Trust Account Requirements Flashcards
These funds cannot be commingled with a licensees of funds :
Shall be placed in a non-interest-bearing account (unless otherwise specified below) and used only for the following:
Payments authorized by the borrower
Transferred to another institution if appropriate
Forwarded to the appropriate Servicer (in the case of a transfer or servicing)
Escrow funds for a purpose authorized by the residential mortgage loan contract are subject to all state and federal requirements including federal regulation X (RESPA).
These funds cannot be commingled with a licensees of funds.
A licensee may at the request of the ballroom transfer funds initially deposited and a non-interest-bearing accounts to an interest-bearing account if all of the following are met:
The account is in the name of the lender in trust for the specified borrower
Account is federally insured
The funds are not commingled with the funds of any other person (including the licensee)
The licensee discloses to the borrower how interest will be calculated and paid
All interest earned on the account is paid to the owner of the trust funds
