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smahari · Joined: 18 Oct 2009 Posts: 2 1.87 Dollars($)

Hi
My Brother completed the Mortgage Gift letter my mortgage financer gave me, he sign it where it says donor signature and then he took it to his bank since it requires bank signature and they also need to write his bank name and account.
Now my mortgage financer is telling me that my brother needs to give them his Bank Statements in addition to the Mortgage Gift letter. I don’t understand why they need his bank statement he is not the one buying the house I am. The person who is working on my mortgage said it is required. My brother does not want to provide his bank statement he is not comfortable with that. My question to you is it true that the donor in addition to the Gift Letter he/she also need to provide with a copy of their bank statement? The second question is where can I find that policy that says so?

Thank you

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1731 35.55 Dollars($)

The lender is asking for the bank statement to verify that the funds are avilable in your brothers account

The gift letter only does nto prove that the money is there. They will have to verify this and there is not other way unless yoru brother gives his bank statement

smahari · Joined: 18 Oct 2009 Posts: 2 1.87 Dollars($)

The Gift letter that was given to my brother have space to be completed by the bank only and they have enclosed his bank account the balance in his account and their signature, therefore they should not be asking for his bank statement, everything they need to know is in that Gift letter. Please only give answer if you work for Mortgage Company and you know what policy is.

jveenstra · Posted: Mon Oct 19, 2009 7:30 am Post subject: Bank statement

The gift letter is signed stating one is agreeing to give a gift and no repayment is required.
The copy of the bank statement is required to show the donor has the abiltity to give the gift.
Sometimes a donor does not want to disclose their personal information--they do not want to show all their assets, just the amount to be gifted. In that case, it is often acceptable that the bank write, sign and date a letter on bank letterhead stating that there is a balance in the account that is high enough to cover the gift of $XX,XXX.00.
It is up to each lender to deteremine what will they will accept as proof of "the ability to give the gift". If they want a copy of the bank statement and will not accept the letter, you have to provide what they want or find a different lender.
You are requesting to borrow a large sum of money from the bank and you need a gift from someone else to help you get that money. The bank dictates what they need to make a favorable decision to lend you that money. You must provide what they request. They set the rules, you do not.

Guest

i wish to give some money to my brother to by a morgage as a gift

gmakerley · Posted: Tue Jul 06, 2010 10:27 am Post subject:

That's nice of you, B James. Now what's your question?

Guest

If someone has closed the cd account your gift funds came from and did not transfer money into another account but was given the money in cashiers checks. How then do you give a statement showing funds in the donors account?
We have had the funds for close to 2 mos. at this point and have been dealing with the same loan officer since before teh funds were deposited. The underwriter is now requesting a statement (letter and copy of bank check have already been viewed by u/w).

Posted: Thu Aug 05, 2010 3:40 am Post subject:

You need to explain your situation to the underwriter and also need to inform you as to how you received the money. The underwriter would let you know whether or not he would still require the letter.

gmakerley · Posted: Sat Aug 07, 2010 7:44 am Post subject:

Explaining and informing won't do it. Your gift donor ought to be able to retrieve records from the bank indicating the existence and ultimate close-out of that certificate account from which your gift funds came.

As for a gift letter, which you didn't mention anyway, you'll definitely need that - along with the evidence that the funds existed in your donor's account prior to the date you received the gift and the evidence that the donor actually withdrew those funds.

Guest

My situation is slightly different in that my parents have already donated the Gift. I've faxed the Gift Letters, the deposit slips showing the money transferred into my account, my bank statements reflecting the new balance, and copies of the checks themselves.

The mortgage company I'm using, however, is still insisting on seeing my parent's bank account information. They're saying it's standard practice, that even after the funds are transferred, they need to see where they came from (i.e. what else my parents have in their account)

But I don't need anymore gifts from them, so why does it matter at this point? The money was transferred a month back, so I'm a little wary now and wondering if I made a mistake going with an internet mortgage company.

Any advice on this matter would be greatly appreciated!

Thank you.

smithsussane · Posted: Tue Sep 14, 2010 1:02 am Post subject:

Hi Chris!

Welcome to forums!

As your parents had transferred the property to you as a gift, then you can show a bank statement of your parents to the lender. This will help you in getting the loan. You should also mention that you don't need any further help from them. I don't think going for Internet mortgage company was a mistake on your part.

Feel free to ask if you've further queries.

Sussane

Guest

Sussane,

Thanks for the answer. I'm still not clear on WHY they need to see my parent's bank account, however, as the money was transferred to me some time ago. In other words, there's nothing else I need from them, so why is the mortgage company concerned about their account?

Thanks!

Guest

Requirements may vary from lender to lender. It might be a requirement for the lender to cross check the documents in order to find out where you got the gift from.

gmakerley · Posted: Fri Sep 17, 2010 11:21 am Post subject:

Chris, the lender wants to see that the funds that were transferred to you were in place for a while before the transfer. They want to be certain that your parents didn't suddenly deposit a large sum of money in their account, give it to you and that was that...sounds neat and tidy, but lenders are wary of such situations these days.

Honestly, you can't get straight answers to a lot of the questions you ask, because it's not just the lender you're speaking to who's requiring these things. Investors drive the mortgage market, so whoever the investor is who's going to be buying your loan calls the shots, and the lender in this instance simply has to follow the rules. In the same vein, you (and your parents) must also follow the rules. It's a pain, it's not easily understood, but it's a part of the 21st century method of getting a mortgage.

Guest

My brother gave me a monetary gift but I do not need it to make the down payment on a house I am purchasing so it will not be going to the bank. He has provided a gift letter but not his bank statement. My bank said they are not the ones who require it, it is the mortgage insurance company and I would not have to do this if I put 20% down instead of 15%. Is this correct? or can I skip the gift letter .

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