Why this document matters
This form is used when a bank statement submitted to Underwriting reveals a large deposit, deemed unusual given the borrower’s income, or if it significantly increases the asset’s overall balance within the last 60 days. It enables the borrower to provide an explanation for the deposit or deposits in question. Large deposits may indicate unverified income sources, gift funds, asset transfers, or loan proceeds. Without proper explanation, large deposits may be excluded from asset calculations or require additional verification, potentially impacting loan qualification. Note: The definition of “large deposit” varies by investor but is often >50% of verified monthly income.When this document is requested
This document is requested when:- Deposit amount exceeds investor-defined threshold (often >50% of verified monthly income)
- Deposit occurs within 60 days of loan application
- Deposit pattern is inconsistent with borrower’s income history
- Asset balance increases significantly due to a single deposit
Required data fields
Loan information fields
| Field Name | Type | Required | Data Source | Notes |
|---|---|---|---|---|
| Loan number | String | Yes | Loan entity | Alphanumeric identifier |
| Borrower name | String | Yes | Borrower entity | Full legal name, repeatable for N borrowers |
| Property address | String | Yes | Loan entity | Full street address of property being financed |
Deposit details fields
| Field Name | Type | Required | Data Source | Notes |
|---|---|---|---|---|
| Deposit amount | Number | Yes | User input | Amount in dollars, positive number |
| Bank name | String | Yes | User input | Name of financial institution where deposit was made |
| Date of deposit | Date | Yes | User input | Date deposit was made, format: MM/DD/YYYY |
Explanation fields
| Field Name | Type | Required | Data Source | Notes |
|---|---|---|---|---|
| Explanation | String | Yes | User input | Detailed explanation for the deposit, free text |
Signature fields
| Field Name | Type | Required | Data Source | Notes |
|---|---|---|---|---|
| Borrower signature | Signature | Yes | E-signature | Digital signature with timestamp, repeatable for N borrowers |
| Signature date | Date | Yes | E-signature | Auto-populated on signature, repeatable for N borrowers |
Suggested questions for data collection
| Question | Response Type | Validation |
|---|---|---|
| ”Borrower #X: What is your full legal name?” | Text input | Required, min 2 words, repeat for each borrower |
| ”What is the property address?” | Text input | Auto-populated from loan entity |
| ”What is the deposit amount?” | Number input | Required, positive number, format: currency |
| ”What is the name of the bank where the deposit was made?” | Text input | Required, name of financial institution |
| ”What is the date of the deposit?” | Date | Required, format: MM/DD/YYYY, cannot be future date |
| ”Please provide a detailed explanation for this deposit” | Text area | Required, detailed explanation of deposit source and purpose |
| ”Please sign and date this document” | E-signature | Required, includes timestamp |