This would be a state specific issue.
As an example, (courtesy of Autumn)
An LPO is not a branch of the bank and cannot, therefore, issue proceeds. The Kentucky DFI told me that a cashier's check issued at closing would be acceptable as long as it wasn't prepared at the LPO.
You should be able to find other discussions by doing a search on LPO or Loan Production Offices.
The opinions expressed are mine and they are not to be taken as legal advice.