Hud requestiing bank statements from a hard money lender

[Ade O.]

I just had a deal fall apart because hud requested the hard money lender show a bank statement or letter from their bank showing they have enough funds to close the deal, when I told the lender about this they were dumbfounded, they told me that the funds was available but it would not be in the lenders account, since they pulling these fund from a pool of investors, and I spoke to more than one hard money lender and they told me the same thing(they were both willing to issue a strong letter of intent, hud said this was a new policy) I am wondering if anybody else has had this experience

[Jon Holdman]

This part doesn't makes sense. If the lender is pooling funds, then they should already have the funds available and in their (the lender's) bank account. I can see the lender being reluctant to hand over a bank statement. But if they're going to actually make the loan, and are pooling funds, they will have had to do a bunch of work, including actually collecting the money, long before this point.

OTOH, if the loan is actually coming from some other entity or person, then they should, at this point, know who that person is. And they should be able to provide a bank statement.

I've seen this done this both ways.