Being a Mortgage Loan Officer and Realtor Simultaneously

Jacksonville, Florida
Mortgage Brokers & Lenders
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Being a Mortgage Loan Officer and Realtor Simultaneously

Jordan Baker
Lender 路 Jacksonville, FL 路 Member since 2021 路 16 posts 路 4 votes

Hey Bigger Pockets Family, 

I am recently transitioning out of a W2 based job to become an MLO full time as it being my part time gig was making me more money most months then my full time job. 

However, I like having two streams of income at all times. 

I am wondering if it is possible to have your realtor license and your MLO license at the same time and do both. Now before I get all the people telling me to focus on one, I know doing both at the start is not feasible and it is better to focus on one. However, what I am trying to figure out is can I be an MLO and lets say that I get someone pre-approved and refer them to a realtor, that realtor then goes and helps them find their dream home and gets under contract, once the deal closes could I, as now a licensed realtor as well, get a referral commission from the real estate agent I referred them to. From what I read this seems like it is an acceptable to do both the originating and the referral as long as it is not a government (FHA, USDA, VA) loan. Even if i didn't do the loan for that client because it had to go FHA, I think it could be a good way to open up networking, a larger pipeline, and have a back up source or income. Please let me know your thoughts, concerns, advice, and experience in the matter.

Thank you Kindly. 

-Jordan 

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Zack KarpPro Member
Lender 路 Schaumburg, IL 路 Member since 2015 路 833 posts 路 774 votes
4y

@Jordan Baker you are correct, you can be a licensed MLO and Realtor at the same time, and even on the same transaction as long as it's not a Govie loan.  But to @Scott E. point, yes it can be a conflict of interest for employment, and you must disclose it to each employer, and they must allow it.  Many banks and larger lenders will not let you be a licensed realtor, you'll have more luck with smaller companies.

Best of luck!

847-387-5513
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  • Scott E.
    Contractor 路 Scottsdale, AZ 路 Member since 2010 路 2k+ posts 路 3k+ votes
    4y

    I don't have a clear yes or no answer for you, but this thread caught my eye for a reason so I'll share my experience.

    Right out of high school in 2005 I got my real estate license. I was planning on becoming a big shot entrepreneur as a real estate agent and was super excited about that trajectory of life. But just after taking my test, I learned of a friend who was making a KILLING selling sub-prime loans for an old mortgage lender called Countrywide.

    Well one thing led to another, I applied for the MLO job and got it, and Countrywide told me that I couldn't be a licensed agent at the same time as an MLO due to it being a conflict of interest.

    All that being said, I still don't know to this day if that was just a Countrywide rule or more of a formal regulation. But there's my story. Thanks for sending me down memory lane.
     

    0Reply
  • Jordan Baker
    OP
    Lender 路 Jacksonville, FL 路 Member since 2021 路 16 posts 路 4 votes
    4y

    Hey Scott, 

    Thank you for your insight, I definitely want my focus to be the loan origination. However, if I could make both happen whether or not that looks like me just doing one or the other on each deal, then I think it could be a solid way to open up some dual streams of income. 

    1Reply
  • Zack KarpPro Member
    Lender 路 Schaumburg, IL 路 Member since 2015 路 833 posts 路 774 votes
    4y

    @Jordan Baker you are correct, you can be a licensed MLO and Realtor at the same time, and even on the same transaction as long as it's not a Govie loan.  But to @Scott E. point, yes it can be a conflict of interest for employment, and you must disclose it to each employer, and they must allow it.  Many banks and larger lenders will not let you be a licensed realtor, you'll have more luck with smaller companies.

    Best of luck!

    847-387-5513
    3Reply
  • Jordan Baker
    OP
    Lender 路 Jacksonville, FL 路 Member since 2021 路 16 posts 路 4 votes
    4y

    @Zack Karp I appreciate the feedback! Right now I work with a 5 person mortgage brokerage but we do a lot of work for one Realestate team in particular. My thought being I could originate for them and then the other clients I meet outside of that office I could refer to them already pre-approved to one help them out with their business and give them solid clients while still getting a referral commission. Right now my focus is mainly the origination side of things but I think down the line this would be a solid way to build a pipeline, grow business, and have two streams of income. Thank you for the feedback 馃憤

    0Reply
  • Dave Skow
    Lender 路 Seattle, WA 路 Member since 2014 路 2k+ posts 路 899 votes
    4y

    @Jordan Baker...becoming a full time MLO  right now will be  a  challenge  so its  good to  have another  income source  to  fall back on ....make sure that when you decide on  where you want to work - they are OK with  being an agent and a MLO  and   clarify  what limitations or gudielines  your  compnay and state  require ....you might aslo  reserach this  question with the DFI  in your location

    0Reply
  • Nicole Heasley Beitenman
    Investor 路 Youngstown, OH 路 Member since 2017 路 2k+ posts 路 2k+ votes
    4y

    Plenty of people do it. Just be careful that those referral fees don't violate RESPA. 

    1Reply
  • Aaron Pfeffer
    Lender 路 Los Angeles, CA 路 Member since 2022 路 22 posts 路 14 votes
    4y

    This is more common than you think, so yes, you can do both. Mostly...

    It's a loan officer who does some realty transactions here and there. Much less likely to be a real estate agent who also funds loans from time to time. 

    0Reply
  • Erik EstradaBusiness Member
    Lender 路 Member since 2022 路 6k+ posts 路 1k+ votes
    4y
    Quote from @Jordan Baker:

    Hey Bigger Pockets Family, 

    I am recently transitioning out of a W2 based job to become an MLO full time as it being my part time gig was making me more money most months then my full time job. 

    However, I like having two streams of income at all times. 

    I am wondering if it is possible to have your realtor license and your MLO license at the same time and do both. Now before I get all the people telling me to focus on one, I know doing both at the start is not feasible and it is better to focus on one. However, what I am trying to figure out is can I be an MLO and lets say that I get someone pre-approved and refer them to a realtor, that realtor then goes and helps them find their dream home and gets under contract, once the deal closes could I, as now a licensed realtor as well, get a referral commission from the real estate agent I referred them to. From what I read this seems like it is an acceptable to do both the originating and the referral as long as it is not a government (FHA, USDA, VA) loan. Even if i didn't do the loan for that client because it had to go FHA, I think it could be a good way to open up networking, a larger pipeline, and have a back up source or income. Please let me know your thoughts, concerns, advice, and experience in the matter.

    Thank you Kindly. 

    -Jordan 


     I am licensed to do both. In California you can hold a loan originator endorsement under the DRE. You could just be a buyer's agent and fund the loan at the same time, which happens all the time. Some clients are okay with it and some are not. You can be a successful loan officer just by having great relationships with realtors. I got my salesperson license in case someone wanted to come to me to represent them, like a family member or something. From a business perspective, you will do more work than necessary since to get leads you must go to open houses. Being a seasoned specialized LO is more scalable. Realtors will send you business if you are smart, helpful, and can take care of their clients. 

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    1Reply
  • Jordan Baker
    OP
    Lender 路 Jacksonville, FL 路 Member since 2021 路 16 posts 路 4 votes
    4y

    Hey Y'all thank you for the guidance and assistance. I think moving forward both are going to work nicely for building my business as an MLO and also opening up other oppertunites and streams of revenue as a realtor esepcially with the reffereal commision. Thank you all for the input and your time. 

    0Reply
  • Claudio Barrientos
    Member since 2023 路 3 posts 路 0 votes
    2y

    I am a Real Estate Broker and am looking to sit with my clients and get them preapporoved. 

    Is there anyone that has experience in choosing to work with a Broker or Lender, or deciding to become an in-house Mortgage Broker? 

    0Reply
  • Dave Skow
    Lender 路 Seattle, WA 路 Member since 2014 路 2k+ posts 路 899 votes
    2y

    @Claudio Barrientos- thanks ...are you considering becoming a MLO  or  are you  interested in some referrals for loan officers  for your clients ?

    0Reply
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