b'Mortgage Industry Information, Opinions & TipsDRE Audits and You:Part 3Trust AccountsemembertheolddayswhenIn an investigation by a DRE Specialthat ever hit the trust account, that the licensees received the DRE RealInvestigator or during an audit conductedaccount is held in a California chartered Estate Bulletin in the mail everyby a DRE Auditor, the following trustbank and that the broker receives no quarter and we quickly opened to theaccount documentation is requested frominterest or benefits from the account.If middle of the publication to read the list ofthe broker for review: the account is an analysis account, that brokers who were suspended, restricted orfact must be disclosed to the investor or revoked?Remember how many of thoseA Certified Copy of the Bankborrower.suspensions, restrictions or revocationsSignature Card for All Trust were caused by trust account violations?Accounts Bank Statements and Monthly Even though we dont get to rush andReconciliation Recordsopen the mail to look, we can now see theThe Department is checking to make sure list on the internet every month or eventhat the account is set up in the name ofThe auditor could ask for up to three (3) receive e-mail notifications of disciplinarythe broker, corporation or dba, that thecomplete years worth of records, but will actions right to our inboxes.And, guessaccount is designated as a Trust Account,generally choose a cut-off date for their what?The majority of those actions arethat the broker is a signer on the accountaudit and will review three (3) months to still due to trust account violations. and is identified as Broker, as Trustee onone years worth of recent records.the account, that any additional signers The DRE has a zero tolerance policy forare licensed to the broker and haveCopies of Cancelled Checks violations of the rules and regulationsa written agreement with the broker(Back and Front)regarding the handling of trust funds.Inspecifically authorizing the ability to sign order to understand the requirements ofon the trust account (separate from theMany banks do not provide originals recordkeeping, it is extremely importantBroker-Licensee Contract/Commissionor copies of checks, but this is a DRE for anyone dealing with the brokersAgreement) OR that any additional non- requirement.Check with your bank to see trust account to thoroughly read andlicensed signers are W-2 employees ofhow far you can go back online (remember, understand Chapter 21 of the Real Estatethe broker, with a written agreementretention period is three (3) years!) or talk Reference Book.This is available online atauthorizing the ability to sign, and thatto your bank about your options.Some the DREs website (www.dre.ca.gov) underthe broker has obtained an acceptableoffer CDs of check copies with the bank PUBLICATIONS. fidelity bond naming such employee(s)statements (for a fee, of course).that is insuring an amount that equals or exceeds the maximum amount of fundscontinued on page 26Points of InterestFall 2020Page 25'