Question 1

What audits do mortgage bankers need to stay agency-approved?

Accepted Answer

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.

Question 2

How do agency net-worth requirements work?

Accepted Answer

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.

Question 3

What is the NMLS Mortgage Call Report and how does it tie to my financials?

Accepted Answer

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.

Question 4

How are mortgage servicing rights (MSR) accounted for?

Accepted Answer

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.

Question 5

How do you handle IRLCs and hedge accounting under ASC 815?

Accepted Answer

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.

Question 6

Does Pease Bell work with lenders outside Ohio?

Accepted Answer

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.

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Industries: Mortgage Banking