They would need to sign a gift letter for the lending institution to honor where the money came from. 

Right placs, right time.A sense financial institutions work with a select few realtors in the areas/regions they lend in.

In Denver, the biggest employers are the airport, hospitals, universities, and financial institutions.

@Lesley ResnickThe pilot program was tailored to specific institutional investors, details that were oddly omitted by FHFA in the announcement.

I can tell you from experience underwriting deals for a number of institutional and semi-pro investors that they have achieved IRRs greater than 15% and yields greater than 8% in markets like San Francisco, LA, NY, and DC that advertise 4% cap rates.Markets with low cap rates typically share the following characteristics:1) Strong rent growth, driven by2) Strong population growth, driven by3) Strong job growth4) Low vacancy5) High per bed rents (lower operating costs as a percentage of total rent)6) Good property management options7) Higher quality tenants (young professionals like myself will rent in SF until their late 30s to early 40s)To achieve returns in these markets, investors buy buildings with significant value-add or development opportunities on very low to no leverage (debt), and refinancing the deal after stabilization to cash out.

But that makes it a desirable place for institutional investors to buy tax liens and with most counties doing their sales online it is easy for them to do so.

In addition, I found that most lending institutions within the US would prefer to lend on a property within a US entity as well Feel free to reach out me directly and we can discuss in a bit more detail.

The financial institution?

(There are exceptions to this for small creditors, less than $2 billion in assets and originates less than 500 first liens/year).QM's are institutional paper that Fannie, Freddie, VA, FHA and the like require.

That is an institutional requirement.