One of the most frequently asked questions from real estate agents is can realtors be loan officers at the same time? Many lenders tell many high-producing real estate agents NO they speak with. However, with recent guidelines changes, real estate agents can be loan officers at the same time and get paid on both sides of the transactions, says Ronda Butts, a dually licensed realtor and loan officer at Gustan Cho Associates.
The only way many lenders will hire a dually licensed loan officer and real estate agent is for the loan officer to put their real estate license in hibernation. That
Until recently, real estate agents who were dually licensed could not do FHA loans. However, as of February 2023, dually licensed real estate agents and loan officers can do FHA loans. It seems common sense for being a real estate agent and a mortgage loan originator to go hand in hand. In the following paragraphs, we will cover and discuss whether can realtors be loan officers at the same time.
Realtors Can Get Compensated on Both Sides of The Purchase Transaction
Gustan Cho Associates has the Business Development Manager (BDM) Preferred Realtor Partner Network Program, where licensed real estate agents can be dually licensed loan officers on the same transaction. You can be the loan officer of record, working the loan from beginning to end, or have a reduced role as a loan officer assistant helping to manage the discussion with the client. Your level of engagement is entirely up to you. Call us, and we will explain how our BDM realtor/loan officer partner program works.
Career Opportunity For Real Estate Agents To Be Loan Officers
Many realtors know a lot about mortgage loans. Most licensed loan originators count on real estate agents to send them business.
Why not become a real estate agent and loan officer at the same time and get paid on both sides of the transaction? Most realtors have a list of lenders in a specific niche area.
For example, some loan officers may be good at helping borrowers with low credit scores. Other lenders may be good at bank statement loans for self-employed borrowers. Gustan Cho Associates, Inc. are mortgage brokers licensed in 48 states with over 190 wholesale lenders.
Why Can Realtors Be Loans Officers at Some Lenders and Not Other Lenders?
You cannot hold a realtor’s license and be a loan officer at some mortgage companies. It is up to the individual mortgage company to decide whether or not they want to hire a loan officer who is a practicing realtor. In the following paragraphs, we will cover and discuss the topic of whether realtors can be loan officers at the same time. We will cover and discuss why Gustan Cho Associates differs from other lenders. The answer to why Gustan Cho Associates can do loans other lenders cannot do will be answered. We will also discuss career opportunities for real estate agents to be realtors and loan officers at the same time at Gustan Cho, Associates, Inc.
Do Homebuyers Prefer A Dually Licensed Realtor and Loan Officer?
Most homebuyers prefer hiring one professional to handle their home purchase and loan origination for the same transaction. Homebuyers have a lot of faith and trust in their realtor. Most homebuyers take the advice of their realtor on which loan officer to use. Why not use a realtor who is a dually licensed loan officer? Many licensed real estate agents know a lot about mortgage lending. Why can’t realtors make money on the same transaction?
Should I Be A Real Estate Agent and a Loan Officer at The Same Time?
Many real estate agents ask lenders if can realtors are loan officers at the same time. Why refer the homebuyer to another loan officer when the real estate agent can do the loan himself if he just had an NMLS mortgage loan originator license?
The dually licensed realtor/loan officer can make money from both sides of the transaction by being the realtor and loan officer.
We will discuss the actual agency mortgage guidelines per the Consumer Financial Protection Bureau on whether can realtors be loan officers at the same time. Realtors get conflicting answers when asked if can realtors are loan officers at the same time. The short answer to the question, can realtors be loan officers at the same time, is YES.
Can I Get a Job As A Licensed Loan Officer If I Am a Licensed Realtor?
To many, including the public and investors, it makes all the same sense in the world to be a real estate agent and loan officer at the same time.
Most mortgage companies will not hire dually licensed realtors with an NMLS mortgage loan originator license.
It just does not make sense why most lenders will require the loan officer with a real estate license to put their real estate license in hibernation if they want to be employed. Being a real estate agent and a loan officer can go hand in hand. Many home buyers and sellers like the idea of their real estate agents also being their licensed mortgage loan originators on the same transaction.
FAQs on Can Realtors Be Loan Officers at the Same Time
There are many frequently asked questions about whether can realtors be loan officers at the same time. Homebuyers can deal with one professional in charge of their home purchase and mortgage financing instead of two separate professionals.
Knowledge is king to becoming a real estate and housing professional. The answer is YES. Licensed real estate agents can be licensed loan officers at the same time.
Real Estate Agents are licensed professionals who represent home buyers and sellers. Gustan Cho Associates is looking to hire real estate agents as remote loan officers. Real estate agents who become licensed loan officers do not need any origination experience.
Is It Legal To Be Both a Loan Originator and Real Estate Agent?
The agent will be partnered with an experienced licensed loan officer and will work as a partner. Suppose the dually licensed loan officer/real estate agent wants to originate their loans without a loan officer partner. In that case, the realtor must have at least one year of full-time loan origination experience. The loan officer needs to be knowledgeable about a loan officer’s origination system, such as Lending Pad, Encompass, or Calyx Point. The best real estate agent is knowledgeable not just in showing homes or listing properties but has extensive knowledge in all areas of real estate.
Homebuyers Being Represented By a Realtor Who Is Also A Loan Officer
Top realtors have knowledge of the neighborhoods. Location, location, location is the name of the game in the world of real estate. Top-producing realtors need to be experts in the areas and neighborhoods they represent. Expertise and knowledge differentiate a top-producing licensed real estate agent from a rookie.
Should I Use A Dually Licensed Realtor and Loan Officer?
Homebuyers and sellers will thoroughly qualify real estate agents who know their comparable sales, title issues, zoning, legal issues, and last but not least, have general knowledge of mortgage lending. A professional real estate agent should know the basics of mortgage loan programs in today’s marketplace.
Non-QM and non-Prime Mortgage Loans
Besides Conventional, FHA, USDA, and VA loans, Gustan Cho Associates Backlinks Shows You Are Strong a Topic and has over 190 wholesale lending relationships with non-QM and alternative wholesale mortgage lenders. Top realtors should know the right questions to ask a loan officer about mortgage lending guidelines.
Can Realtors Make Dual Income As Loan Officers?
Many licensed real estate agents hold special certifications in areas of real estate besides just holding their real estate salesperson licenses.
I have encountered many real estate agents with law degrees, appraisal licenses, and insurance licenses. Many realtors with licenses in other areas may not be active in those fields.
Holding licenses because having expertise in other areas of real estate makes them more marketable agents. In this article, we will discuss and cover how real estate agents become loan officers simultaneously and make money as loan officers and real estate agents on the same transaction.
Career Opportunity For Realtors To Be Loan Officers at the Same Time
Can Realtors Be Loan Officers at the Same Time? The answer is yes. NEXA Mortgage dba Gustan Cho Associates NMLS 1660690 is recruiting professional real estate agents with at least a one-year loan origination experience. Need to be familiar and expert with a loan origination system such as Encompass or Calyx Point.
How Can Realtors Be Loan Officers at Gustan Cho Associates?
Realtors with no loan origination experience may be considered case-by-case if they are close to our Oakbrook Terrance, Illinois branch and one of our branch offices.
Many realtors have licensed mortgage loan originators. Some realtors who are licensed mortgage loan originators do not originate many loans.
We are only looking for realtors who are actively originating at least one to three loans per month. Some real estate agents with their NMLS MLO licenses hold mortgage licenses, while other realtors practice loan origination to supplement their full-time real estate careers. Gustan Cho Associates will provide exclusive leads.
Regulations on Can Realtors Be Loan Officers at The Same Time
Licensed realtors can be loan officers. However, there are strict rules and regulations. Many successful full-time realtors are also full-time mortgage loan officers. These hard-working professionals are in demand.
Many home sellers will choose a realtor, a licensed mortgage loan originator, due to their professional credentials.
Here are the rules and regulations for being both a licensed real estate agent and a licensed mortgage loan originator at the same time. Real Estate Agents with their real estate clients CAN NOT represent the same client as a loan officer on FHA loans.
Licensed MLOs Cannot Represent Buyers on FHA Loans as Dual Realtor/Loan Officers
They can originate other loan programs such as VA, USDA, conventional, jumbo, and non-QM loans. Gustan Cho Associates has a team of loan officers who are not realtors who can team up with realtors who are loan officers.
Realtors who are licensed loan officers cannot originate FHA Loans for their real estate clients.
Theoretically, they can originate any conventional, jumbo, portfolio, or commercial loan for their real estate client. However, most mortgage companies will not allow licensed real estate agents to be loan officers for the same client in any loan transactions.
Can Real Estate Agents Be Loan Officers on The Same Transaction?
There are instances when a real estate agent cannot be a loan officer on the same transaction. Not in all transactions can realtors be loan officers at the same time.
There are instances when buyers of mortgages on the secondary mortgage market will not purchase non-FHA secured loans of borrowers represented by a real estate agent and loan officer on the same transaction after the loans have closed and funded.
Moreover, if you are a realtor, you might use your realtor’s commission for a down payment for a property. Suppose the real estate client is not their own and does not represent the home buyer or property buyer as a real estate agent. In that case, the real estate agent can originate any mortgage loan program, including FHA, VA, USDA., or Jumbo, and non-QM/specialty loans.
We Are Hiring Realtors To Be Dually Licensed Mortgage Loan Originators
Licensed real estate agents interested in becoming licensed mortgage loan originators, please contact us at (800) 900-8569 or text us for a faster response. Or email at gcho@gustancho.com.
The possibility of real estate agents serving as loan officers has expanded with recent regulation changes, offering exciting opportunities.
We are a mortgage company licensed in multiple states with no lender overlays on government and conventional loans. Or please fill up the form below, and we will get back to you ASAP.
Ethical Considerations and Managing Conflicts of Interest
While this article has extensively discussed the legalities and career opportunities of being a real estate agent and a loan officer, it is vital to recognize and address the potential ethical considerations and conflicts of interest that may arise in these dual roles.
Ethical Considerations
Being a real estate agent and a loan officer at the same time presents unique challenges and responsibilities. Clients must be able to trust that their interests are being represented faithfully. Transparency and open communication are crucial. Clients must be fully informed of the dual roles and provide explicit consent to proceed under this
arrangement.
Managing Conflicts of Interest
A clear policy must be in place to identify and manage conflicts of interest. This might include providing clients with alternative loan officer options and fully disclosing any financial incentives related to both roles. Ensuring clients are comfortable with the dual-role arrangement is paramount.
Providing clients with comprehensive information about how their needs will be met, how their information will be handled, and how any potential conflicts will be resolved will contribute to a successful relationship.
It is essential to approach this dual role with a clear understanding of the ethical considerations and a robust strategy for managing potential conflicts of interest. For more information on the ethical guidelines, potential challenges, and best practices for managing this unique career opportunity, please do not hesitate to contact John Parker at Gustan Cho Associates, a dba of NEXA Mortgage, LLC.
Frequently Asked Questions (FAQs)
- Can realtors work as loan officers at the same time?
Yes, it’s possible for realtors to also work as loan officers simultaneously. Still, there are certain considerations and regulations they need to adhere to. - Are there any conflicts of interest if a realtor is also a loan officer?
There can be potential conflicts of interest, as the realtor might have a financial incentive to steer clients towards their own loan products or lenders they are affiliated with. However, ethical standards and regulations are in place to mitigate such conflicts. - Do realtors need special licensing or qualifications to work as loan officers?
In most jurisdictions, real estate agents and loan officers require separate licensing and qualifications. Realtors typically need a real estate license, while loan officers must be licensed according to mortgage lending regulations. - How can I ensure transparency if my realtor is also a loan officer?
Communicating openly with your realtor about their dual role and any potential conflicts of interest is essential. You can also request that they disclose financial arrangements or affiliations with specific lenders. - What regulations govern realtors who also work as loan officers?
Regulations regarding dual roles vary depending on location. It’s crucial for individuals working in both capacities to understand and comply with relevant laws, licensing requirements, and codes of ethics set forth by their respective governing bodies. - Should I be cautious when working with a realtor or a loan officer?
While it’s not inherently problematic, exercising caution and ensuring transparency is wise. Verifying that they are acting in your best interest and providing unbiased advice is essential. - Can a realtor provide unbiased advice if they are also a loan officer?
It depends on the individual’s integrity and adherence to professional ethics. Realtors and loan officers should prioritize their client’s interests and provide impartial guidance, disclosing any potential conflicts of interest. - Are there any advantages to working with a realtor who is also a loan officer?
Some clients may appreciate the convenience of providing both services by one individual or firm. However, it’s essential to ensure that the realtor maintains transparency and always acts in the client’s best interest. - Can a realtor lose their license for unethical behavior related to their role as a loan officer?
Yes, unethical behavior in either role can result in disciplinary action, including fines, suspension, or revocation of licenses. Realtors and loan officers are subject to professional standards and regulations to protect consumers.
Can Realtors Be Loan Officers at Gustan Cho Associates?
Gustan Cho Associates always looks for hard-working real estate professionals who want to originate loans. The ideal candidate is a hard-working realtor with at least one year of mortgage loan origination experience. The candidate should be an expert in a loan origination system (LOS) such as Encompass or Calyx Point. Gustan Cho Associates provides exclusive leads seven days a week. Please send a cover letter and a copy of your resume to gcho@gustancho.com.
This article on Can Realtors Be Loan Officers at The Same Time was UPDATED on March 26, 2024, by Gustan Cho, NMLS 873293.
Want To Get Started? Gustan Cho Associates Is Hiring Real Estate Agents To Become Loan Officers
