Under what circumstances must licensees maintain a trust account for funds relating to mortgage banking activities?
The law states that licensees must deposit in one or more trust accounts all funds (other than non-refundable fees) which they receive on behalf of any person, pending disbursement of the funds in accordance with instructions from the person on whose behalf the funds are deposited. The trust account may be maintained in a bank, savings bank, savings and loan, or credit union that is authorized to do business in Wisconsin or is federally chartered. Chapter DFI-Bkg 42, Wis. Admin. Code, contains other requirements pertaining to types of accounts, time of deposits, commingling funds, and disbursement of trust funds.
Related Questions
- Will I be required to maintain a trust account to process funds through to pay third parties (referrers) and credit representatives or receive commissions from lenders on my aggregators Lending Panel?
- Does a broker always have to place non-client funds from property management and leasing activities in a trust account?
- Under what circumstances must licensees maintain a trust account for funds relating to mortgage banking activities?
