source:
  type: guide
  id: fnma-sel-b3-4.2-02
  authority: Fannie Mae Selling Guide B3-4.2-02 — Depository Accounts
  description: Fannie Mae Selling Guide B3-4.2-02 — Depository Accounts.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-4.2-02-full
  canonical_id: fnma-sel-b3-4.2-02-full
  section: Fannie Mae Selling Guide B3-4.2-02 — Depository Accounts
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-4.2-02 — Depository Accounts
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B3-4.2-02, Depository Accounts (12/14/2022) Introduction This
      topic contains information on depository accounts, including: Depository Accounts
      Business Assets Evaluating Large Deposits Request for Veriﬁcation of Deposit
      Published May 6, 2026 415 Depository Accounts Funds held in a checking, savings,
      money market, certiﬁcate of deposit, or other depository accounts may be used
      for the down payment, closing costs, and ﬁnancial reserves. The funds must be
      veriﬁed as described in B3-4.2-01, Veriﬁcation of Deposits and Assets. Unveriﬁed
      funds are not acceptable for the down payment, closing costs, or ﬁnancial reserves.
      The lender must investigate any indications of borrowed funds. These must be
      identiﬁed diﬀerently based upon how the asset account was veriﬁed. Business
      Assets Business assets may be an acceptable source of funds for the down payment,
      closing costs, and ﬁnancial reserves. The borrower must be listed as an owner
      of the account and the account must be veriﬁed in accordance with B3-4.2-01,
      Veriﬁcation of Deposits and Assets. If the borrower is also using self-employment
      income from this business to qualify, see Section B3-3.5, Self-Employment Income,
      for additional information on the analysis of a self-employed borrower. Evaluating
      Large Deposits A large deposit is deﬁned as a single deposit that exceeds 50%
      of the total monthly qualifying income for the loan. When bank statements (typically
      covering the most recent two months) are used, the lender must evaluate large
      deposits. See B3-4.1-04, Virtual Currency for additional information when a
      large deposit may be from virtual currency that was exchanged into U.S. dollars.
      Requirements for evaluating large deposits vary based on the transaction type,
      as shown in the table below. Transaction Type Evaluation Requirements Reﬁnance
      transactions Documentation or explanation for large deposits is not required;
      however, the lender remains responsible for ensuring that any borrowed funds,
      including any related liability, are considered. Published May 6, 2026 416 Transaction
      Type Evaluation Requirements Purchase transactions • If funds from a large deposit
      are needed to complete the purchase transaction (that is, are used for the down
      payment, closing costs, or ﬁnancial reserves), the lender must document that
      those funds are from an acceptable source. Occasionally, a borrower may not
      have all of the documentation required to conﬁrm the source of a deposit. In
      those instances, the lender must use reasonable judgment based on the available
      documentation as well as the borrower’s debt-to-income ratio and overall income
      and credit proﬁle. Examples of acceptable documentation include the borrower’s
      written explanation, proof of ownership of an asset that was sold, or a copy
      of a wedding invitation to support receipt of gift funds. The lender must place
      in the loan ﬁle written documentation of the rationale for using the funds.
      • Veriﬁed funds must be reduced by the amount (or portion) of the undocumented
      large deposit (as deﬁned above), and the lender must conﬁrm that the remaining
      funds are suﬃcient for the down payment, closing costs, and ﬁnancial reserves.
      When the lender uses a reduced asset amount, net of the unsourced amount of
      a large deposit, that reduced amount must be used for underwriting purposes
      (whether the loan is underwritten manually or through DU). Note: When a deposit
      has both sourced and unsourced portions, only the unsourced portion must be
      used to calculate whether or not it must be considered a large deposit. Examples
      • Scenario 1: Borrower has monthly income of $4,000 and an account at ABC Bank
      with a balance of $20,000. A deposit of $3,000 is identiﬁed, but $2,500 of that
      deposit is documented as coming from the borrower''s federal income tax refund.Only
      the unsourced $500 [the deposit of $3,000 minus the documented $2,500] must
      be considered in calculating whether it meets the large deposit deﬁnition.The
      unsourced $500 is 12.5% of the borrower’s $4,000 monthly income, falling short
      of the 50% deﬁnition of a large deposit.Therefore, it is not considered a large
      deposit and the entire $20,000 balance in the ABC Bank account can be used for
      underwriting purposes. • Scenario 2: Using the same borrower example, a deposit
      of $3,000 is identiﬁed, but only $500 is documented as coming from the borrower’s
      federal income tax refund, leaving $2,500 unsourced.In this instance, the unsourced
      $2,500 is 63% of the borrower’s $4,000 monthly income, which does meet the deﬁnition
      of a large deposit.Therefore, the unsourced $2,500 must be subtracted from the
      account balance of $20,000 and only the remaining $17,500 may be used for underwriting
      purposes. Published May 6, 2026 417 Note: If the source of a large deposit is
      readily identiﬁable on the account statement(s), such as a direct deposit from
      an employer (payroll), the Social Security Administration, or IRS or state income
      tax refund, or a transfer of funds between veriﬁed accounts, and the source
      of the deposit is printed on the statement, the lender does not need to obtain
      further explanation or documentation. However, if the source of the deposit
      is printed on the statement, but the lender still has questions as to whether
      the funds may have been borrowed, the lender should obtain additional documentation.
      The DU validation service automates the assessment of large deposits. When assets
      are validated, DU issues a message indicating which large deposits require documentation.
      Compliance with the DU messages satisﬁes the requirement for documenting large
      deposits. See B3-2-02, DU Validation Service Request for Veriﬁcation of Deposit
      When a Veriﬁcation of Deposit (Form 1006) (VOD) is used and depository activity
      is not included, the lender must verify the source of funds for accounts opened
      within the last 90 days of the application date, and account balances that are
      considerably greater than the average balance reﬂected on the VOD. Recent Related
      Announcements The table below provides references to recently issued Announcements
      that are related to this topic. Announcements Issue Date Announcement SEL-2022-10
      December 14, 2022 Announcement SEL-2022-04 May 04, 2022'
  judgment: false
