Thread Options
#2256137 - 06/29/21 08:29 PM Beneficial Ownership on Loans
Craney Offline
New Poster
Joined: Jun 2020
Posts: 20
So I've got a unique situation that my loan department sent to me. The way I am understanding it is we are purchasing loans on the secondary market from a financial services firm that originates the commercial loans. They are asking me if we need to get beneficial ownership on these commercial loans. They received a "document" from this firm that basically states that the firm does not need to get beneficial ownership for these loans because they are not technically classified as a "covered institution".

My thoughts are that once we purchase the loans and set up accounts for them, they become our customer and are subject to the CIP regulations to include Beneficial Ownership. Am I correct in my assessment?

Return to Top
#2256139 - 06/29/21 08:46 PM Re: Beneficial Ownership on Loans Craney
rlcarey Online
10K Club
Joined: Jul 2001
Posts: 79,254
Galveston, TX
1020.100 (a) (2) Account does not include:

(ii) An account that the bank acquires through an acquisition, merger, purchase of assets, or assumption of liabilities; or
The opinions expressed here should not be construed to be those of my employer:

Return to Top

Moderator:  Andy_Z