ABSTRACT This case uses a real mortgage company that was once the tenth largest mortgage loan originator in the U.S. The case sheds light on some important accounting issues in the mortgage bank industry and on industry-specific business risks. Students are required to read AKM's financial statements; identify business risks associated with its business practices; find red flags from the multiple-period cash flow statements; and, finally, comment on its accounting of mortgage loans held for sale, mortgage loans held for investment, and securities. This financial statement analysis case can help senior-year accounting majors or graduate-level accounting or finance students to understand related accounting standards for the mortgage industry and probable earnings misstatements at mortgage banks. It also can serve as timely reading for students who are interested in the recent credit crisis.