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
Deposit details fields
Explanation fields
Signature fields
Note: Borrower name and signature fields can be repeated for each borrower on the loan (up to N borrowers).
Suggested questions for data collection
Note: Questions marked with “#X” should be repeated for each borrower on the loan (up to N borrowers).