It has become standard operating procedure to verify bank wire information prior to originating a wire to a loan servicer for the first time. Once the bank wire information is validated using a known trusted number, that information is continually relied upon for each subsequent wire transfer submitted to the loan servicer.

The latest technology being offered by a national bank offers the loan servicer a unique feature. For every payoff quote the lender sends out — whether to pay a commercial or residential secured loan — the system dynamically generates a new bank account number. 

As a result, settlement agents can no longer rely on previously validated wire instructions to these loan servicers. Instead, they must call and verify the unique bank account number with each payoff. 

The re-verification process has added to the workload of settlement agents and loan servicers alike. The loan servicers do not have the manpower required to answer every caller that needs to verify bank wire information on every payoff quote they generate. In most cases, the loan servicers refuse to verify the bank wire information unless the borrower is on the call with the settlement agent. Hold times are often more than one hour. 

This has proved frustrating to settlement agents, as well as the borrowers. Most settlement agents are resorting to overnight delivery of checks, in lieu of wire transfers, when they are unable to verbally verify the auto-generated number as a true and valid bank account number. 

Some of the loan servicers are requiring cashier's checks, instead of title company checks. That adds even more complexity since the check needs to be ordered, picked up at the bank and then sent via overnight delivery. 

If settlement agents elect to send a check, instead of sending a wire transfer, the package must be tracked to a successful delivery and the check must be tracked to make sure it clears and ensures the loan was successfully paid for the borrower. 

This information is provided so settlement agents can be aware of and account for the additional time required to verify unique bank account numbers, which are becoming more commonplace in the industry.