Is Realtor/LO Combo a no-no?

Downriver Brian · Joined: 23 Dec 2006 Posts: 1

I'm a Realtor in the Detroit Metro Area. With the auto industry the way it is, things are rather rough right now and now my family is in a bit of a financial pinch.

A friend of mine owns a net branch and does very well with about 6 people under him. They don't work hard or consistent and he is rather frustrated about that. Told me he wants me to come over and work that side of the business...even if only part time. He SWEARS I'll eventually drop Real Estate and focus on mortgages.

I'm thinking of doing so. Seems like it would expand the possibilities I have. A lot of the purchases I put together this year I might have been able to put the loans together on as well which would have doubled my income, give me more control over the deal as a whole, streamlined my communication with the client...etc.

However I read somewhere that doing mortgages as a Realtor is a no-no. Or maybe it was just doing FHA loans as a Realtor.

Anyway, can anyone shed some light on what I would need to consider when venturing into the mortgage business from the Realtor side?

Know anyone that has done this with success? (success meaning earning $85k gross p/year with both the realtor and lo side combined)

chow · Posted: Sun Dec 24, 2006 9:47 am Post subject:

FHA will not allow a person to work for two different companies at the same time. (unless the other company has the person flipping hamburgers or something not real estate related.)

In Michigan you have to have a real estate license to write a commercial mortgage. Some states require that you have a real estate license to write any mortgage. I would have the company would have put together a controlled business arrangement disclosure, and then explore any other state issues.

MORTGAGEHUNTER · Joined: 16 Jul 2007 Posts: 1

AFTER 13 YEARS IN THE MORTGAGE FINANCE BUSINESS I'VE NOTICED THAT MOST AND I MEAN MOST REALTORS ARE IGNORANT TO FINANCE. REALTORS ONLY WANT TO KNOW WHEN ARE WE CLOSING. REALTORS DON'T UNDERSTAND THE THE PROCESS OF A MORTGAGE LOAN. I'VE ALWAYS QUESTIONED THE ATTITUDE OF REALTORS WHEN THEY SAY " IT'S MY JOB TO GET MY CLIENT THE BEST DEAL WHEN IT COMES TO FINANCE". THEY MUST TEACH THIS IN THAT SILLY SCHOOL THEY GO TO. THIS IS IMPOSSIBLE BECAUSE THE REALTOR DOESN'T KNOW THE CLIENT'S CREDIT RATING, DOESN'T KNOW RISK BASED PRICING. REALTORS ASSUME THAT ALL CLIENTS HAVE CONFORMING CREDIT WHICH IS NOT THE CASE. IT'S CRAZY THAT PEOPLE PUT THEIR BIGGEST ASSET IN MOST CASES IN THE HANDS OF REALTORS. MOST REALTORS DON'T HAVE ANY FORM OF FORMAL EDUCATION, THATS WHY EVERYONE WANTS TO BE A REALTOR. YOU DON'T HAVE TO KNOW MUCH UNLESS YOU INCLUDE THAT SCHOOL THEY GO TO THAT ANYONE CAN PASS. REALTOR INDUSTRY NEEDS TO BE MORE REGULATED. I SAY LET THE REALTOR OPEN THE DOOR AND LET THE CUSTOMER LOOK INTO THE HOUSE AND LEAVE THE FINANCE UP TO PEOPLE THAT UNDERSTAND IT. THERE ARE MANY SYSTEMS GETTING IN PLACE TO DO AWAY WITH REALTORS IN GENERAL. REALTOR'S SERVICE IS NOT WORTH 6%, NOT EVEN CLOSE, CONSIDERING LESS THAT 1% OF CUSTOMERS ARE HAPPY WITH THE SERVICE PROVIDED BY THEIR REALTOR. ANYONE IN MORTGAGE FINANCE KNOWS WHAT I'M TALING ABOUT WHEN IT COMES TO REALTORS AND THE IGNORANCE THAT THEY BRING TO THE TABLE.