home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.


Several Lenders to Miss 10-K Filings

Sarbanes-Oxley Act blamed for delays

March 18, 2005

By COCO SALAZAR


Four mortgage lenders will be filing their annual reports late due to requirements of the Sarbanes-Oxley Act of 2002.

Impac Mortgage Holdings Inc. notified the Securities and Exchange Commission that it would miss Wednesday's deadline to file its annual report on Form 10-K for the year ended Dec. 31, 2004 as a result of the compliance measures it took when restating several periods' financial statements.

"The time and resources committed to the restatements delayed the company's internal timetable with respect to its documentation, assessment and evaluation of internal control over financial reporting, which were undertaken in order to comply with the requirements of Section 404 of the Sarbanes-Oxley Act," Impac said in the notice filing with the SEC.

"Due in large part" to complying with the act, "management's assessment of the effectiveness of the company's internal control over financial reporting was substantially delayed, thereby delaying the performance" of its independent auditor KPMG LLP, the Newport Beach, Calif.-based lender added.

Late last month, the chief executive of the Mortgage Bankers Association wrote a letter to the SEC informing there was concern amongst the industry about the negative effects, including high costs, created by complying with the particular section of the Act, which calls for companies to employ a formal structure for management and their auditors to judge the effectiveness of the internal control over financial reporting in conjunction with an audit of financial statements.

Future criticism of the scope of their testing and increased penalties for inaccurate financial reporting imposed by the act "have created an atmosphere of 'near paranoia,'" leading both company management and auditors to perform excessive testing and documentation, the MBA said, adding that amongst the cons, the act's "point in time" requirement to have management assessments and auditor opinions on internal controls tested causes operation challenges with management, finance and auditors, since all have conflicting year-end priorities.

The real estate investment trust said it expects to file the annual report by March 31.

However, the 10-K filing will include unaudited financial statements as it does not believe that time will be sufficient for KPMG to issue an audit report on its 2004 financial statements and an assessment of the effectiveness of internal control over financial reporting.

Upon receipt of KPMG's audit reports, Impac will file an amended annual report on Form 10-K/A to include these reports and audited financial statements for 2004.

Accredited Home Lenders Holding Co. also filed for a 15-day extension with SEC to turn its 10-K annual report, citing "additional demands on management and other resources in complying with both the requirements of Section 404...and the shortened 10-K filing deadline applicable to Accredited as an accelerated filer," according to a press release Wednesday.

The San Diego-based nonprime lender expects to have the report completed and filed by the March 31 extension deadline.

In Edison, N.J., Hanover Capital Mortgage Holdings Inc. announced its earnings for the fourth quarter as well as for 2004, but also informed it intended to file the Form 10-K after completion of the year-end independent audit, expected no later than the end of this month.

"We wanted to provide shareholders a preview of what we anticipate final results for the fourth quarter and the full year will be as our staff continues to work with auditors to complete the year-end review, which includes compliance with Sarbanes-Oxley," said Hanover chief financial officer J. Holly Loux in the announcement. "During the review process, we determined that our historical method of accounting for reimbursable out-of-pocket expenses needed to be adjusted, but the accounting treatment will have no impact on net income for any period covered by our 2004 annual report or any prior period."

In Troy, Mich., Flagstar Bancorp Inc. also announced it had filed for the 15-day deadline extension to issue the 10-K report to the SEC.

The lender said that "despite diligent efforts," it was unable to finish the work necessary for the 10-K, "including complying with the internal control requirements" of the Act by the March 16 due date "without unreasonable effort and expense."

Related:

Mortgage Bankers Request Relief
Mortgage lenders, frustrated with the high cost of complying with the Sarbanes-Oxley Act of 2002, have warned the Securities and Exchange Commission that investors, employees and American competitiveness may all suffer if compliance requirements don't ease up.
read story at MortgageDaily.com


Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.

email: [email protected]


SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders