Why this document matters
This form is utilized when a bank statement presented to Underwriting indicates a recurring withdrawal. It allows the borrower to provide an explanation for said withdrawal. The purpose of acquiring this information is to confirm that the withdrawal does not represent an undisclosed liability that could impact loan qualification. Recurring withdrawals may indicate undisclosed liabilities that could impact DTI calculations, or they may reduce available assets for down payment, closing costs, or reserves. Without proper explanation, recurring withdrawals may be treated as undisclosed liabilities, potentially affecting loan qualification.When this document is requested
This document is requested when:- Recurring withdrawal pattern identified in bank statements
- Withdrawal amount is significant relative to borrower’s income
- Withdrawal frequency is regular (weekly, bi-weekly, monthly)
- Underwriting requires explanation to rule out undisclosed debt
Required data fields
Loan information fields
Withdrawal 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).