I know for a fact there is no law stating you cannot be a LO and a Realtor. I have been told by many agents, brokers, and lenders that you cannot but have done research and found it is simply not true. In fact, I just became a broker and in my last office the mangaging broker was a lender.
The only rule I have actually read definitively from a reputable source is that you cannot originate an FHA loan where you are also a buyers agent.
Can anyone who really knows (not just 'heard through the grapevine') tell me what are the actual legalities and logistics of lending and selling?
Here is what I had in mind for my future business plan.
- I become a LO.
- I continue to seek listings and work for sellers.
- I farm out all buyers to buyer agents and try my best to close the loans. I receive a split of the commission as the broker.
Obviously - RESPA would prevent me from paying fees to the agents or 'forcing' buyers to use my mortgage company. I would need an Affiliated Business Arrangement signed. Apart from that are there actual laws saying I can't do this?
I 'believe' this is how my former broker operated.