Answer:
Answer by Dan Persfull:Without the borrower's authorization how do you know the closing attorney has a legitimate reason to be requesting the information? You could accept a verbal authorization, however a written authorization would leave no doubt if a problem should occur.
Answer:
Answer by Kathleen Blanchard:For commercial loans, it is common to know ahead of time when a customer will be paying off. If a payoff request comes in unexpectedly, many banks contact the customer by phone to confirm and to find out why the customer is paying off and what if anything can be done to retain the loan. The bank often also wants to know about timing so that it can incorporate the payoff in its projections of loan outstandings. For a problem loan, the bank will usually contact the customer to determine how realistic the prospect of being paid off is.
First published on BankersOnline.com 2/04/08
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