To help DRE MLO’s to stay on the straight and narrow path to success, the DRE has prepared a manual that should be used by all MLO’s. This includes Brokers, MLO’s, and all the staff in a company.
Trust Funds
One of the most important sections is use of a Trust Fund. Trust Fund problems are the number one reason for unfavorable audits. Major violations involve shortages, no verification for signees, lack of bonds for non-licensed signers, no reconciliations, and no secondary reconciliation checking the total in the account to each client’s portion. 16 must read pages. Check it at Broker Compliance Evaluation Manual.
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