My bank does not currently have a separate account number for loan checks. They use cashier's checks for all loan purposes (proceeds, escrow payment, taxes, refunds, etc) and loan staff just ask the deposit staff to prepare it for them. The loan and deposit departments recently began discussing removing deposit involvement from preparation of loan checks and just wants to give certain loan operations staff the ability to create cashiers checks.

While I am supportive of the separation of the function, I think it is necessary to have separate account numbers as well rather than just giving more people access. My logic: Loan checks would be necessary at all branches, so we couldn't just limit it to loan operations, which is centralized. And not THAT many loan staff should have access to cashiers checks. In fact no loan staff should be preparing cashier's checks - just seems like unnecessary risk.

Can I get some comments as to why others use cashiers checks or have separate accounts? I want to be able to better articulate my thoughts and hear a few other's opinions before I meet with them....

Apparently I failed to log out - oh well - I guess it's not anonymous.

We began using a separate account several years ago. We call it the "Loan Disbursement" account. The lenders and their assistants sign on these accounts up to their lending limits. This separate account has become valuable in determining the delay in disbursing funds and booking of the loan. It is definitely a red flag when the account is overdrawn.... From an audit standpoint I like the separation.

I like the separation also, but you don't give the chickens directly to the foxes either. LOs and loan assistants should not have access to issue checks directly on any loan that they touch.

we have a separate loan disbursement account, but the people who write the checks, wire the funds, or place into the customer's account are back office, for the very reason Randy mentioned above. There is a distinct process for authorization that must be followed for each loan disbursement. No individual can perform this task on their own, minimum of 2 involved. and the reconcilement of these accounts are handled in another area.