Long story short. There was a contract on 5/3 and the clients were scheduled to close on 5/26. On 5/27, the bank tells my clients that their loan may not go thru because of a large deposit that was made - before they even applied for the loan. May I add that the money was spent before they applied for the loan. My clients have more than the money they need for closing and all other paperwork is good to go. For some unearthly reason, the loan is being processed in California, but my clients are in Charlotte - the same city as the headquarters for the bank. (Not a small bank - one of the top 3) My clients have ok credit (high 6s and are putting 5% down)Is there a lending policy that I should be made aware of? Is there a method to this madness? Is there any reason I shouldn't be pushing a lender off of a ledge?

The deposit needs to be sourced to make sure the funds are seasoned for 60 days. You can ask the Loan officer why this is an issue, but chances are he or she will have to start reading the training manual to answer your question.