Can a Realtor Be the Loan Officer in Same Transaction?
This Article On Can Real Estate Agents Be Loan Officers At The Same Time
Can Real Estate Agents Be Loan Officers At The Same Time?
The answer is YES. Licensed real estate agents can be licensed mortgage loan originators at the same time. However, many mortgage companies will not hire loan officers with active real estate licenses. This is not a law and/or a regulation but an internal rule by individual mortgage lenders. Most larger mortgage companies will require licensed real estate agents to put their real estate license in hibernation. However, there are mortgage companies like Capital Lending Network, Inc. that actively recruit licensed real estate agents who have licensed loan officers at the same time.
The only caveat is if you are a licensed realtor and have a client, you cannot represent your real estate client as their loan officer on the same transaction. However, you can be your client’s home purchase real estate agent and refer the loan origination to one of our licensed loan officers at Capital Lending Network, Inc. and get a flat referral fee for referring your homebuyer. This is legal to get a flat referral fee for the loan origination because you are a licensed loan officer and so is the referring loan officer with the same mortgage company. You can originate any type of loan on homebuyers referred to you by other real estate agents.
Can Real Estate Agents Be Loan Officers At The Same Time: What Are The Rules And Guidelines
The actual rules in real estate agents becoming loan officers at the same time. You cannot be a real estate agent and loan officer on the same client on FHA loans only. However, most lenders will not allow real estate agents to be representing clients on both the realtor and loan origination at the same time. The reason behind this rule is that most investors on the secondary mortgage market will not purchase loans that were originated by a loan officer who represented the borrower and was the real estate agent for the same client at the same time. You would need to decide whether you want to be the loan officer or the realtor for the client. You cannot represent both realtor and loan officer at the same time for a client.
Licensed Real Estate Cannot Be Loan Officers For A Client At The Same Time
Real estate agents are licensed professionals. They need to be licensed in each state they plan on practicing representing home buyers and sellers. They have a strict code of ethics as licensed professional real estate agents. Therefore, real estate agents should not benefit financially from any other business transaction other than their real estate sales commission when dealing with a client. Most view it as unethical for a real estate agent to benefit from the real estate and loan origination transaction from the same client. A real estate agent who is a loan officer should refer their realtor-client to a different loan officer within the mortgage company the realtor is employed at. The real estate agent can get a flat fee for referring a homebuyer to a fellow loan officer within the same company.
Can Real Estate Agents Be Loan Officers At The Same Time: Finding Employment
Many real estate agents who got licensed as loan officers often get disappointed because they have a difficult time to get employment by a mortgage company. Most mortgage companies require licensed real estate agents can only become loan officers in their company only if they forfeit their real estate license. These mortgage companies require the loan officer put their real estate license in hibernation in order for them to be employed as licensed loan officers at their mortgage company. However, there are other mortgage companies like Capital Lending Network, Inc. who welcome real estate agents who are licensed loan officers. You do not have to put your real estate agent’s license in hibernation to work at Capital Lending Network, Inc. as a licensed loan officer.
Becoming A Licensed Realtor And NMLS Licensed Loan Officer At The Same Time In California
Dora Ali, an NMLS licensed Loan Officer at Capital Lending Network, Inc. is a real estate agent and loan officer at the same time.
Dora Ali said the following:
In California, a real estate agent or broker holds a license issued by the California Department of Real Estate. Minimum licensing requirements require an applicant to be at least 18 years old, complete three college-level courses in real estate principles, real estate practice and an elective course such as real estate appraisal, escrow, finance or property management, pass a written exam, and be fingerprinted. Once licensed, a real estate salesperson or broker must take continuing education courses to renew the license once every four years.
In California, there are two separate approaches in becoming a real estate agent and loan officer at the same time.
California Department Of Real Estate Versus California Department Of Corporations
In California, there are two separate approaches in becoming a licensed loan officer. One of the most active states for Mortgage Brokers, there are two separate approaches to becoming a Mortgage Broker, each with its own rules and responsibilities. The first approach is getting your loan officer’s NMLS license under the California Department of Corporations, which is based on the California Finance Lenders Law (CFL). The second approach in getting your NMLS loan originator license is under The California Department of Real Estate (DRE). If you have a California real estate salesperson license and get your NMLS license, you can be employed as a licensed real estate agent and licensed loan officer at DRE real estate office as both a licensed real estate agent and loan officer.
The bottom line is you need to be a licensed real estate salesperson in California and have an NMLS loan originator license at the same time to work under the sponsorship of a DRE Real Estate Office. To be able to open your own DRE Realtor and Mortgage Broker Office in California, you need to have a California Real Estate Broker’s license. California licensed real estate brokers are eligible to open a mortgage broker office in California and have both their licenses under the DRE Real Estate Office.
Licensed Real Estate Agents Interested In Joining Our Growing Team At Capital Lending Network, Inc. As A Licensed Loan Officer
We have many loan officers who are licensed real estate agents at Capital Lending Network, Inc. and they all are doing great. Many dual realtor/loan officers at Capital Lending Network, Inc. have both realtor and loan officer partners where they refer each other to homebuyers and/or borrowers. If you are a licensed real estate agent and are looking for a mortgage company that will welcome you to become a licensed loan officer as well as a licensed realtor at the same time, please contact us at Capital Lending Network, Inc. and fill-up the form below.