HUD gift letter requirements

We are trying to buy a house. Lender says that since I will be amending tax returns before closing and there will be a debt to the IRS of 7000, they want it paid in advance through a gift from parents. My stepdad agreed to do this gift, transferred the money from his line of credit into his checking, and the... show more We are trying to buy a house. Lender says that since I will be amending tax returns before closing and there will be a debt to the IRS of 7000, they want it paid in advance through a gift from parents. My stepdad agreed to do this gift, transferred the money from his line of credit into his checking, and the lender is saying that HE has to give me the money from his savings, investments, or home equity. He is willing to give the money, but the way he wants to do it is this line of credit that he's had and used off an on for the last 25 years when he has a large expense. Why does this matter where the money that I am being gifted comes from?
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