- #1
- 7,861
- 1,600
Recently, I've encountered two examples of how the Federal Housing Adminsitration requires banks to scrutinize borrowers who acknowledge receiving gifts of money to help purchase a house. The banks require an "affidavit of gift" document from the giver and a copy of a bank statement showing that the gift funds were withdrawn from an account - a copy with the account number showing, not redacted.
What abuses led to these regulations? Were people doing a type of pyramid scheme where they borrowed money from one bank and gifted it to themselves to bolster the financial statements they submitted to a different bank?
What abuses led to these regulations? Were people doing a type of pyramid scheme where they borrowed money from one bank and gifted it to themselves to bolster the financial statements they submitted to a different bank?