05/14/2007
I am updating the bank's signature card sample and I am starting to question myself about ownership and disclosures for fiduciary accounts. For example, we open an escrow account for a realtor with the account titled "John Doe, Escrow Account" and the realtor is the authorized signer. Is this a personal purpose or business purpose and what disclosures do you give them? Are fiduciary accounts personal or business if the funds are held for a individual?
05/23/2005
What should we do when we audit a loan file (state of AZ) and discover that we did not collect enough money to pay the borrower's taxes? Is it permissible for us to send a letter to the borrower requesting a check for the tax money?
04/19/2004
Can a returned deposited item be charged back to an IOLTA account?
04/05/2004
Escrow accounts in our state earn 2% interest. These accounts are set up under the customer's TIN. If we receive a backup withholding order from IRS and the only account the bank has for this customer is an escrow account, is the interest in that account subject to backup withholding? Are we required to notify the customer?
07/07/2003
Our bank currently handles accounts for a mental institution which tracks accounts for its clients. It sort of serves as the custodian. The account is opened using the client's SSN, but he does not have access to the account and is not a signer. There has been a debate as to whether the client should be listed as an owner because we are using his Social. But my feelings are that if he is listed as an owner, he is automatically a signer, therefore having access to the account. Can you clarify the difference between owner and signer for us?
04/07/2003
We have a title company that wants to open an interest bearing "escrow" account for a subcontractor that they are acting as escrow agent pending completion of a government job by a subcontractor. They want to use the subcontractors tax ID number on the account, but the subcontractor will not be a signer. What is the appropriate way to title such an account?
03/10/2003
What can you tell me about a trust account, similar to an IOLTA account, that is used by real estate or property management companies to hold renters' security deposits. The funds in this account cannot be commingled with operating funds and my understanding is that they can be interest bearing. My concerns lie in the account titling and what happens to the interest.
01/20/2003
Our Bank is investigating the possibility of no longer tracking insurance on improved real property under a Blanket Mortgage Security Policy we currently have in place. Provided that the Bank: 1) verifies insurance coverage at closing by obtaining a copy of the Declaration Page (i.e., Evidence of Property Coverage); 2) notifies the mortgagor once a year of the requirement for insurance and; 3) force places coverage for those properties known to be lacking coverage , we feel we do not need to track insurance for improved real property and equipment and inventory residing at the real property location once initial evidence is obtained.My question is by doing this, would we meet all Regulatory Compliance standards as far as flood insurance is concerned? Also, how common is this practice of 'not tracking insurance'?
12/01/2002
The Federal Reserve Board staff has held constant and issued a proposed update to Regulation Z's Official Staff Commentary in time for the holiday mail.
10/07/2002
Can you explain how escrow accounts work in Condo's? What if the customer decides that we pay the taxes and they pay the insurance or vice versa?