When may a mortgage broker transfer excess funds from a borrower subaccount?
(a) A mortgage broker may, in the case of a closed and funded transaction, transfer excess funds remaining in the individual borrower’s subaccount into the mortgage broker’s general business bank account in full or partial payment of fees owed to the mortgage broker upon determination that all third-party providers’ expenses have been accurately reported in the loan closing documents and have been paid in full, and that the borrower has received credit in the loan closing documents for all funds deposited in the trust account. (b) Each mortgage broker must maintain a detailed audit trail for any disbursements from the borrower’s subaccount(s) into the mortgage broker’s general business bank account, including documentation in the form of a final HUD-1 Settlement Statement form showing that credit has been received by the borrower in the closing and funding of the transaction. The disbursements must be made by a check drawn or electronic transmission on the trust account and deposited d
