AICPA legislative victory: mortgage lenders still required to have annual financial statement audits.

On July 30, President Bush signed into law the massive Housing and Economic Recovery Act of 2008. The legislation was intended to assist homeowners facing foreclosure and improve oversight of mortgage giants Fannie Mae and Freddie Mac, which subsequently were seized by the federal government in mid-Sept.

The Federal Housing Authority audit requirements were not changed by Congress and the resulting law keeps in place the high standards for audits that FHA has long required: that mortgage lenders and brokers who sell FHA-insured loan products must first obtain a financial statement audit and meet minimum net worth requirements. In addition, the required compliance audit provides a check on whether lenders have complied with the laws and regulations established by the federal government in administering the federally insured FHA loan program.

Last year, Congressmen...

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