
What is the NMLS Mortgage Call Report and how does it tie to my financials?
The NMLS Mortgage Call Report (MCR) is a standardized filing state regulators require through the licensing system, covering both production activity and company financial condition. Its financial condition section must reconcile to your accounting records and audited statements. We help you align your general ledger, financial statements, and MCR so the filings are consistent, defensible, and ready for the reporting changes taking effect in 2026.
How are mortgage servicing rights (MSR) accounted for?
Mortgage servicing rights are recognized as an asset and measured at either fair value or amortized cost with impairment testing under GAAP. Fair-value measurement relies on assumptions such as prepayment speeds, discount rates, and servicing costs. We help you document those assumptions, support your MSR carrying values, and prepare the disclosures your auditors and investors expect, reducing the risk of valuation questions later.
How do you handle IRLCs and hedge accounting under ASC 815?
Interest rate lock commitments are treated as derivatives, and the forward sales used to offset them are typically measured at fair value under ASC 815. Getting the timing and documentation right keeps origination margins from swinging your income statement unpredictably. We help you value IRLCs and hedges, document hedge relationships, and record the mark-to-market so your financials reflect economic reality and satisfy audit standards.
Does Pease Bell work with lenders outside Ohio?
Yes. Pease Bell is headquartered in Cleveland, Ohio and serves clients in all 50 states. Mortgage banking is national by nature, and our team supports lenders and servicers with multistate licensing, agency approvals, and investor relationships across the country. As a Top 200 U.S. CPA firm with 150+ professionals, we combine nationwide reach with the direct partner access of a boutique.