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#1889071 - 01/22/14 06:14 PM Home Equity Funding
bkdallas Offline
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Joined: Oct 2005
Posts: 134
I just started at a new bank and I have a question regarding Home Equity Funding, the old compliance guy told the Mortgage Department that if the customer has a loan with them and is using the cash out to pay off that loan that the mortgage department is not allowed to do the transaction themselves, they must tell the customer that they have to go do it at the teller line. Is this right?

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#1889078 - 01/22/14 06:22 PM Re: Home Equity Funding bkdallas
Doug Hendrickson Offline
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Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
It may be right for your bank. In the past, if someone were going to pay off a loan here, they would go to the 'loan clerk'; we have transferred that function to the tellers. They should be able to pull up the loan, determine the payoff amount, and collect the payoff from the customer for posting. The teller will only call a loan officer if they have any problems determining the payoff amount.
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I hear and I forget. I see and I remember. I do and I understand.--Confucius

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#1889099 - 01/22/14 07:01 PM Re: Home Equity Funding bkdallas
hgliii Offline
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Joined: Mar 2012
Posts: 574
Bkdallas,
If you are in TX, it is a whole different world on refinancing of Real Estate. rlcarey or someone from TX would be better to answer that question.

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#1889105 - 01/22/14 07:07 PM Re: Home Equity Funding bkdallas
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
You can't condition the payoff of any other credit on the granting of a HELOC in Texas. It is probably a procedure to show that it was purely voluntary.
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#1889107 - 01/22/14 07:11 PM Re: Home Equity Funding rlcarey
Al Miller Offline
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Al Miller
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
You used the word "cash". If you mean cash as in CTR, I agree. The loan department should not accept cash in any amount.

Al
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Al Miller, CRCM
Opinions expressed are my own and not necessarily shared by my employer.

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#1889113 - 01/22/14 07:22 PM Re: Home Equity Funding bkdallas
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,351
At my former bank, if the borrower DESIRED to pay off other debt that was NOT secured by the homestead property, we had the borrower sign a statement of that desire. The statement declared that the bank was not requiring the pay offs as a condition. However, we STILL paid the cash equity straight to the borrower OR if the borrower wanted to get it all done on the spot, we put the money in the borrower's account and then helped the borrower purchase bank checks (cashier's checks) for the pay offs.
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