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Old 08-30-2011, 10:04 PM
 
64 posts, read 78,333 times
Reputation: 27

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Is it normal for a lender to want account numbers of a gift donor? What are they going to do with it? I noticed they use Fannie Mae software, is that a standard procedure over there?
My donor is very uneasy about signing off a waver to check the sources of these funds. Beyond an affidavit stating that you gift the money to your relative, shouldn't that be it?

It's creepy.
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Old 08-30-2011, 10:29 PM
 
676 posts, read 1,747,037 times
Reputation: 514
They're afraid that lately, your relative can claim their ownership to a part of your house because they gave you money through the gift.
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Old 08-31-2011, 05:04 AM
 
Location: MID ATLANTIC
8,441 posts, read 21,760,154 times
Reputation: 9971
Actually, the requirements have always been to provide conclusive proof the funds in the buyer's control are the same funds from the donor of the gift. (Guidelines don't say they have to be in the buyer's account). This is not only a Fannie Mae requirement, but a federal requirement for all loans with any government participation (which is pretty much every mortgage out there, VA, FHA, USDA, Fannie, Freddie).

Most loan officers are very sensitive to the fact the donor is already going out on a limb for the buyer, so we do tend to do everything possible to make sure the donor is not further inconvenienced. There are ways to do this, but not one of them includes not disclosing a portion of the account number. We (meaning my bank, not sure about other companies) have a standard bank letter we have donor's bank provide that will allow the last 4 digits of their account number and this same letter also permits us to avoid requesting the donor's bank statements (another slap in the face). Basically, it says the funds for the cashier's check were in the donor's account and then the cashier's check is payable to the buyer and the title company. This is all done about a week prior to close.
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Old 08-31-2011, 06:06 AM
 
Location: Wake Forest, NC
835 posts, read 3,869,149 times
Reputation: 650
Most loan officers are very sensitive to the fact the donor is already going out on a limb for the buyer, so we do tend to do everything possible to make sure the donor is not further inconvenienced. There are ways to do this, but not one of them includes not disclosing a portion of the account number. We (meaning my bank, not sure about other companies) have a standard bank letter we have donor's bank provide that will allow the last 4 digits of their account number and this same letter also permits us to avoid requesting the donor's bank statements (another slap in the face). Basically, it says the funds for the cashier's check were in the donor's account and then the cashier's check is payable to the buyer and the title company. This is all done about a week prior to close.[/quote]


This is why you should do is talk with a LO before doing anything with your financial profile(cash/ credit etc) when buying or refinancing a home. We can tell you that if you do : A,B.C,D we'll need X,Y,Z copies and you can make them along the way. If you do it on your own or at the direction of someone else and do: A,C,B,D. you still went from A-D but got there a different way and now we need you to dig up: W,X,Y,Z.
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Old 08-31-2011, 09:37 AM
 
28,460 posts, read 81,066,211 times
Reputation: 18664
Default Sad fact of the matter...

Too few "financial professionals" are as thorough as SmartMoney. At many banks / lenders the good people got pushed out in favor of those that'll "work cheap". Those cheap workers also mindlessly adhere to regulations and not the least bit aware of how they inconvenience / anger clients.

If you get lucky and still find a thoughtful professional like SmartMoney be thankful. If you more likely get some knob job be prepared to jump through hoops / ask family for endless stream of personal info...

Quote:
Originally Posted by SmartMoney View Post
Actually, the requirements have always been to provide conclusive proof the funds in the buyer's control are the same funds from the donor of the gift. (Guidelines don't say they have to be in the buyer's account). This is not only a Fannie Mae requirement, but a federal requirement for all loans with any government participation (which is pretty much every mortgage out there, VA, FHA, USDA, Fannie, Freddie).

Most loan officers are very sensitive to the fact the donor is already going out on a limb for the buyer, so we do tend to do everything possible to make sure the donor is not further inconvenienced. There are ways to do this, but not one of them includes not disclosing a portion of the account number. We (meaning my bank, not sure about other companies) have a standard bank letter we have donor's bank provide that will allow the last 4 digits of their account number and this same letter also permits us to avoid requesting the donor's bank statements (another slap in the face). Basically, it says the funds for the cashier's check were in the donor's account and then the cashier's check is payable to the buyer and the title company. This is all done about a week prior to close.
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Old 08-31-2011, 10:11 AM
 
353 posts, read 869,102 times
Reputation: 607
My donor had to give two months of bank statements. That didn't go over too well and they were not as sensible as Smart Money. All I heard was "rules, rules, rules!!! The rules say...."
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Old 08-31-2011, 10:24 AM
 
5,268 posts, read 13,434,164 times
Reputation: 4484
In my experience, funds verification is required on FHA loans and not on conventional. However, even on conventional proof of the transfer of funds is required (i.e. a copy of the check or cashier's check that the donor gave the borrower).
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