Fannie Mae 60 day rule bank statements

[Franklin Graves]

My partner and I just closed on the sale of a property we owned and the money is being deposited into our joint llc account. We are in process of buying another home and sellers underwriter is asking for  60 day statement of our joint llc account. Our problem is that the account closed due to inactivity because we didn’t have money in business checking account and we reopened it. Is their any exception like a bank time stamp or letter that can get around the 60 day proof of statements needed for Fannie Mae?

[Randall Alan]

Underwriting is big on LOX (which is my broker's term for "Letters of Explanation"). Any time there is something weird, they say, Write a LOX and explain it.  If the answer is that the account closed, and you reopened it, underwriting would likely say, "Well, then, we wouldn't expect statements during those times... especially when the ones you provide show it had zero balance leading up to the closure, or whatever.  They might ask to go further back to give the most recent 60 days that exists.  It just depends on whether that is really a Fannie Mae requirement, or what the purpose of the requirement is if it is an underwriting requirement.  Usually the idea is they are looking for you to explain any large transactions.  If there were none, it might be that the 60 day thing isn't a concern.  Just explain things to the underwriter and ask them if you could provide something else.  There's really no dodging the issue, you (and they) are just looking for the solution that will satisfy the requirement. 

All the best!

Randy

@Franklin Graves