There are many issues that pop up during the underwriting process. These include improper information, omissions of critical details, income discrepancies, and tax document discrepancies. Other problems include employment issues, credit history issues, and funding issues. Home appraisals can also be a point of contention as different organizations may come up with different values. Finally, unexpected issues might arise in the form of complex asset arrangements and other grey areas. In these cases, underwriters may need to rely on their past experience and expertise to assess the risk and protect the lender from undue risk. In such cases, Letters of Explanation come in useful as underwriters can use them to understand your personal situation better and make a more informed application decision.