We currently have our 1st mortgages being processed in our mortgage center. The majority of these loan are sold to FNMA.
Our 2nd are being processed in our branches and are kept portfolio.
We would like to combine the processing departments into one department and train the processors to be able to process both types of loans.

A question has been raised on whether it would be a conflict of interest to have processors able to process both types of loans and work in the same department. For some reason, someone here seems to remember this is how we used to run the department 10 years ago or so but we broke them out due to a conflict of interest. Thoughts???

I can't think of any conflicts.

This is a common set up. No conflicts apparent.

I wish we would do this too river girl. The issue that we have here is not conflict of interest but conflicting operating systems. For a reason that no one knows, 2nd are processed through one system and 1sts through another one. We see different forms and the inconsistency is the reason for many errors that I find in my audits. I am pushing toward this direction for the obvious efficiencies. I too would be interested in any thoughts.

We made this change. The only docs we didn't move onto our mtg system are the HELOCs. We set up a process by which the mtg lenders can order the docs from the consumer lending area.

So many things are working better with the 2nds coming from the residential dept. The only thing that caught me off guard in this year's audit is that our seconds showed prepaid interest!