Could anyone help answer a question I've been asked by an acquisition team member: in cases of acquisition, should the loan system be coded to indicate loan was originated by another lender? I see a special comment code in some Metro material I had, but I believe that would just be for E-Oscar, and not loan system.

Can anyone assist?

Thanks in advance.

Anyone?

Approximately one year ago our financial institution purchased another financial institution. All loans that were acquired were coded in a miscellaneous field as an "XYZ Bank Acquired Note." This coding has been extremely beneficial for various departments in identifying system coding issues and documenting audit findings.

Thanks VeeJay, I appreciate your response.

I can see that such a notation would be advantageous in looking at patterns and helping detect problems as they arise.

I would reccommend that you code your loan system to indicate the investor that loan was purchased from. That coding becomes very beneficial should you need to 'putback' the loan to the originating company.

Depending on the volume of secondary loans your company is purchasing the coding also comes in handy with tracking patterns of idenity theft and broker fraud.

There are a myriad of different reasons to add the coding identifier - all I can say is you should.

Thanks All!