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Why does my mortgage co want my deposit slips if they have the bank statements?

I am refinancing two properties with the same mortgage co. I am the landlord of five properties and have large deposits into my account each month. The mortgage co wants me to write these silly two line letters to verify the source of my deposits, which is always "RENT." They have my bank statements, but now want my deposit slips! They should just tell me they think the statements are fake! It's insulting!!! WHy do they need the deposit slips if they have the statements?

jveenstra's picture
jveenstra | Joined: November 10, 2008 09:03 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

All lenders verify large deposits. They have the bank sttaements. That is where the large deposits appear so they now must verify the source of the large deposits.
No lender accepts just a sentence explaining what they are from without verifying that what is claimed is the actual source of the large deposit. The deposit slip will show multiple checks deposited which are rent checks and that veriifes what you are stating is the source.
If that is insulting, you will be insulted no matter where you apply for the mortgages.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 03:34 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Maybe I'm missing something! My deposit slips don't show the source of the deposits; just how much and whether it's cash or check, which is the same that's shown on the statements. It just seems unneccessarily redundant! I've been getting mortgages for some years now, and this was the first time I've had this request. Other ppl I know in the mortgage business were also suprised when I told them what was being asked of me. If I'm a landlord, wouldn't you expect me to show large deposits? I'm not stuffing money under a mattress each month!

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 03:34 | Post subject:

jveenstra's picture
jveenstra | Joined: November 10, 2008 09:03 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If the deposit slips just show totals, that would not verify the large deposits.
I was thinking of depost slips that show every check individually and those individual listings of checks would show rental amounts that you receive from each renter.
If your deposit slips do not list individual checks, your deposit slips would not verify the source of large deposits.
The basic guideline is that the source of large deposits must be verified if the deposits are larger and/or more frequent than normal pay checks and normal deposits.
A lender could see you deposit the same amount every month from rent and the rent deposits match up with the amount of leases you provided or the amount of rent noted on Scedule E of your federal tax return. If they ask for more documentation, that is up to the lender.

You have been getting mortgages for years and this is first such request
While sourcing large deposits has always been a guideline, prior to August, 2007, many guidleines were not required to be met. After the subprime mortgage mess hit in August, 2007, the reuirements to verify things has become much stricter. What you had to do for mortgages before August, 2007 no longer is applicable.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 03:34 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

You mortgage lenders have gotten so caught up in the red tape that you've lost your way. The bottom is and will always be, "Will the borrower pay us back"? That is the question you need to ask! Employment history, payment history, debt to income, collateral value. How do you get caught up in questioning whether or not a borrower is telling the truth about deposits or not? Give me a break.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 03:34 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

One other thing...I don't think it's a natural course for lenders to get to this point. Without government intervention and high regulation, the housing market, interest rates and banks would have been just fine. Now look what we've got!

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 03:34 | Post subject:

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