Contents
Overview
Sources
Wet or Dry Settlement
Wet
Definition
"Qualified loan funds" means any of the following: 1. Wire transfer. 2. Cashier's check or teller's check. 3. A check that is negotiable and on which the lender or an affiliate of the lender is the drawee. 4. Transfer of the loan funds by the lender into an account maintained by the lender or an affiliate of the lender in favor of the settlement agent or borrower. WI Stat. 708.10(1)(e).
Requirements
If a settlement agent is to deliver qualified loan funds to the borrower in a transaction, or to a 3rd party on behalf of the borrower, a lender may not permit or require a borrower to complete a loan settlement unless the lender unconditionally delivers qualified loan funds to the settlement agent before or immediately on completion of the loan settlement. However, if the lender and the borrower have agreed that less than all of the loan funds are to be disbursed at the loan settlement, the lender shall deliver qualified loan funds to the settlement agent only in the amount to be disbursed at the loan settlement. WI Stat. 708.10(2).
Exceptions to Requirements
N/A
