Getting Dual Licensure as a Mortgage Loan Officer Real Estate Agent
Quick Summary
This document serves as a comprehensive guide for realtors considering dual licensing as mortgage loan officers, highlighting the benefits and processes involved.
- FHA Rule Changes: Recent changes in FHA Conflict of Interest rules allow realtors to become licensed mortgage loan officers in most states, specifically 45 states.
- Licensing Process: The licensing process is designed to be straightforward for realtors, typically requiring 20 hours of pre-licensing education, passing a national exam, and completing state-specific requirements. This can be completed in as little as two to three weeks, providing a clear and manageable path to dual licensing.
- Seamless Client Experience: Being dual licensed enables realtors to provide an end-to-end service, enhancing client trust and streamlining the mortgage process by reducing the number of parties involved.
- Increased Earnings: Dual licensing opens up the opportunity for realtors to earn additional commissions from processing and closing mortgage loans. This creates a dual revenue stream, potentially increasing your earnings significantly with minimal extra effort, a prospect that can be both motivating and exciting.
- Leveraging Resources: Realtors can collaborate with existing mortgage companies to utilize their technology and support, easing the loan processing and closing tasks. This support system ensures that you're not alone in this journey, providing the necessary resources to successfully navigate dual licensing.
- Understanding Both Industries: Holding both a real estate and mortgage license enables professionals to navigate the intertwined industries better, benefiting clients by providing comprehensive knowledge of both the real estate and mortgage processes.
- Opportunities for Networking: Being dually licensed enhances networking opportunities, as real estate agents who understand mortgage processes can better serve their clients and collaborate with other professionals in the industry.
FHA Rules Changes
Recent changes in the FHA Conflict of Interest rules have opened up a new avenue for realtors. Now, in most cases, realtors can also obtain a license as mortgage loan officers. This dual role is currently permitted in an overwhelming majority of states, as many as 45 states.
If you’re a realtor considering becoming licensed as a loan officer, here are some of the benefits of being dual-licensed.
How to Get Licensed as a dual-licensed real estate professional and a Mortgage Loan Originator
The process of obtaining a mortgage loan officer license is not as complex as it may seem. For most realtors who have already passed one or more certification exams, the journey should be straightforward. The specific requirements vary by state but typically involve completing 20 hours of pre-licensing education, passing a national exam, and fulfilling other state-specific requirements. In fact, in about 20 states, there are no additional state law course requirements. The education and testing can be completed in as little as two to three weeks.
The Benefits
Provide a seamless professional experience for your clients.
Imagine being able to provide an end-to-end service to your clients, managing the process, and exceeding expectations through to closing. As a dual-licensed realtor and mortgage loan originator, you can now be a one-stop shop for your clients, helping them structure and execute their home search and securing the best home financing for them. This not only builds trust but also reduces the number of people involved in a transaction, streamlining the mortgage process. You now have more control over the outcome!
Increase commission per transaction.
By becoming a licensed mortgage loan officer, you can now also earn commission from processing and closing mortgage loans for your clients. This dual revenue stream allows you to increase your earnings from each client transaction. The best part? It requires minimal additional effort on your part, making it a financially rewarding opportunity that's well worth pursuing.
Leverage existing technology and teams.
By partnering with an established mortgage company, you can tap into their platform, lender relationships, technology, and team to simplify the loan processing and closing tasks. This collaboration allows you to focus on your core responsibilities as a realtor, while also providing your clients with successful home financing solutions.
Ultimately, obtaining a mortgage loan officer license opens up numerous opportunities for realtors, enabling you to provide a seamless, end-to-end experience for your clients.
Contact us to learn more about obtaining a license and unlocking the benefits of dual licensing as a realtor and loan officer.
Are you curious about whether you can hold both a Real Estate License and a Mortgage License?
The mortgage and real estate industries are closely intertwined, raising the question: Is it possible for one person to hold both a real estate license and a mortgage license simultaneously? The short answer is yes, you can. Let’s explore the similarities and differences between the two professions, as well as what it entails to hold both licenses.
Real Estate vs. Mortgage
The real estate and mortgage industries wouldn’t exist without each other, but what are some of the similarities and differences between the two verticals?
Common Themes
Both real estate and mortgage professionals must be at least 18 years of age. They must complete specific Pre-Licensing requirements, pass licensing exams, and take annual or semi-annual Continuing Education to maintain their licenses. Real estate agents and Mortgage Loan Officers (MLOs) are typically paid through commissions, although this arrangement varies depending on the brokerage or financial institution for which they work. Beyond the complex qualifications, most real estate and mortgage professionals also share an entrepreneurial mindset and are driven to help others. Although you may see many similarities between the two careers, there are a few key differences that distinguish them.
Differences
Real estate agents help clients navigate the home-buying process. They work closely with their clients to find and purchase the perfect property, bringing extensive knowledge of the real estate industry and housing market to the table. Mortgage Loan Officers guide clients through the financial aspects of home buying, including finding the perfect home loan and assisting them through the loan application process. Loan Officers offer extensive knowledge of the mortgage industry and will coach clients on what their down payment should be, what a favorable credit score is, and how to find the best interest rates.
As a Mortgage Loan Officer, you must meet a 'financial responsibility' standard. This standard varies by state, with some states having very rigid requirements, almost as stringent as qualifying for a conforming loan. In contrast, most other states are more concerned about currently significant adverse credit information. MLOs are held to stricter regulations than real estate agents and are required to register with the Nationwide Multistate Licensing System (NMLS). If you have not done so already, obtaining your NMLS number takes 1-2 minutes. https://www.statemortgageregistry.com/Public/Login.aspx Click' Request an account.' Click 'Individual' and supply the requested information. There is no fee to create your NMLS account and issue your unique identifier, a 7-digit number.
Holding Multiple Licenses
It is possible to hold both a mortgage license and a real estate license simultaneously. The same licensee acting as both the MLO and the real estate agent on a single transaction is not extremely common, and if it does occur, that fact must be disclosed. (Each state has its regulations, so be sure to check with your state regulator.) Many mortgage companies prohibit licensed real estate agents from acting as the Mortgage Loan Officer for the same client in any loan transaction.
These regulations were implemented alongside rules that protect consumers and reduce fraud in the mortgage industry, thanks to the Federal SAFE Act of 2008.
Benefits of Holding Both License Types
It’s beneficial to you as a professional to have both a mortgage license and a real estate license. Real estate clients appreciate it when their agent thoroughly understands the mortgage process, including aspects such as interest rates, credit scores, down payments, incentives for first-time homebuyers, and the preapproval process.
Likewise, mortgage clients find it helpful to have a Mortgage Loan Officer (MLO) who understands the real estate industry, especially when dealing with title companies and real estate brokerages. Networking with other MLOs who are also real estate agents offers referral opportunities for you and your associates alike.
Regardless of your career stage, holding a real estate and mortgage license is a crucial way to differentiate yourself from other professionals in the industry. You can offer more value to your clients and open up your network to those in neighboring industries. From loan origination to refinancing options and referrals, working in either part-time or full-time verticals can make you the trusted real estate and lending expert in your local market.
Dual Licensing Explained
Yes, it is possible to have both a real estate and mortgage license; this is known as having a dual real estate license. Not only can you have a dual license, but you can also act as the REA and the MLO for the same real estate transaction. Acting in both roles provides several advantages to both you and your client, including offering complete transparency of the transaction and increasing your overall commission on the home purchase. Let’s evaluate the benefits and licensing requirements in more detail.
The Benefits of Dual Licensing
The relationship between loan officers and realtors is a cornerstone of success in the real estate industry. This partnership helps streamline the homebuying process, providing clients with comprehensive solutions and fostering a network of shared expertise. However, beyond conventional collaboration, there is a growing recognition of the benefits when a realtor also wears the hat of a loan officer. This dual role allows realtors to offer a more integrated service, possessing a deep understanding of financing intricacies and property dynamics. By combining these roles, realtors-turned-loan officers enhance their value proposition and establish themselves as versatile professionals who can guide clients through every aspect of their real estate journey. Obtaining a license as a loan officer strengthens the realtor’s relationship with clients and positions them as trusted advisors in the competitive real estate landscape.
Acting as both the Real Estate Agent and Mortgage Loan Originator lets you be a one-stop shop for your clients.
Clients often feel overwhelmed by the complex process of finding a property and securing a mortgage. As a real estate agent licensed as a mortgage broker, you would have the power to offer a streamlined, one-stop solution, reducing stress and making the process more manageable for your clients.
Comprehensive expertise helps you and your clients.
A real estate agent licensed as a mortgage broker possesses a more comprehensive skill set and can guide clients through the complex landscape of mortgage options, interest rates, and loan types, leveraging their in-depth knowledge to secure competitive deals and minimize errors. This holistic expertise can be invaluable for clients navigating the complexities of the housing market.
Seamless communication throughout the real estate transaction.
When a real estate agent is licensed as a mortgage broker, it eliminates the everyday frustrations of miscommunication between real estate agents and mortgage brokers. This leads to a smoother transaction process, reduces lag times or delays, and allows clients to feel more in control.
An excellent way for real estate agents to diversify income streams
As a real estate agent, obtaining a mortgage broker license opens the door to diversified revenue streams. Especially in a turbulent market, having two revenue streams can stabilize your income and ensure resiliency.
While obtaining a mortgage broker license may not be suitable for all real estate agents, it offers several benefits to clients and you as an agent.
How To Get Your MLO License as a Real Estate Agent
If you’re a real estate agent looking to obtain your MLO license, obtaining dual licensure is relatively straightforward. First, confirm that the state where you work allows dual licensing for the same transaction or, if limited, serving in only one professional role on a single transaction. Second, kick off your state-specific mortgage licensing process. At AAA Mortgage Training, we help real estate agents obtain their Mortgage Loan Originator (MLO) licenses every day.
The first step in the process does not cost any money and only takes 1-2 minutes of your time, registering with the Nationwide Mortgage Licensing System (NMLS), how to register with the NMLS:
https://www.statemortgageregistry.com/Public/Login.aspx
Click "Request an account"
Click "Individual"
Then supply basic contact information and your NMLS account will be created and your 7 digit NMLS number will be issued. You need that number for each step of the licensing process including getting your Prelicensing Education credit on your NMLS account, scheduling your NMLS test and your license application submission to state licensing agencies through the NMLS.
Contact Us For More Information.
Click Here To Get Your Questions Answered 1-317-201-7612
Courses to Start the Mortgage Licensing Process
(Some states require an additional state law course, and we have those courses too see state education requirements)