Segragation of Duties

Posted By: one auditor

Segragation of Duties - 11/10/05 04:24 PM

Can anyone tell me what would be the proper segregation of duties to have in place for the loan payoff process in a mortgage loan department. This process would involve providing the correct payoff amount, posting the payment when received, and preparing the release deed for recording.

Thank you.
Posted By: flaire

Re: Segragation of Duties - 11/11/05 08:41 AM

There is no "right way," as far as I know. Tne question is do the people involved know what they are doing? Do they know how to quote a payoff? Do they know escrows? Do they know how to process a payoff? Do they know how to release a mortgage?

Best practices, IMHO, would be that the person processing the payoff not be the one preparing the release of mortgage. Beyond that is totally up to management's option.