Hello,
I am curious if anyone allows their mortgage loan originators to work on family member loans? Currently our loan originators are not allowed to work on family member loans. We do have several layers of review in place for mortgage loans so there has been discussion that the risk is limited if originators work on family member loans. Currently, our loan originators gather all documentation necessary for the loan. That information gets sent to loan processing whom ensures all required documentation has been obtained. Then the file is sent to our underwriting department to see if everything is accurate and decide whether or not to approve the loan. I agree that segregation of duties reduces the risk, however I believe there would still be heightened risks if allowing originators to work on family member loans (falsifying documents to increase likelihood of loan approval, fraudulent loans- originators have all the information for a family member and they are able to originate the loan without the family member knowing, etc.). Does your Credit Union allow mortgage loan originators to work on family member loans?
Thanks!
Karen
