I
Inquiring Minds
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What is the name of your state?What is the name of your state? Multi-state lender
Our firm serves as an outsource for other firms that want to lend, but don't want to do any of the lending functions.
As such, if we open an account from which to receive "gross funds" from ABC Bank to fund the loan and we pay the third parties and provide the "net funds" to the settlement agent..
1. Would it be preferable to establish the deposit account "as trustee" or "as custodian" for the client?
2. Would creating such an account impose us to further obligations, e.g., reporting requriements, etc.?
3. Is there any problem with us retaining a portion of the funds?
4. Is there any other impact to our firm?
ABC Bank is asking that we amend the contract to state that the title of any such account shall include language stating that our firm "holds such account as "custodian" or "trustee" for the benefit of ABC Bank".
...Any ramifications?
Our firm serves as an outsource for other firms that want to lend, but don't want to do any of the lending functions.
As such, if we open an account from which to receive "gross funds" from ABC Bank to fund the loan and we pay the third parties and provide the "net funds" to the settlement agent..
1. Would it be preferable to establish the deposit account "as trustee" or "as custodian" for the client?
2. Would creating such an account impose us to further obligations, e.g., reporting requriements, etc.?
3. Is there any problem with us retaining a portion of the funds?
4. Is there any other impact to our firm?
ABC Bank is asking that we amend the contract to state that the title of any such account shall include language stating that our firm "holds such account as "custodian" or "trustee" for the benefit of ABC Bank".
...Any ramifications?