Free guide · for lenders
The Lender's Guide to Replacing Escrow.
How private and balance-sheet lenders manage held funds with clearer records, defined release conditions, and visibility.
Managing held funds involves more than receiving and releasing a wire. Lenders need clear release conditions, current records, and a reliable view of each file. Manual handoffs can make that work harder to track.
Read the full guide.
Enter your email and we will unlock it instantly — no spam, just the guide.
The four hidden costs of legacy escrow
1. Funds awaiting release
Funds may remain held until the required conditions are met. Across a portfolio, tracking those conditions and the status of each balance takes time.
2. A third party controls your money
An escrow officer gatekeeps every disbursement. You wait on someone else’s timeline, with no direct line to your own funds.
3. Compliance checked by hand, after the fact
State fund-control rules vary across all 50 states. Manual, after-the-fact checks are slow and leave room for costly mistakes.
4. No real-time visibility
You wait on statements to know where things stand — and so do your auditors and partners.
What bank-custodied clearing changes
A clearing platform organizes the records and controls around held funds. Funds are custodied at a bank by a neutral third party, with release conditions, reconciliation, and transaction visibility.
How the PHOCIS model works
- Funds custodied at Wells Fargo by a neutral third party — segregated, never commingled.
- Every transaction gated through a 50-state compliance engine before it can move.
- Reconciled daily, with a complete, exportable, audit-ready trail.
- Your team keeps full 24/7 access to distribute — no escrow-officer bottleneck.
- Held balances remain associated with their file and release conditions.
Your evaluation checklist
Whatever you choose, hold it to this standard:
- Bank-grade custody at a named, federally-insured bank
- A genuine third party holds the funds — and you keep 24/7 access
- 50-state compliance built into every transaction
- Daily reconciliation and an exportable audit trail
- 24/7 access with no third-party gatekeeper
- Clear records of held balances and release conditions
- Transparent pricing — no hidden fees
The bottom line
Evaluating a clearing relationship starts with operational needs: how funds are held, who approves a release, and which records are available. Review the account terms and controls with your team before proceeding.