A borrower receives $22,000 toward her down payment from her mother, who writes that the money need not be repaid. Under a documentation policy requiring both gift status and receipt to be verified, which records support use of the funds?
Correct Answer
A) A gift letter plus evidence the $22,000 moved between the 2 accounts
A. The gift letter and transfer evidence address both documentation requirements. The letter supports the stated absence of repayment; the transfer record supports receipt of the $22,000. Those records answer different questions. Proof of intent does not itself establish that the funds arrived. Scope and exceptions: The answer applies the policy supplied in the stem. Fannie Mae provides a concrete documentation example, but also allows specified direct-to-closing-agent evidence; account-to-account transfer is not the sole permitted method. Source: B3-4.3-04, Documentation Requirements; Verifying Donor Availability of Funds and Transfer of Gift Funds — https://selling-guide.fanniemae.com/sel/b3-4.3-04/personal-gifts
Why This Is the Correct Answer
A. The gift letter and transfer evidence address both documentation requirements. The letter supports the stated absence of repayment; the transfer record supports receipt of the $22,000. Those records answer different questions. Proof of intent does not itself establish that the funds arrived. Scope and exceptions: The answer applies the policy supplied in the stem. Fannie Mae provides a concrete documentation example, but also allows specified direct-to-closing-agent evidence; account-to-account transfer is not the sole permitted method.
Why the Other Options Are Wrong
Option B: A gift letter alone: the donor's word on the $22,000 is enough
The letter alone leaves the receipt requirement unverified.
Option C: A promissory note, because family money is treated as borrowed funds
A repayment promise would describe debt rather than the stipulated nonrepayable gift.
Option D: Nothing further: a parent's contribution is exempt from documentation
The stated policy does not waive documentation for a parent.
Exam Tip
Separate evidence of nonrepayment from evidence of the funds’ movement.
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