For a Fannie Mae purchase, a borrower with $5,200 monthly qualifying income has an unexplained $14,500 deposit needed for closing. It is not identifiable as payroll or another verified source. What is the appropriate treatment?
Correct Answer
D) Document an acceptable source before using it, or reduce verified assets by the unsourced amount and reassess sufficiency
The unsourced deposit exceeds half of monthly qualifying income. Because the purchase needs it, the lender must support an acceptable source to use it. Otherwise eligible assets are reduced and remaining funds assessed. This does not mean every large deposit in every refinance must be documented; program and transaction scope matter. Source: https://guide-selling.fanniemae.com/sel/b3-4.2-02/depository-accounts
Why This Is the Correct Answer
The unsourced deposit exceeds half of monthly qualifying income. Because the purchase needs it, the lender must support an acceptable source to use it. Otherwise eligible assets are reduced and remaining funds assessed. This does not mean every large deposit in every refinance must be documented; program and transaction scope matter. Source: https://guide-selling.fanniemae.com/sel/b3-4.2-02/depository-accounts
More Origination Questions
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