Employees of federal credit unions have a conflict of interest if they disapprove a loan to a member and then refer the member to a mortgage banker that compensates that employee.
That's the opinion of NCUA Associate General Counsel Hattie Ulan in a letter to Trenton,, N.J. Police FCU CEO Barbara Rios.
Ulan wrote that loan officers must "decide whether to grant or deny loan applications absent economic incentives that could influence decisions against the best interests of members and the FCU.''
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