What is required to verify assets in a bank account?

The Mortgagee (Lender) must verify and document the existence of and amounts in the Borrower’s checking and savings accounts.  For recently opened accounts and recent individual deposits of more than 1 percent of the Adjusted Value, the Mortgagee must obtain documentation of the deposits and verify that no debts were incurred to obtain part, or all, of the Minimum Required Investment (MRI). 

If the Borrower does not hold the deposit account solely, all non-Borrower parties on the account must provide a written statement that the Borrower has full access and use of the funds.

The Mortgagee must obtain:

  • a written Verification of Deposit (VOD) and the Borrower’s most recent statement for each account; or
  • electronic verification by a Third Party Verification (TPV) vendor of the Borrower’s account covering activity for a minimum of the most recent available month, subject to the following requirements:
    • the Borrower has authorized the Mortgagee to use a TPV vendor to verify assets; and
    • the date of the data contained in the completed verification is current within 30 days of the date of the verification.

 

ALTERNATIVE DOCUMENTATION

If a VOD or direct electronic verification by a Third Party Verification (TPV) vendor is not obtained, a statement showing the previous month’s ending balance for the most recent month is required. If the previous month’s balance is not shown, the Mortgagee must obtain statement(s) for the most recent two months.  

 

For additional information see: 

Handbook 4000.1 II.A.4.d.iii(A) or II.A.5.c.iii(A) available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-02575