FHA - Gift Letter - Source of Funds?

My brother was qualified for an FHA loan, and he is about to close next week, but today I received an e-mail from the lender that they need to verify the source of funds from a $4,500 deposit that was made into my brothers account. The money was a gift from my parents from when they received their tax refund. My... show more My brother was qualified for an FHA loan, and he is about to close next week, but today I received an e-mail from the lender that they need to verify the source of funds from a $4,500 deposit that was made into my brothers account.
The money was a gift from my parents from when they received their tax refund. My parents cashed the check in their bank, and then my brother made the deposit in his bank.
A 'Gift Letter' has been signed, and I have not heard from the lender..
He was supposed to close by the 22nd of this month (seller's request), but had to push it until the 6th of July

Will not having a paper trail of the money affect the loan? Why did they wait until he is about to close to ask for this.. I have explained the situation to the lender and have not heard from him yet.
Any Thoughts?
Update: The check was never deposited, It was just cashed, given to my brother, and then deposited to his account.
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