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#2273398 - 07/26/22 06:12 PM Performing dual duties
Compliance0411 Offline
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Joined: Jun 2022
Posts: 26
We are a non-bank lender and I was wondering if there is anything (on a federal level) that precludes an individual from acting in the role of Mortgage Lender and Real Estate Agent if they were to maintain their RE License with a realtor and also work for a non-affiliated lender? I can't find a federal reference that says you can't. I understand that they would need to be ethical and inform the owner that they are acting in both roles (from the very beginning of the relationship with the proposed buyer/borrower) so that the transaction is above board. Outside of that, is there any reason they cannot earn both commissions?

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#2273399 - 07/26/22 06:25 PM Re: Performing dual duties Compliance0411
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,383
Galveston, TX
Totally a State law issue. Acting as both the MLO and the real estate broker on the same transaction seems to be a huge conflict of interest to me.
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#2273400 - 07/26/22 06:36 PM Re: Performing dual duties Compliance0411
Compliance0411 Offline
Junior Member
Joined: Jun 2022
Posts: 26
The Conflict of Interest part is bothering me as well but not sure what to site if it's not a state law or federal law violation besides business ethics.

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#2273402 - 07/26/22 06:54 PM Re: Performing dual duties Compliance0411
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,383
Galveston, TX
Are you an approved FHA lender?
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#2273408 - 07/26/22 07:55 PM Re: Performing dual duties Compliance0411
Rocky P Offline
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Joined: Jun 2003
Posts: 7,460
Florida
One conflict is to get the RE commission on the sale of the house you make sure the buyer qualifies, and work the file (or ignore/bury) anything negative. Bonding company might have an opinion too.
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#2273950 - 08/09/22 08:26 PM Re: Performing dual duties Rocky P
Compliance0411 Offline
Junior Member
Joined: Jun 2022
Posts: 26
Excellent point!

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#2273951 - 08/09/22 08:26 PM Re: Performing dual duties rlcarey
Compliance0411 Offline
Junior Member
Joined: Jun 2022
Posts: 26
Yes

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#2273953 - 08/09/22 08:53 PM Re: Performing dual duties Compliance0411
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,383
Galveston, TX
If you are an FHA lender, having them on staff in a dual capacity would violate FHA rules. An approved mortgagee for FHA lending.

Full Time, Part Time and Outside Employment. (TOP) A mortgagee may employ staff full time or part-time (less than the normal 40 hour work week). They may have other employment including self-employment. However, such outside employment may not be in mortgage lending, real estate, or a related field. Direct endorsement underwriters are included in this provision. An underwriter may not work on a part-time basis for any other mortgagee, even underwriting conventional mortgage loans. An underwriter may not underwrite loans for a parent or subsidiary of the underwriter’s approved employer. A direct endorsement underwriter’s authority is through the employer and does not extend under any corporate “umbrella.”
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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