I recently found a company who allows its agents to also handle mortgages was wondering if anyone does this now or thinks this is a good idea

I'm curious to know this too. I'm studying to be a mortgage agent in CA and since I'm required to have my real estate license I would like to do some real estate on the side.

Yes it's legal in California. And yes anyone who originates a mortgage in CA must have a real estate license.

The CAR & DRE web sites both have info.

I do it. Personally I don't care much for the mortgage end, but if the person requests that I do the mortgage for them I do it. Also I have mortgage related websites and get leads from them, I end up doing those (mostly out of state) and sometimes I split the work with someone else at my mortgage company and split the commission.

sounds unethical to me but thats my opinion only but serving on many boards I can tell you you are leaving yourself wide open to lose your license all it takes is one complaint showing you didn't follow the code of ethics many items come to mind that could apply .

thanks i think i will check more into but the thought of either being the agent selling or buying the house or doing the broker for the mortgage for a deal is a good way to stay afloat as long as i dont try to represent both ends

Marcus I think you will be glad you did RESPA is very strict and I find the local boards are pretty tough too . I know many will argue the point but i bet in court or hearing you will loss and look bad in front of your peers and could effect your livelyhood . Be careful

thanks i will

Here's an answer to all of those questions. At my company we provide real estate, mortgage, insurance, title and closing services, and a home warranty all under one company name. It is 100% legal to be an agent for someone as well as be the LO who writes their mortgage, the key word here is disclosure. You must disclose that you not only provide real estate services but you can also write their mortgage, however they are not obligated to use your company for the mortgage. Don't listen to anyone who says it's illegal or unethical because it's just not true. Poeple in my office make a lot of money doing this. It's even possible that you have a buyer who purchases one of your listings and you also provide the mortgage. It's very profitable and in this market you need to diversify and I highly reccomend that you try to capture this business. If you are interested in learning more: http://www.joinwpi.com and type in my name (Kevin Penner) and check out what World Properties International has to offer. I can offer up to 70% commission split to start for all agents and loan officers.

I agree with Kevin so far. The key word is Disclose! You have to get them to understand that you are not the only choice and you dont want to make it sound like they even SHOULD use you for any reason other than better service/product. But get them to sign the disclosure. I was thinking about doing this as well. Either youre gonna do people right and build a solid rep or youre gonna get greedy and get burned. Its all in your intentions.

I know you can do it but its fround apon for reasons such as common intrest or something like that but I would shoot you get to checks with your name on them

What???? Type slower.

You can do it but you would be steering each client into both services. It is a compliance nightmare.

I still think a lot of people, mainly those who are stuck in theirs way and/or don't have accesss to this resource, still have a negative idea of the concept. There is absolutely no need to be using the words steering or compliance nightmare if you know what you are doing and are not afraid to offer more services to your clients as well as make some extra cash. The idea is DISCLOSE that you are both an agent and a mortgage consultant and OFFER them both services. Once you have them sign the disclosure then your compliance is done. That document doesn't bind them to anything, it just is a waiver that they are aware that you are both an originator and agent and they are able to use you for both services but are NOT required to. After this you continue servicing their real estate needs but don't push the mortgage, if you've done your job and they really like and respect you they will come to you for the mortgage instead of finding someone else. There is no steering involved if you're good at what you do. Most people if provided with what they consider an exceptional service will continue to give you their business.

Here in California, you can, as long as you have a license. A lot of the agents in my office handle the loan as well as the buyer in the transaction. I would do them myself, but I get a headache just thinking about all the crap involved in doing both.

I understand disclosure, but is this legal in all 50 states? I will be operating out of Florida very soon. I'm definitely going to have to look into that.

If everything seems to be copasetic, then I will more than likely take advantage of both areas. It seems like a great tool to have, and if marketed correctly, it could be extremely lucrative.

It is illegal in the state of Ohio per Senate Bill 185.

It seems that functioning as both a mortgage broker and real estate agent in a transaction would lead to possible issues and great liability.

Anyone heard of horror stories from someone doing this? Maybe it would work fine....I don't know.

I believe you're fine as long as you disclose it. But keep your pin striped suite handy in case the deal goes sour and the bank is looking for someone to blame.