Mortgage lenders might request a letter of explanation for various red flags that come up in underwriting. Learn how to write one, and download a template.Provide a clear explanation: Your letter should acknowledge and indicate why something happened. Use this sample letter to dispute incorrect or inaccurate information that a business supplied to credit bureaus. A letter of explanation is a brief document you can use to explain something, like a previous bankruptcy, in your financial or employment history. Irrevocable Letters of Credit will be accepted as surety for projects. This Letter of Credit expires at p.m. Types of payment arrangements are listed below. Investors are not required to fill out an FS Form 1199A. The letter format itself lets the recipient know that he or she is being approached in a respectful manner, not as a matter of course.