fast offering check for mortgage- payee has mtg auto-pay

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fast offering check for mortgage- payee has mtg auto-pay

Postby briankorale » Wed Apr 04, 2012 7:21 pm

We want to pay a member's mortgage payment for the month, but they have auto-draft of their checking account from their mortgage. Can we just pay the member the money directly, so they can put it in their checking account to be ready for the auto-draft? Or is that a no-no. Do we need a back-up document like an online statement/bill from his mortgage account?

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Postby jdlessley » Wed Apr 04, 2012 11:38 pm

Fast offering assistance is not normally paid to the fast offering recipient. It is usually easier for everyone involved to find other accounts that can be paid instead of the mortgage. But if the mortgage is the only way to provide assistance then the mortgage company should be contacted to see if they will accept the check payment in lieu of the automatic bank draft. Some will if contacted far enough in advance.

Any payments to the fast offering recipient will raise a flag to an auditor. He will look to see that funds given directly to the fast offering recipient include receipts to show how the fast offering recipient spent the funds. This would mean in this situation that there is a record trail from the check written to the fast offering recipient all the way to their mortgage company. Generally a bank statement showing the deposit as well as the auto draft is sufficient for this trail of evidence. Do not use the bank statement to replace the requirement for a receipt, bill, or invoice. If the mortgage company provides an online invoice for each monthly payment then a printout of this invoice should be included with the expense disbursement form along with the bank statement. Be sure to block out any information on the bank statement that is not necessary for the purposes of proving the pass-through of the funds. (privacy of the fast offering recipient)
JD Lessley
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