We have a LO that is selling his house. The buyer applied for a loan with us. Besides being a conflict of interest (IMO), are there any rules about the Loan Officer being the Loan Officer on this deal?

What other reason do you need?? I think this one of the most serious COIs that I could imagine.

What member of management in their right mind would allow this to happen? And that is a serious question because if members of management allow this type of transaction they have no business being in management regardless of the size of the financial institution.

I would also question the integrity of the loan officer.

I don't think I can make my opinion any clearer.

I can't tell from your question, jlroberts, whether you're asking about something that might be done or something that has already happened. I think you have your answer, either way. It's definitely a non-starter.