Freddie Mac Large Deposit Sourcing in 2026: 60-Day Window and Non-US Funds

Freddie Mac's guidelines for large deposit sourcing have always been a critical component of mortgage underwriting, but recent updates have introduced tighter controls. Per the Freddie Mac Seller/Servicer Guide (updated by Bulletin 2026-7), the focus has shifted to a 60-day window for sourcing large deposits, with additional considerations for funds originating outside the United States. This post will explore these changes and their implications for mortgage brokers.

What is considered a large deposit by Freddie Mac?

According to the Freddie Mac Single-Family Seller/Servicer Guide (Section 5101.3), a "large deposit" is defined as any single deposit exceeding 50% of the sum of the borrower's total monthly qualifying income and the amount derived from the asset calculation for the debt-to-income (DTI) ratio. This definition is crucial for brokers to understand, as failing to properly source such deposits can lead to conditions or even denials.

Why is the 60-day sourcing window important?

Freddie Mac's new 60-day sourcing requirement, as outlined in Bulletin 2026-7, mandates that the source of any large deposit must be verified if it was made within 60 calendar days preceding the application received date. This change emphasizes the need for timely documentation and verification, ensuring that the funds are legitimate and belong to the borrower.

For purchase transactions, the Freddie Mac Single-Family Seller/Servicer Guide (Section 5307.1) specifies that the deposit must be documented if it is needed to qualify the borrower. This means that brokers must be diligent in gathering documentation for any large deposits that fall within this 60-day window.

How should brokers handle non-US funds?

Funds originating from outside the United States present additional complexities. According to Section 5501.3 of the Freddie Mac Single-Family Seller/Servicer Guide, such funds must be transferred into a U.S.- or state-regulated financial institution and verified in U.S. dollars before closing. If these funds are considered large deposits, the same 60-day sourcing requirements apply.

This requirement ensures that all funds used in the transaction are traceable and comply with U.S. financial regulations. Brokers must ensure that clients with international funds understand the need to transfer and document these funds well in advance of closing.

What documentation is required for large deposits?

When a large deposit is identified, brokers must provide documentation that verifies the source of the funds. Acceptable sources include:

• The borrower's income
• Court-awarded settlements or lottery winnings
• Funds from eligible asset types as described in Sections 5501.3 and 5307.1

If the source is clearly identifiable from account statements, such as direct payroll deposits, additional documentation may not be necessary. However, if the source is not immediately apparent, additional documentation will be required to satisfy Freddie Mac's guidelines.

How can brokers ensure compliance with these guidelines?

To ensure compliance with Freddie Mac's guidelines, brokers should implement the following practices:

1. Early Identification: Review bank statements as soon as possible to identify any large deposits that require sourcing.

2. Document Collection: Gather necessary documentation promptly, especially for deposits within the 60-day window and for funds originating outside the U.S.

3. Clear Communication: Educate borrowers about the importance of documenting the source of large deposits and the potential impact on their mortgage application.

4. Use Technology: Use software tools to track deposit sourcing and document collection, ensuring that nothing falls through the cracks.

5. Stay Informed: Regularly review updates to Freddie Mac's guidelines to ensure that your practices remain compliant.

What are the consequences of failing to verify large deposits?

Failure to properly verify large deposits can result in significant delays or even the denial of a mortgage application. As brokers, it's essential to understand that these guidelines are in place to prevent fraud and ensure the financial stability of the transaction.

By adhering to the 60-day sourcing requirement and properly documenting all large deposits, brokers can help ensure a smoother underwriting process and a successful closing for their clients.

For more on agency mortgage guidelines, see the Agency Guidelines hub.

This article is for informational purposes only and is not professional advice. Always verify against current guidelines before making decisions.