# How to foot a bank statement in a QC review

Updated September 26, 2026

Start from the opening balance, add every deposit and subtract every withdrawal on every page, then compare your figure with each printed running balance and the printed ending balance. If it doesn't foot and nothing ordinary explains it, verify with the bank, recompute funds to close without the unsupported amount, and escalate.

## Key numbers

- **60 days** of statements on a purchase; 30 days on a refinance (B3-4.2-01)
- **>50%** of total monthly qualifying income makes a single deposit "large" (B3-4.2-02)
- **30 days** to report suspected fraud to Fannie Mae after reaching a reasonable basis (A3-4-03)

## The steps

1. Tie in the opening balance. It must equal the prior month's closing balance. With only one month in the file, check it against the summary box's "previous balance".
2. Check page continuity. Pages should run "1 of 3" through "3 of 3", and each balance carried forward should match the top of the next page.
3. Recompute the running balance in posting order and compare it with the printed balance on every line. The first line where they differ is where to look.
4. Tie out the summary box. Opening plus total deposits minus total withdrawals must equal the ending balance, and your own totals of the itemized lines must match the box.
5. Check dates and sequence. Posting dates must fall inside the period and run in order. Look for gaps where payroll or recurring bills should appear.
6. Compare with the rest of the file. Payroll should match the paystubs, transfers should show on both accounts, and a tax refund should match the transcript.

## Why a statement has to foot

Fannie Mae's B3-4.2-01 accepts a bank statement only when it identifies the institution and the borrower as account holder, shows at least the last four digits of the account number, states the period covered, includes all deposit and withdrawal transactions, and shows the ending balance. Freddie Mac's list in 5501.1(e)(ii) adds any outstanding loans secured by the asset.

"All transactions" is what makes footing possible. If a statement's own lines don't produce its ending balance, either transactions are missing or some never happened.

Make sure you have the right statements first. Fannie asks for the most recent full two months (60 days) on a purchase and the most recent full month (30 days) on a refinance, or the most recent quarter for quarterly statements. If the latest statement is more than 45 days older than the application date, ask for a more recent bank-generated form. A downloaded or faxed copy must show the institution's name and the source, for example in the internet or fax banner.

## Signs of an altered statement

The Guides don't list tampering signals. None of these is a finding alone, but each is a reason to verify directly:

- fonts, alignment or number spacing that change within a column
- a balance or amount formatted differently from the lines around it
- a downloaded copy with no institution banner, which Fannie requires
- account numbers, addresses or names that differ between pages or between statements
- round-number deposits with no description

## Large deposits are a separate test

Footing checks the arithmetic; large-deposit review checks where the money came from. Fannie's B3-4.2-02 defines a large deposit as "a single deposit that exceeds 50% of the total monthly qualifying income for the loan." On a purchase, if the funds are needed for the down payment, closing costs or reserves, the lender must document an acceptable source. If it can't, "verified funds must be reduced by the amount (or portion) of the undocumented large deposit," and underwriting uses the reduced figure.

A source printed on the statement (payroll, Social Security, an IRS or state tax refund, a transfer between verified accounts) needs nothing more unless the lender still suspects borrowed funds. Refinances don't require an explanation, but borrowed funds and related liabilities still have to be considered.

Freddie Mac's 50% test in 5501.1(f) measures against monthly qualifying income plus any asset-derived income used in the DTI, and covers purchase deposits needed to qualify and made no more than 60 calendar days before the application received date.

## When the statement doesn't foot

1. Rule out a missing page, a pending or memo item, and a transfer between the borrower's own accounts that shows only on the other statement. Document what you checked.
2. Get the figures from the bank: the statement from the institution itself, or a Verification of Deposit (Form 1006) requested from and sent directly by the depository institution, complete, signed and dated.
3. In post-closing QC, compare with the origination file. D1-3-03 requires the lender to reverify all funds for the down payment, closing costs and reserves "using the original documentation" and compare the result with the origination documents "to ensure no documentation alterations were made."
4. Recompute funds to close and reserves on the verified balance only. If the reverified figures differ from what underwriting used, the loan must be re-underwritten to confirm it was eligible.
5. Escalate as possible fraud. Misrepresentation of assets is one of the fraud types Fannie lists, and once due diligence gives a reasonable basis, A3-4-03 requires notice to Fannie Mae within 30 days through Loan Quality Connect.

For mortgages sold to or serviced for Freddie Mac, report through the Tip Referral Tool. Routine reportable activity discovered in QC must be reported within 30 days after the QC results are reported in writing to senior management; activity discovered outside QC has a 30-day clock from discovery. The additional one-business-day triggers apply even when QC discovers the activity. They include specified funds or collateral events, likely significant publicity, specified judgments or law-enforcement matters, possible schemes involving more than five Freddie mortgages or at least $1 million aggregate UPB, and possible terrorist financing or money laundering. Apply the full deadline table in 3201.2(c); do not wait for the routine QC report when an urgent trigger applies.

## Worked example

The numbers are illustrative. A purchase file has a June 1–30 checking statement, pages 1 through 3. Funds required for closing and reserves are $33,500.00, and monthly qualifying income is $9,000.00.

| Date | Description | Amount | Recomputed balance |
|---|---|---|---|
| 06/01 | Opening balance | | $18,402.16 |
| 06/03 | Payroll | +$4,118.40 | $22,520.56 |
| 06/07 | Transfer to savings | −$1,500.00 | $21,020.56 |
| 06/12 | Mortgage payment | −$2,284.55 | $18,736.01 |
| 06/17 | Payroll | +$4,118.40 | $22,854.41 |
| 06/21 | Card payment | −$963.12 | $21,891.29 |
| 06/28 | IRS TREAS 310 tax refund | +$9,500.00 | $31,391.29 |

The printed ending balance is $34,091.29. Your recomputed balance is $31,391.29, so the printed figure is $2,700.00 too high. The opening balance of $18,402.16 equals the May statement's closing balance, so the problem is inside June.

Pages run 1 of 3 through 3 of 3, balances carry forward correctly, and the summary box's deposit total ($17,736.80) and withdrawal total ($4,747.67) equal the itemized lines, so no page is missing. There is no pending or memo section, and no line refers to a hold or pending credit. The only transfer is the $1,500.00 to savings, and the June savings statement shows no $2,700.00 coming back.

The $9,500.00 refund is more than 50% of $9,000.00 ($4,500.00), so it is a large deposit under B3-4.2-02. It is sourced: the statement prints the IRS as the source and the amount matches the tax transcript.

On the recomputed balance the file is $2,108.71 short of the $33,500.00 required. The printed balance would have covered it with $591.29 to spare. Order direct verification from the bank, recompute funds to close and reserves, and escalate the file for fraud review.

The lender remains responsible for verification, underwriting decisions and fraud reporting.

## FAQ

**What does footing a bank statement mean?**
Recomputing the balance from the opening balance and every transaction, then checking the result against each printed running balance, the summary box and the printed ending balance.

**Do refinance files need large deposits explained?**
No. Fannie doesn't require large deposits to be documented on a refinance, but the lender must still consider any borrowed funds and related liabilities (B3-4.2-02).

**When must suspected asset fraud be reported to Fannie Mae?**
Within 30 days after due diligence establishes a reasonable basis to conclude misrepresentation or fraud occurred, through Loan Quality Connect (A3-4-03).

## Sources

- Fannie Mae Selling Guide, published September 2, 2026: https://selling-guide.fanniemae.com/
- B3-4.2-01, Verification of Deposits and Assets (05/04/2022): https://selling-guide.fanniemae.com/sel/b3-4.2-01/verification-deposits-and-assets
- B3-4.2-02, Depository Accounts (12/14/2022): https://selling-guide.fanniemae.com/sel/b3-4.2-02/depository-accounts
- D1-3-03, Lender Post-Closing Quality Control Reverifications (04/01/2026): https://selling-guide.fanniemae.com/sel/d1-3-03/lender-post-closing-quality-control-review-data-integrity
- A3-4-03, Preventing, Detecting, and Reporting Mortgage Fraud (12/10/2025): https://selling-guide.fanniemae.com/sel/a3-4-03/preventing-detecting-and-reporting-mortgage-fraud
- Freddie Mac Guide Section 5501.1, Funds required for the Mortgage transaction (effective 08/05/2026): https://guide.freddiemac.com/app/guide/section/5501.1
- Freddie Mac Guide Section 3201.2, Fraud and other Suspicious Activity reporting requirements (effective 05/06/2026): https://guide.freddiemac.com/app/guide/section/3201.2

This guide summarizes agency requirements as of the date above. It is not legal advice.