Underwriter Request for "Terms of Withdrawal" from non-retirement brokerage accounts

Question

I am set to close on a property (missed friday closing date because of this UW issue) and the UW has demanded that I provide "terms of withdrawal for my schwab and fidelity regular (non-retirement) brokerage accounts.  I have searched on the internet and these forums and have not seen such a requirement for anything besides retirement accounts.  While this requirement is easy to satisfy for a retirement account as there are documents related to withdrawal restrictions, I cannot find anything that will satisfy the UW for these accounts.  They essentially want me to prove that I can turn stocks in my brokerage account into cash and access these funds, which is of course obviously true with regard to any brokerage account.   I have provided both schwab and fidelity account agreements and statements that show routine cash withdrawals, but this still does not satisfy them.  Both Schwab and Fidelity are puzzled by this request but have agreed to provide letters, but they cannot provide them immediately as any communications need sign off.  I was told that Fidelity could take 3 business days tor more o provide a letter.  As we have already missed a friday closing deadline and would like to close Monday, is there anything I can provide to satisfy this request immediately?  I think the request is obviusly absurd and I am working to have it removed, but any advice would be appreciated. 

Answer 1

IOBA wrote:
I know this thread is a few days old, but maybe the information will be helpful to someone. I had a similiar, absurd requirement as well from UW.  They wanted to know how exactly how I could withdraw the funds from my retirement account even though the account was not being considered for reserves or the downpayment.  They also wanted to know how exactly I could withdraw the funds from my line of credit and the exact amount of available credit. For the retirement account - I wrote a short paragraph and explained there is no document that would satisfy their requirement, even though I had asked.  The best I could do is provide screen shots showign the current balance of the retirement account, a screen shot of the two methods for withdrawing funds, and screen shots of both applications (one is for home buying and one is for personal/emergency loan.) For the line of credit - I walked into the branch, sat down with a customer service rep, explained the situation, and asked for a letter stating how much money was available on the LOC, how quickly I could transfer the funds from the LOC to my checking account, and when those funds would be available.  The CSR, shaking her head and mumbling under her breath about how insane the requirement was, did that.  She also printed out a screen shot of my account (checking and LOC), stamped, signed, and dated it. The UW accepted both methods of verification.  The LOC was being used for my down payment.  I had more than enough reserves (cash) in the bank to cover the required amount and then some, but my lender said not to use it/provide the bank statements becuase it would open up a can of  worms explaining the regular deposits into the account, etc.  (I didn't argue - I let it be.  Keep is simple!)Ha.  This is exactly what is going on right now re: can of worms.  I got the the absurd statements from fidelity and schwab that basically say "the account holder can withdrawal his money on demand" (it also noted that this was the case because they are non-retirement accounts, which is why this request was so absurd to begin with) , the underwriter has come back with additional requests relating to all my deposits.  As I gathered money from three separate brokerage accounts in order to wire the money from one place, they are asking for all sorts of proof that the money came from those accounts.  I think I have provided that now but the underwriter has now gone dark and we are in danger of missing closing for the third straight day after a friday deadline.  I am extremely frustrated at the UW, but also with my LO for overdocumenting this loan and inviting all of these ridiculous questions.