401(k) balance sheet for underwriter question

[bagged123]

What is the name of your state? DE

OK, after 2 months my mortgage is ready for close. But I have one question. About 2 weeks ago my LO asked for my 401(k) statement and he only needed the balance in it. Yesterday I got an email asking for all papers of my 401(K) statement. I was told that the underwriter wanted to see what stocks each fund had in it, even though the first page had the balance and how much was allocated in each fund, they wanted to see what stocks each fund I was in held.

Is that normal?

I'm asking because on my first mortgage and refi on my first house only the balance sheet was needed and not a list of each stock in all the funds that I owned in my 401(K). I thought that was kind of an odd request, but I'm not sure if something like that is normal. I know they want to see the balance if you have one, but a list like that, is that normal?

[HUD-1]

When I did a refi, they wanted the entire statement, including page 5 of 5 that was blank. They would not except just the balance... What is "normal" in the mortgage business these days?

[HomeGuru]

Originally Posted by bagged123

What is the name of your state? DE

OK, after 2 months my mortgage is ready for close. But I have one question. About 2 weeks ago my LO asked for my 401(k) statement and he only needed the balance in it. Yesterday I got an email asking for all papers of my 401(K) statement. I was told that the underwriter wanted to see what stocks each fund had in it, even though the first page had the balance and how much was allocated in each fund, they wanted to see what stocks each fund I was in held.

Is that normal?

I'm asking because on my first mortgage and refi on my first house only the balance sheet was needed and not a list of each stock in all the funds that I owned in my 401(K). I thought that was kind of an odd request, but I'm not sure if something like that is normal. I know they want to see the balance if you have one, but a list like that, is that normal?

**A: sounds normal to me.

[efflandt]

Sounds odd to me, unless you have an outstanding loan from your 401(k) (bad idea) or are approaching retirement and will need the 401(k) to make payments. Creditors cannot touch your 401(k) (or IRA's), so it should be no concern of theirs.

But I bought my home in 2002, and refi'd remaining balance in 2005 (shorter terms @ lower interest) with my original lender, so paperwork (and cost) for the refi was minimal.

But times have changed since the sub-prime fallout, so they may want to make sure that you are financially stable. Going beyond totals still seems excessive. I hope they don't try to dictate what you invest in.

[HomeGuru]

Mortgage underwriting criteria is a lot different now. What used to be out of the ordinary is now ordinary.

[HUD-1]

Yes, the URLA shows assets that you stated you had and now they want to verify the assets. No big deal, give them the statement...

[HomeGuru]

I agree. Provide whatever docs the lender requests.

[949]

it is a normal standard for all pages to be requested.

they just want to see how much reserve you have.

i have been an underwriter for many years. the rules are always changing.