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#2064402 - 02/16/16 02:23 PM Overpayment of Loan Payoff
HRH Okie Banker Offline
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Joined: Jan 2003
Posts: 3,070
Oklahoma
We send refunds from overpayments of loan payoffs to the borrower(s) in a cashier's check. Can we, instead, deposit those funds into the borrower's deposit account?
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Lending Compliance
#2064413 - 02/16/16 02:49 PM Re: Overpayment of Loan Payoff HRH Okie Banker
Dan Persfull Online
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
As long as you are depositing the refund to the borrower or borrower's deposit account I do not believe 1026.21 prevents this.

However it is my opinion if the loan is in an individual name then the refund should be deposited to the individual's deposit account and not to a joint deposit account with someone else. Or if the loan is joint then the refund should be deposited to their joint deposit account and not to an individual account. In these cases if there is not an individual account or a joint account then the refund should be made by check to the individual borrower or the joint borrowers.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2064415 - 02/16/16 03:11 PM Re: Overpayment of Loan Payoff HRH Okie Banker
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Thank you Dan. That all makes sense.
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