Mortgage loan officer cannot do his own loan for a property that he is going to buy?

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Someone just told me that a mortgage loan officer cannot do his/her own loan for a property that he/she is going to buy. The reason is that the agent might exagerate information to qualify for the loan (Conflict of interest). Is this true?? In other word, this mortgage loan officer has to hire someone else to process this loan

Mortgage loan officer cannot do his own loan for a property that he is going to buy?

Not true here in So. Cal. I acted as Realtor and loan officer for my own properties. The only thing we have to do is disclose to all parties involved that we are Realtors and/or are acting as the loan representative. We do it all the time and it saves on fees. I have actually applied my commission as a reduction in price and/or to pay for costs....

Mortgage loan officer cannot do his own loan for a property that he is going to buy?

It is true....conflict of interest! And...a RESPA violation. Last thing you want is to raise red flags with your future lender! You've gotta know someone in the biz you trust to write the 1003 in their name? If I know loan officers there's one just waiting for your business! ;)

Mortgage loan officer cannot do his own loan for a property that he is going to buy?

The loan officer, first of all isn't an officer. That is just a title. They are a go between and the lending institution. It is the institution that sets the policy of do's and don'ts. A loan application is made up of several documents. One of these is a mortgage appraisal. This is done by an outside source to determine a homes value. The for sale unit is compared to other homes that have recently sold. The appraisal information including the comparison is passed to an underwriter. It is the underwriters responsibility to look at the entire loan package and make sure that all documents have been put together, appraisal, survey, title search, insurance, tax information, income verification and whatever else is required by the lending institution and make a recommendation for approval or disapproval.

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Mortgage loan officer cannot do his own loan for a property that he is going to buy?

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