OFAC & mortgage broker loans - Mary Beth Guard

OFAC & mortgage broker loans
by Mary Beth Guard

Question: What are we required to do, as far as OFAC is concerned, if we buy RE loans from a mortgage broker?

Answer: From an official Q&A on the OFAC Web site: ?Does my bank need to check the OFAC list when selling cashier's checks and money orders? In the case of cashier's checks, do I need to check both the purchaser and the payee? As a mortgage lender, do I need to check both the purchaser and the seller's name against the SDN list?"

?Every transaction that a U.S. financial institution engages in is subject to OFAC regulations. If a bank knows or has reason to know that a target is party to a transaction, the bank's processing of the transaction would be unlawful.?

You should scan these purchases in advance rather than rely on the seller to have done so. You do not want to purchase an asset that then has to be blocked when payments are received.

First published on BankersOnline.com 6/14/04