Posted By: bluna
Wiring loan proceeds - 06/08/06 02:58 PM
When wiring loan proceeds for the customer. Who will be the orginator the customer or the bank?
Posted By: rlcarey
Re: Wiring loan proceeds - 06/08/06 11:20 PM
The customer, it is not the bank's funds.
Posted By: mck401
Re: Wiring loan proceeds - 06/14/06 05:20 PM
We (the bank) would orginate IF we disbursed directly from the funding. Otherwise, having a trail of funding to the customer- then the customer would be the orginator.
Posted By: AKauditor
Re: Wiring loan proceeds - 06/14/06 05:51 PM
If the wire was the offset to the loan, then the bank originated it. If it passed through the customers deposit account, then they originated it.
Posted By: rlcarey
Re: Wiring loan proceeds - 06/15/06 11:49 AM
I guess I have to disagree. The money is the customer's whether it is loan proceeds or comes from a deposit account or they walkin with cash. Whether the loan customer chooses to accept cash, or a check, or have you wire the loan proceeds someplace is all done on the order of the customers. Why would you believe that the bank is the orginator of the wire just because it involves loan proceeds? The only tranactions in which the bank is an originator (in my mind anyway) are bank transactions, such as settlement wires.
Posted By: Passing storm
Re: Wiring loan proceeds - 06/19/06 05:33 PM
In my mind, the bank is originating the wire to it's attorney's IOLTA account.
Posted By: Passing storm
Re: Wiring loan proceeds - 06/19/06 07:54 PM
Sorry, If we are closing a mortgage, we would wire the funds to the attorney who would then distribute the funds to the customer, so in my mind the bank is originating a wire to it's attorney.
Where this gets tricky (and can mess up BSA reporting) is whether the bank is delivering the loan proceeds TO the customer or wiring ON BEHALF OF the loan customer. For loan proceeds, I prefer to see the money deposited into the customers account and then wired out to the third party, rather than wiring directly from loans in process, for example, with the bank as originator. In some cases, the bank may be wiring the proceeds to the customer at another institution. In that case, I view the bank as the originator.
I view the customer as originator if the bank is sending funds at the customer's direction. I like sending that from the customer's account so that there is a clear picture of payments by that customer, should any question ever arise whether for BSA or other reasons.