Wasn't sure if there was a conflict of interest?
Thanks for the input.

I know of 2 associates who are licensed as both mortgage broker and real estate broker. What has happened with one is he dropped to associate real estate broker (his wife is the qualifying broker) and he then dropped to partner in the mortgage company. He ran in to all sorts of accusations (of course by other disgruntled agents) of running a monopoly, disclosure issues, and many others.

As for the other guy, he maintained qualifying real estate broker status, and let his sister run the mortgage brokerage, while he stepped down on the mortgage broker side.

I'm sure they both ran into many issues with attempting to do both. Maybe they "handed off" the mortgage side to get out of certain frowned upon situations.

I'd be interested in hearing if anyone is doing both successfully. From what I've seen, I would have no interest. There's too many "gotchas" and fine lines to walk.

I know several, they get away with it! The only issues incurred that I know of is: if the loan goes FHA, you can't be the listing/buyer's agent.

I am a loan officer and realtor. I can not get compensated on FHA transactions. Certain states allow dual capacity. Florida-Ga-Alabama-Texas etc. This is a great concept because it allows me to provide excellent customer service. Because I am in control of both transactions. It provides me excellent referrals and customer loyalty. You become a one stop shop.

I don't know that MN allows some one to wear both hats now in this market. Anyone know that for sure here in Minnesota?

I've worked in the mortgage business for many years and only recently decided to get my real estate license. I work full time as a Loan Officer and am not actively seeking out real estate transactions. I tend to buy and sell a house (my own) every two years (or less), so it made sense to get a license.

Aside from FHA (which prohibits being compensated on both sides of the transaction), I don't know of any laws that prohibit working in both professions. I know that in rural parts of the country, it's actually fairly common. I personally wouldn't even attempt to solicit both sides of the business, just because it's not something I would ever be comfortable doing. The two businesses are completely separate for me. In fact, I never even mention to my mortgage clients that I'm also a licensed agent, nor do I ever tell a real estate client that I could also do their mortgage for them. My mortgage clients know me as a Loan Officer. My real estate clients know me as an agent. It keeps things very simple!


John from Boston

Minnesota ia a dual capacity state.

I have done both for 5 years and my clients like it. Not every buyer has used me for the mortgage, but most have. They like the idea of one person doing it all and I am able to give them better rates, since I am not trying to make as much on the mortgage. It's not for everyone. You have to be good at both sides and many people are not good at trying to master both sides.

i am both also in NY.

I hold my actual mortgage brokers license and real estate broker.

I just started the mortgage aspect and I must say it is ALLOT to learn, especially in todays climate. You get what you think is a slam dunk and it turns out that something is slightly off and you cant get an approval...

And yes the only thing you cant do is FHA on the same deal as when you are on the real estate broker side. Problem is that darn near everything nowadays is FHA with the lack of PMI.

I don't think I could ever do it. I believe it to be a conflict of interest. Please don't flame me for this. This is just my own opinion.

First of all, I believe many people that do one service for their client steer their client to use them for the other service too. I don't believe everyone in this position gives their clients multiple options. Too much steering.

Second, someone mentioned it to be like a one-stop shop. I believe this can hurt someone's service in a way too. I don't think anyone can master one business if they are focused on another business all the time as well. Real estate and loans are completely seperate businesses. It is kind of like going to a doctor for heart surgery, but the doctor has multiple skills, such as plastic surgery, gynecology, dentistry and he is also a veterinarian. I would be a bit concerned that my doctor may not know everything there is to know about heart surgery if he does all these types of jobs. Isn't there a saying, "jack of all trades is a master at none".

Again, this is just my basic opinion. I think in some cases the client can be served well too, but for the most part, I disagree.

[b][quote=Agent 007]I don't think I could ever do it. I believe it to be a conflict of interest.
[/quote][/b]

It's certainly no more of a conflict than acting as a dual agent, which I think is FAR more egregious. While I certainly don't disagree with you that any client should be given options, I think most savvy consumers check rates with several loan officers and more times than not, pick the one who offers them the lowest rate and lowest closing costs. That's been my experience, over 6 years in the mortgage industry.

Nobody will ever convince me that dual agency is a good thing. I've never though it should be legal and am shocked that it is. At least if the same person is handling both the real estate side of a transaction and mortgage side of a transaction, they are only representing the interests of one person!


John from Boston

I agree with John. I don't see it as a conflict of interest. If anything, it is double pressure to make sure the deal closes. I am working strictly for the buyer to make sure everything goes smooth. What is the conflict of interest there? Of course, they are made aware that they are fully able to shop around and choose whoever they would like to use. I like being in control of both sides and knowing that I am going to get the deal to closing, as opposed to other times, hearing that everything is fine and then last minute find out it is not. I am sort of a control freak though, so maybe that is just me.

Most of my business comes from my knowledge of the down payment assistance programs available at the different lenders and their qualifying guidelines. Once I understand the buyer's situation, a list of lenders is provided that may be the right fit for them. I'm often accused of trying to be both a mortgage broker and an agent because I blog about the programs. Regardless, this strategy has translated into a consistent flow of business. So while I'm not a mortgage broker, I believe there's a place for that skill set as an agent too.

I think it's an obvious conflict of interest! Agents that do this seem more concerned about making money than good service to their client. Stop it!!

I'd handle the Buyer/Seller side, the mortgage, the appraisal, the home inspection, the pest inspect and close the whole deal if I could! If you can't multi-task, real estate really ain't your bag anyway. It's not hard to look out for the interest of both buyers and sellers if you know what your doing. Things tend to go better when I handle both sides of the deal instead of the other side being handled by an agent who works part time at wally world and has a broker who is on the golf course most of the time. Not that all agents are like that. BigC

Kevin Curtis. I don't see why it is an obvious conflict of interest. Explain why you think it is so obvious. Sure, making a little extra money is nice, but I believe I offer my buyers better service than by them using another person. Again, they are free to use whoever they like, but I am usually able to offer them better rates then others are offering them. That sounds like a benefit to me, not a conflict.
And, by the way, can you please help my Eagles team out a bit and catch some balls?

I don't believe it is a conflict of interest. I show properties to my client and I provide loans as well. I think its great because I don't charge much to do the loan when I am the agent as well.

In Cali all you need is a CA Brokers License to handle both Real Estate and Loans. You just are not able to be a Real Estate Broker and a HUD approved Broker. In Cali you have to choose one.