A verification of deposit (VOD) shows a $20,000 deposit two weeks before application that the borrower cannot explain. Why does this concern an underwriter?

a.Large deposits always disqualify the borrower
b.Unsourced large deposits may represent undisclosed debt or funds that are not the borrower's own
c.Deposits have no bearing on loan approval
d.Bank statements are never reviewed in underwriting

Giải thích

Underwriters must verify that funds used for down payment and reserves are the borrower's own and properly sourced. A large, unexplained deposit may be a hidden loan or borrowed funds, which affects the true debt picture, so documentation of the source is required.

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