LP returns a finding of 'Caution' with the message 'Review Asset Documentation' for a borrower who provided 2 months of bank statements. The borrower's down payment funds show consistent monthly deposits. What additional documentation might LP be requesting?
Correct Answer
C) Documentation showing the source of any large or unusual deposits
When LP flags asset documentation for review, it's often because the automated system has identified deposits that appear unusual or large relative to the borrower's income pattern. Even with consistent monthly deposits, any transactions that deviate from the normal pattern may require source documentation to ensure the funds are from acceptable sources and not borrowed money.
Why This Is the Correct Answer
When LP flags asset documentation for review, it's often because the automated system has identified deposits that appear unusual or large relative to the borrower's income pattern. Even with consistent monthly deposits, any transactions that deviate from the normal pattern may require source documentation to ensure the funds are from acceptable sources and not borrowed money.
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