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
| 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 |
Withdrawal details fields
| Field Name | Type | Required | Data Source | Notes |
|---|---|---|---|---|
| Withdrawal amount | Number | Yes | User input | Amount in dollars, positive number |
| Bank name | String | Yes | User input | Name of financial institution where withdrawal occurs |
| Frequency | Enum | Yes | User input | Enum values: WEEKLY, BI_WEEKLY, MONTHLY, OTHER |
| Other frequency | String | Conditional | User input | Required if frequency = OTHER |
Explanation fields
| Field Name | Type | Required | Data Source | Notes |
|---|---|---|---|---|
| Explanation | String | Yes | User input | Detailed explanation for the recurring withdrawal, 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 withdrawal amount?” | Number input | Required, positive number, format: currency |
| ”What is the name of the bank where the withdrawal occurs?” | Text input | Required, name of financial institution |
| ”What is the frequency of this withdrawal?” | Enum selection | Required, select from enum values: WEEKLY, BI_WEEKLY, MONTHLY, OTHER |
| ”If ‘Other’, please specify the frequency:“ | Text input | Required if frequency = OTHER |
| ”Please provide a detailed explanation for this recurring withdrawal” | Text area | Required, detailed explanation of withdrawal purpose and why it’s not an undisclosed liability |
| ”Please sign and date this document” | E-signature | Required, includes timestamp |