A real estate licensee who holds is also licensed for mortgages can also partner with another mortgage rep and the income earned from the loan can be paid to both.
There is an argument that there is a conflict of interests. There is also another side to this argument. A real estate licensee has a fiduciary responsibility to their client. A mortgage rep does not. A real estate licensee has a legal obligation to put your interests first. A mortgage rep works to make the loan at the highest yield possible for their employer. When an individual is both your real estate licensee and your mortgage rep, there is a benefit to the fact this person now has legal responsibilities to look out for your interests by way of their real estate license.
I do not function as a mortgage rep, but align myself with mortgage reps that are both knowledgeable about the fast ever-changing world of mortgages and who are trustworthy to look out for the interests of the client.
As Lynn stated, each state is different. Most lenders though went away from this because HUD is very stricted on this kind of topic. Besides, as a borrower, I would be very very leery of anyone that was both my realtor and loan officer. You might think you are getting a good deal on the mortgage side or they might have told you, "hey, I will take care of you", etc, etc. But I would have another loan officer check over your mortgage and your costs. All to often do I see that the borrower is either getting ripped off, or that that person doesn't really know what they are doing and actualy screws up the loan. If this is a friend or a family member, it's probably why you feel comfortable. But I will say this... for me to be very good to0 excellent at my job, I can't be both a realtor and loan officer. The only ones that I have seen do both are the ones that are desparate for money and aren't really good at both. Again, just be very very careful... and if they are asking for cash instead, a major red flag. I seriously would have another loan officer review your information and your rate and your costs.
Thanks, jeff Area Manager Infinity Home Mortgage cell : 609-440-5133 e-mail : email@example.com
PS.. and I am licensed to do loans in Florida. About 25% of my business is done in Florida.
Are you talking about your Realtor?
Or is your Realtor also your mortgage broker? NOTE: Some states may not allow Realtor to act as your loan officer
Yes Realtor does get paid via the seller at closing when you purchase any property.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors