If the Manager of a Mortgage Loan Underwriting Department (with approval authority) is also the Manager of the Mortgage Appraisal Department is this considered a conflict of interest & prohibited under 1026.42(d)? I say yes; opinions would be welcome.

The Manager does not directly place appraisal orders, but may at times be involved with the correction of appraisals.
The Manager does not get involved in appraisals for loans the Manager personally underwrites or approves.
The Manager could become involved in an appraisal for a loan underwritten by a member of the manager's underwriting department.
Would it make a difference if the Manager reported directly to a Loan Processing Manager who does not have loan approval authority?