I swear to god I'm going to have a heart attack going through this mortgage process, no joke. 
Due to the bank's fault, the earnest deposit check I wrote to the builder bounced and caused an NSF fee on my account, and I was just approved in underwriting yesterday! I called the bank this morning furious and spent over an hour and a half on the phone with a manager who reversed the NSF fee and said the check to the builder will still go through plus they are writing a letter stating the NSF wasn't my fault, but they claim they can't delete the NSF actually showing on the bank statement (which the underwriter still needs to see to show the cleared earnest deposit).
I seriously cannot believe this is happening. I had no fault in it at all, the bank is apologizing up and down, but I am still now going to have to explain it and go back into Underwriting so they can review it again. Unbelievable!
I would ask the bank to write an apology letter for the NSF and give that to the UW with your next required bank statement. Makes sure that the bank writes in the letter that is was their fault for whatever reason and have them include also that they couldn't reverse or delete the NSF record on your bank statement for whatever reason. Make sure the letter is signed and dated by the bank manager and you should be fine.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13!
@tooleman694 wrote:I would call up the processor and run it by them.
Yeah, I'm like besides myself on what to do, and there is really nothing I can do. I just can't believe it happened...of all the things that could happen, now the bank screws up?
What's crappy is that it brings up the issue of that judgment/bank hold I had going on. Basically what happened was that I had a hold placed on funds in my account due to a judgment and today, the funds were paid to the creditor (which is fine, I expected that) but the bank did not release the hold like they were supposed to! Well my account didn't have enough to cover both the funds paid out AND the amount on hold AND the earnest deposit check. I had budgeted for the funds held + the deposit check (say $2000 held + $1000 deposit check, so I had a total of $3500 in the account to leave a little room for something unaccounted for) but they paid out $2000, also held $2000, which means I would of needed to have $5500 in the bank. 
Some good news on this, I talked to my bank's branch manager who reviewed what happened and he said it was a bank error. He wrote up a letter that explains that the funds were in the account and the returned check was due to a bank error. Definitely settles my nerves. 
