Should a loan officer do a loan for a family member. Is there anything in the law regarding that or is it just monitored by internal bank controls. Thanks

It's in our ethics policy that we will not handle accounts for family members and I think it makes good business sense. It could get uncomfortable - especially if the loan goes past due or worse.

Well we have a loan officer who just did a loan for her sister. I swear she took the papers home with her for her sister to sign because I did not see her sister in the bank signing any papers. Also this person has done loans in the past for her mother and we swear these loans were not for her mother but to cover this persons debt. Of course you cant prove anything and the loans havent gone bad.

TB - one of two things.

1. Either you spend to much time worrying about other people's performance and what they are or are not doing (as also witnessed by your recent description of your branch manager)

or

2. You are on a sinking ship, but management doesn't know it yet. Get off of it now!

I don't really understand your answer. Are you saying the original poster should ignore this? I would be most concerned. (1)Loan Officers should not approve/process loans for family members. (2) In a past life, my bank had a finance company. Nearly the exact same scenario was going on. Come to find out - the loan officer was making fraulent loans to cover her own debt.

OTE - I was combining what TB said here and what they said in this post about the branch manager.

My point was TB either has their nose in the worng place or that management at the institution is asleep at the wheel and they should look for other employment before something really bad happens.