Question about working for a lender

kan210 · Joined: 24 Nov 2006 Posts: 5

Can you work for two lenders at the same time or is that a RESPA violation.

Mac · Joined: 04 Feb 2005 Posts: 276 Location: Knightdale, NC

Not a RESPA violation but HUD would have a problem with it if either company is approved to do FHA.

The individual brokers would probably have a problem with it as well.

I know that the state of North Carolina, and I'm sure there are other states too, does not allow an L/O to work for companies at the same time. They are very specific in that regard.

The bigger question stands at "why would you do that anyway?"

direct · Joined: 25 Nov 2006 Posts: 5

We have an individual who works for (2) lending companies: one is a direct lender that only deals with prime borrowers and the second is or brokerage firm that specializes in alt-A and subprime. He achieves a much higher rebate from the direct lender on the prime products however most of his business is alt-A therefore it come to us. We dont mind because loan officers are hard to control. In this business its a revolving door, especially in Califorina where everyone holds the title, "loan officer".

However, if he/she is DRE licensed then HUD and RESPA will have a problem. We dont have any issues because we are licensed by the Department of Corporations in California and get the other brokers writtne approval.

chow · Posted: Sun Nov 26, 2006 11:24 pm Post subject:

Kan210,

I have a good friend who is a attorney in CA. You might want to run this by him. There are several ways to work in this industry, and some of them "AINT" the best way to keep you from visiting "Campo De Federal".

His website is www.lendinglaw.com

Tell Uncle Herman we all said "howdy"