This one is called the “Good Funds Bill” and has requirements regarding closing and disbursement of funds. In this act any funds coming from a single source, normally the new lender that exceeds $50,000 must be in the form of a wire transfer “Irrevocably credited” to the escrow account of the title company. All lenders in a transaction, purchase and sale or re-finance, must wire funds to the closing agent if they are lending in excess of $50,000.
Funds from a single source, normally the borrowers funds, if less than $50,000 must be in the form of a cashiers check, certified funds, bank money orders, official bank checks, or tellers checks, unconditionally held by the Title company responsible for the disbursement at the closing. If in excess of $50,000, funds must in the form of a wire transfer.
This act also defines “Good Funds” as Checks from an lawyers trust account, or real estate brokers trust account, provided that the title company has “reasonable and prudent grounds to believe that sufficient funds are available for withdrawal in the account from which the check is drawn at the time of closing”. The act also allows for acceptance of another title company’s check, drawn from their escrow account, under the same “reasonable and prudent” provisions as noted above.
Why the change you may ask? Many title companies, as well as
buyers have had some major issues recently with lenders, small and large,
that have filed bankruptcy, or just plain gone away. If a title company had
disbursed on any of there funds, assuming that they were good funds at the
time when in reality they were not, they would have disbursed at the closing
and be responsible for the funds. The money in our escrow account belongs to
those trusting us to care for it and disburse it according to instructions,
if we disburse on funds that are not “Good Funds” then we have not followed
our responsibility and are in a position of risk.
Be the first in your office to try out SureClose.com, Benchmark Title's new FREE online transaction management system. Why waste time making status phone calls or standing by the fax waiting for your title commitment when you can get what you need instantly from your own computer. Visit SureClose.com for more information or call April Tolan, our SureClose Specialist, at 618-239-3750 for your sign-on so you can start saving yourself time and money today. We'll even give you and your clients a free CD at closing containing copies of their closing documents.
Give me my policy!
Did you know that lenders and home buyers now receive their title policies at the closing table? Contact Michelle Null, VP Escrow Operations, to learn more about this exciting new program.
Ready to refi?
Lenders and homeowners will want to hear about our fantastically low new refinance rates. Contact us today for a quote!
You can place your next title order now by clicking here.
We send special notices and tips to customers who have given