LOE on Irregular Lump Sum Withdrawals

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This topic contains 5 replies, has 4 voices, and was last updated by  TTrumble 3 months, 3 weeks ago.

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  • #37025

    Alora
    Member

    Hello Tim,
    I need clarification on an item on my “Action Plan” section. Bank Statements – Irregular Lump Sum Withdrawals which says “Provide documentation to verify the funds/withdrawals were used for items outside the ongoing monthly expenses in order to credit the withdrawal towards payment shock savings. Fax together with a letter of explanation including the account name and number the date and amount of each withdrawal. If the bank statement indicates where the funds went documentation is not required.” I have been trying to get clarification from my MC but no luck (I guess too busy). I am not going to have any payment shock situation because my mortgage payment will not exceed my current rent payment. Please, can you shed more light on what I need to do to address this requirement?

    • This topic was modified 3 months, 4 weeks ago by  Alora.
    #37027

    dangela21
    Member

    @alora

    I’m just going to chime in. If you have made any withdrawals that reflect on your bank statement just write a letter letting them know what the withdrawal was used for. If you withdrew the funds for like car maintenance or anything like that if you have any receipts just attach them with the letter of explanation so that they can add that back into your balances. If not then they will subtract those withdrawals and it could cause you to not be able to make your payment shock for the month thus setting you back from being qualified.

    Keep in mind even though you may not have a payment shock they will still want to see some type of savings pattern each month. Your balances will need to increase from statement to statement not decrease.

    I hope this helps.

    #37028

    Alora
    Member

    @dangela21 Thanks for the response. I am assuming the LOE would be for withdrawals of $100 and above, is that correct?

    #37029

    dangela21
    Member

    @alora

    I believe so because I’ve taken out $40 and $60 at different times and I have not had to write a letter of explanation for those.

    #37038

    cantwait2own
    Member

    Honestly, it does not hurt to write LEO for everything. I “over did it” and wrote letters for EVERYTHING. I was also qualified in under 24 hours from being submitted. So letter of explanation away…. 🙂

    #37088

    TTrumble
    Member

    Hello Alora,

    Bravo to dangela21 for excellent responses and cantwait2own for a great suggestion!

    Not really much more I could add to it…

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

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