dascpa
Level 11

I agree - don't.

I disagree - do not send them an encrypted .pdf either.

For many years in the AICPA Liability Insurance seminars we have been told lenders have been suing tax preparers if the borrower defaults - and unbelievably they have been winning these cases.  For the same reason we don't prepare verification letters; the lender wants our signature so they can sue.  Yes, anybody can sue anybody for any good or bad reason. But I'd make it a firm policy that you will provide whatever documents that are needed to the client and then let the client submit to the lender.

I have lost individual clients because I will not do a verification letter for a refinance or similar.  I'm pissed at first but in the end I still know it's the proper thing to do.