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#1498187 - 01/20/11 10:58 PM MLO underwriting loan
Baker Offline
Platinum Poster
Joined: Nov 2005
Posts: 773
Washington State
We had another bank give us the following information:

"A person who originates (and is compensated to do so) a mortgage loan cannot be involved in the underwriting or lending decision. By allowing an originator a lending limit, it would be within their authority to make the lending decision (or could be interpreted as such). Duties may be different at your institution but as a general rule I know this is one of the examiners primary concerns of keeping lending authority and origination separate."

Has anyone else heard of this? We are OCC regulated and have not heard of this. Where would it be located?

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Human Resources
#1498312 - 01/21/11 02:41 PM Re: MLO underwriting loan Baker
Cats Offline
100 Club
Cats
Joined: Jan 2010
Posts: 192
Florida
Can you give the citation? That is, what is the source and context of this? Is it an internal item specific to one particular bank or something from an actual reg or reg commentary?
_________________________
"There should be a critical duration time after which it is perfectly acceptable to bite someone like a raptor." D. Shepherd

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#1498470 - 01/21/11 04:35 PM Re: MLO underwriting loan Cats
Baker Offline
Platinum Poster
Joined: Nov 2005
Posts: 773
Washington State
That was what we were wondering. We asked the bank for a reference and all they did was restate the above paragraph. HR asked again and he said he had to get it from his compliance department.

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