Document background
The Underwriter Mortgage Letter of Explanation is a critical document in the South African mortgage lending process, required when certain aspects of a mortgage application need additional clarification or context. This document is typically requested by underwriters when they identify elements in the application that require further explanation, such as employment gaps, unusual deposits, credit history events, or source of funds. The letter must comply with South African banking regulations, including the National Credit Act and FICA requirements, and serves as a formal record in the mortgage application process. It's particularly important in cases where standard application documentation doesn't fully address all aspects of the applicant's financial or personal situation that are relevant to the lending decision.
