Posted by NorCalDar on 2/17/06 1:48am
Msg #97883

Per Diem Interest

I've noticed that the wording of the prepaid interest forms have changed for a lot of lenders. They used to have a box to check for the borrower to decide whether they wanted proceeds disbursed out of escrow on a day immediately following a business day or to request that disbursement of funds occur on a Monday or a day immediately following a holiday. Neew format does not have a choice. If I understand the "new" format, if the borrower signs the form, they are agreeing to funds being disbursed on a Monday or a day immediately following a bank holiday, which may mean additional charges. Am I off base?

Also, I’ve asked the question before but never really received an answer. Anyone know why one would want to wait until a Monday or a day immediately following a bank holiday rather than just requesting that funds disburse ASAP?

Reply by Blueink_CA on 2/17/06 2:06pm
Msg #97998

The difference would be the bo's may have to wait an additional day or two for their money if they request proceeds disbursed following a business day. Some just want the money ASAP and don't care about paying additional charges.