How to Do a Mortgage As a Realtor
The National Association of Realtors trademarked the term "realtor." A licensed real estate agent who joins the National Association of Realtors may be called a realtor. Being called a realtor provides no benefit when it comes to originating mortgages. Different states have different laws and requirements concerning a real estate agent originating mortgage loans. Real estate agents must meet all of the federal, state and loan officer requirements even though they already hold a real estate license for their state.
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Instructions
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Talk with an official who works for the agency that regulates either real estate or mortgages in your state. Some states forbid real estate agents from originating the mortgage on the same transaction in which they act as a real estate agent. Know the laws in your state before you begin the process of licensing.
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Obtain your mortgage loan originator's license in the state you wish to do business in following all of the guidelines required by the state. The federal Secure and Fair Enforcement for Mortgage Licensing Act (SAFE) outlined the basic minimum requirements for obtaining a loan officer license in every state. These include education, testing, passing a criminal and financial background check and annual continuing education. Everyone, including real estate agents, must obtain the proper license before originating any mortgage loans.
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Provide the services a loan officer provides when originating a mortgage loan. Real estate agents must perform the essential duties a loan officer performs when originating or receiving compensation for originating a mortgage loan. This includes taking the application, obtaining supporting documentation, disclosing loan terms and assisting the borrower with locking the loan. You must tell your borrower you may be compensated for the mortgage in addition to your work is a real estate agent on the transaction. Knowing your state laws is imperative, as some states may forbid this practice.
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Tips & Warnings
Be up-front with your borrowers about all of your sources of compensation. Recommended that borrowers obtain multiple quotes for the mortgage besides yours. This prevents coercion or steering borrowers into conflicts of interest.
The Federal Housing Administration (FHA) forbids real estate agents from originating FHA loans when they are involved in the transaction as a real estate agent. These are popular first-time homebuyer programs that offer loans with very low down payments. Make sure it is in your borrower's best interests if you offer a loan scenario other than an FHA loan.
