8.4.4 Trade and Credit References

A. HUD requires a completed Fannie Mae Form 1006, Request for Verification of Deposit or bank statements (including a three-month average balance on the VOD or three months of consecutive bank statements) to verify Borrower’s/Principal’s liquid assets for each bank account submitted for review. Deposits and/or marketable securities of the Principal must be verified and examined in consideration of the Principal’s liquid assets reported on financial statements. Both sources should be reasonably consistent, and any significant differences should be explained. When a Principal’s financial statements show real estate owned and other mortgage debt, the credit references must include a sampling of the Principal’s mortgage payment histories and must confirm the character, business acumen, expertise and timeliness of the Principal in meeting their business obligations.

• B. A credit report with sufficient data may be used in place of trade or credit references.

C. Written inquiries of trade references should include a copy of the certification authorizing the release of credit information.