I've always be interested in this. I know it can be a fine line to tread here, but I know it is often done successfully. Disclosure to the fullest. I just can't help but think I could work with alot of first time buyers especially. Anyone have any ideas about this. I've posted about it before and I plan on taking the SC required 8hour class if for no other reason than to become more knowledgeable about mortgages and the process, although I'm sure its as watered down as RE classes.

Thanks....

I had a mortgage broker approach me about getting a mortgage liscense - but his pitch was that I would just refer people to him and get a referal fee. it was tempting - but I haven't pursued it.

Big, big mistake.

Real estate is consuming enough. When will you have the time to originate, shepherd loans though the process and handle mortgage problem solving?

Plus, it is an industry that is always changing.

Do one thing well. Not two poorly.

I think Staggart makes a very valid point. You could earn additional income but you need to disclose that you did. That said, I would rather the client received the benefit rather than an additional commission.
There is enough commission scrutiny upon us in general without additional dipping opportunities.

Better to do the best we can for the client.

During the boom times I had a broker friend that processed mortgages as well as worked with buyers.You will find most that offer mortgages and working with buyers to find homes charge NOTHING on the loan origination end as a way to seperate themselves from the competition.My friends husband also owned a mortgage company so she would partner with him on some deals.Last time I talked to them was about 8 months ago and they were closing 10 to 12 deals a month.Before I recieved my brokers liscense and started my own company they wanted me to work for them.I thought about it for awhile but then I started working with developers doing commercial and enjoyed it much more that residential so I started my own thing.

You will face ALOT more scrutiny now doing martgages than in the past and it will be harder to do both.

good luck

Disclosure aside, I wouldnt really pursue this revenue even though I have thought long and hard about it. The only company I would join would be with my preferred lender - who has never failed in my both rates and closing costs.

However, I feel that at this point in my business, I do not have time to pursue another venture - to study, understand and provide the best of service.

I feel that doing both will not serve my clients at best because they didnt have me at my best (even if my clients want to use me).

Just my 2 cents.

About two years ago, I was kinda bored with real estate, so decided to "do mortgages." It was a lot harder than I expected it to be. I read several books and pretty much understood the theory of putting a loan together, but the actual practice of it would have taken me a long time to feel competent doing. After two months, I bagged it and focused again on real estate. I imagine that it's much harder today than even two years ago.

staggart
I agree with you - I looked at it as more of a referal type business and not having to process loans etc.

I would think with mortgages the easiest/best way to get business would be to heavially market and network with realtors asking for referals - the down side is - most won't send you thier clients if you are also a realtor

I would stick to one or the other

ok..thanks for the replies.

Tried it for a while, but it wasn't really my thing. I do think it's important for every agent to understand the in and outs of a loan in order to be in full control of a transaction.

From a different perspective, I have been doing both for over 4 years. I was a loan officer for another broker for the first 2 years to get training. Then I opened my own mortgage brokerage. I have enjoyed doing both sides of the transaction, but will say it probably isn't for everyone. I am good at multi tasking and math is my strong suit, so mortgages came easily to me. Most of the buyers that I work with use me on the mortgage side as well. I am usually able to beat my competition since I do not try to make as much on the mortgage side and my buyers like having one point of contact. Obviously they can use whoever they want, but generally the use me. I also like being in control of the situation on the mortgage side to make sure things are getting done right and best for my buyer.
Again, I'll say it's not for everyone, but it's worked out well for me.

And..as far as what Vacation guy said about someone wanting to give referral fee..DON'T DO THAT EVER. It violates RESPA. A loan officer can be a real estate agent as well, but they must do certain parts of the loan process to get paid. They can not just refer a person to the broker and get paid.

If it violates RESPA what about all of these lead companies that pay for mortgage leads?

Lead Point is a big one? there are tons of others

You can pay for leads, but you can't pay for only those that close. That violates RESPA. There are tons of lead companies out there and in my experience on the mortgage side of things, I have yet to get what I paid for! I have been in the mortgage business almost 10 years. I just passes the test in November and signed on with a RE broker. I plan on making a career change. I will be doing both mortgages and RE for the next 6 months. I will not do the mortgage on any RE transactions that I am involved in. I am mostly going to do refinances. This will allow me to divert 90% of my time to learning the RE side of things and bring in some income at the same time.

I am familiar with RESPA. I am both a RE & Mortgage Broker in Texas. Please explain what part of the RESPA has to do with paying (or not) for only leads that close.

If you paid anyone for a referral/lead only if it closed it would violate RESPA. You can't pay for referrals. You can buy general leads, but you can't just pay for those that close.

http://www.hud.gov/offices/hsg/sfh/res/respamor.cfm#HT

" Section 8 of RESPA prohibits a person from giving or accepting any thing of value for referrals of settlement service business related to a federally related mortgage loan. It also prohibits a person from giving or accepting any part of a charge for services that are not performed. "