Can Realtors Become MLO at the Same Time?
One of the frequently asked questions at Gustan Cho Associates is can realtors become MLO at the same time? Real estate and mortgage lending are two closely related industries, and professionals are not uncommon to be involved in both.
Realtors help buyers and sellers with property transactions, while Mortgage Loan Originators (MLOs) facilitate the mortgage financing process. In this blog, we’ll explore the possibility of Realtors becoming MLOs and the considerations involved.
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Can Realtors Become MLO at the Same Time?
Understanding the Roles:
Before delving into the idea of combining these roles, let’s understand what Realtors and MLOs do:
- Realtors: Realtors are licensed professionals who help clients buy or sell real estate. They assist in property transactions, market analysis, negotiations, and paperwork related to buying or selling homes. Realtors typically work on a commission basis.
- Mortgage Loan Originators (MLOs): MLOs assist individuals in obtaining mortgage loans. They assess applicants’ financial situations, help them choose suitable loan products, collect necessary documentation, and guide them through the loan application process. MLOs may work for banks, mortgage companies, or as independent brokers.
Licensing Requirements:
In the United States, both Realtors and MLOs require specific licenses to practice legally:
- Realtor License: To become a Realtor, individuals must acquire a real estate license, a process that entails completing required coursework, passing an exam, and meeting state-specific requirements. Realtors must also adhere to a code of ethics and are typically National Association of Realtors (NAR) members.
- MLO License: Mortgage Loan Originators also need to be licensed. This includes completing pre-licensing education, passing the SAFE Mortgage Loan Originator Test, undergoing a background check, and meeting state and federal licensing requirements.
So, can realtors become MLO at the same time? The answer is generally yes; it’s possible to be both a Realtor and an MLO. However, there are essential considerations to keep in mind:
- Conflict of Interest: Balancing both roles can create conflicts of interest. Realtors are entrusted with a fiduciary responsibility to their clients, and MLOs must act in the best interest of loan applicants. These responsibilities can sometimes clash.
- Disclosure: Being transparent with clients about your dual roles is crucial. Disclose your MLO activities to real estate clients and vice versa so they know your involvement in both aspects of the transaction.
- Licensing and Regulation: Comply with both roles’ licensing and regulatory requirements. Stay informed about changes in real estate and mortgage lending laws and regulations.
- Time Management: Managing both professions can be demanding. Effective time management is essential to handle the responsibilities of both roles efficiently.
While Realtors become MLO at the same time, it’s essential to approach this dual role with caution and integrity.
Disclosure, adherence to licensing requirements, and a clear understanding of potential conflicts of interest are crucial for success in both professions. With proper planning and dedication, individuals can successfully navigate the worlds of real estate and mortgage lending simultaneously.
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Benefits of Realtors become MLO at the same time:
Combining the roles of Realtor and Mortgage Loan Originator (MLO) can offer several potential benefits. However, it’s important to approach this dual role with care. Here are some advantages:
- Comprehensive Service: By serving as a Realtor and MLO, you can provide a more comprehensive service to your clients. You can assist them in finding the right property and securing the necessary financing, streamlining the home-buying process.
- Better Understanding: Having real estate and mortgage lending expertise allows you to have a deeper understanding of the entire home-buying process. This can be particularly helpful in explaining complex concepts to clients and guiding them through potential challenges.
- Increased Income Potential: Earning commissions from real estate transactions and mortgage lending can lead to higher income potential. Diversifying your income sources can lead to increased earnings from each client
- Client Convenience: Clients may find it convenient to work with a professional who can handle both the home search and the mortgage application. This can save them time and simplify the process.
- Networking Opportunities: Being involved in both industries can expand your professional network. You can establish connections with real estate professionals, lenders, and other professionals, which may lead to more referrals and business opportunities.
- Adaptability: In fluctuating market conditions, having real estate and lending skills can make you more adaptable. You can pivot between roles as market conditions change.
- Independence: You have greater control over your business if you work as an independent broker or agent. Combining both roles can allow you to diversify and manage your own business independently.
While there are benefits of Realtors become MLO at the same time, it’s important to remember that it comes with challenges and potential conflicts of interest.
Proper disclosure, adherence to licensing requirements, and a commitment to ethical practices are essential to navigate this dual role successfully. Additionally, it’s crucial to stay informed about changes in laws and regulations in both industries to ensure compliance.
Dino Hasapis is an example of Realtors become MLO at the same time. He is an Illinois Real Estate Agent and is The Realtor Of Choice at Gustan Cho Associates: Here Is Illinois Realtor Dino Hasapis’s Story on Why He Entered The Real Estate Profession And Why He Is The Best Of The Best In his Field
Like many other people, I got into real estate when the market was booming in the early 2000s. I began in commercial real estate and after the market turned in 2008, my husband, a real estate attorney, began assisting his real estate clients in other areas of law such as bankruptcy.
As he became more involved in this area, he needed help and I jumped in. I began working with a different type of client and became more involved in short sales. I enjoyed the complexities of the transactions and helping people rebuild their lives. I gave hope where hope was needed and usually found a way in the strangest of circumstances to satisfy all parties.
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Growth Of Real Estate Business
As the business grew and I analyzed the future of the real estate business I began to think there must be a better way to service clients and save them money. With buyers and sellers having more access to information via the internet than ever before, value as an agent has changed.
We no longer hold all the information on which properties are for sale, their specifications, and competition. Most of it, although not always accurate, is readily available online. As I pondered how to add value and researched market projections lowering cost became a part of the value.
Representing Her Home Buyers
If I could provide more value at a lower cost that allowed people to take control of their own destinies with guidance, could that be the answer? If I could offer a “do it yourself” type of approach but provide the tools people needed, this could be the wave of the future.
I look forward to guiding you through the buying and selling process and passing my experiences and knowledge on to you to empower you to close a successful real estate transaction as well as save you money.
However, if you have no interest in learning a do-it-yourself type approach and just looking for information, I hope this book will serve you well.
Illinois Real Estate Agent
Dino Hasapis specializes in the resale of residential properties in the distressed and luxury markets. He has extensive experience in working directly with buyers and sellers in the acquisition and disposition of their properties. Additionally, he works closely with asset managers, sellers, and foreclosure defense attorneys for single and multi-family properties placed in foreclosure.
He has closed over $315 Million in commercial and residential real estate transactions and has negotiation experience in working with several lenders such as Fannie Mae, Bank of America, CitiMortgage, Wells Fargo, HUD, and Chase.
Dino began his education at Illinois State University graduating in 1996 and then participated in Harvard Business School’s Management Certification Program. Dino Hasapis is a certified specialist in REO & bank owned properties and currently resides in the Midwest with her husband and four children.
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Frequently Asked Questions (FAQs)
- Can realtors also work as Mortgage Loan Originators (MLOs)?
Yes, realtors can become licensed Mortgage Loan Originators (MLOs) and simultaneously engage in real estate sales and mortgage lending activities. - What are the benefits of being both a realtor and an MLO?
Being both a realtor and an MLO allows individuals to offer their clients a broader range of services, potentially increasing their potential and providing a more comprehensive service experience. - What qualifications are required to become an MLO?
To become an MLO, individuals must complete pre-licensing education courses, successfully complete a national and state-specific licensing examination, undergo a background check, and fulfill additional state-specific prerequisites. - Do realtors need additional training to become MLOs?
Yes, realtors interested in becoming MLOs must complete pre-licensing education courses on mortgage lending and pass the corresponding licensing exams. - Is there a conflict of interest in being both a realtor and an MLO?
While there is potential for conflicts of interest, such as steering clients towards specific lenders or properties, realtors who are also MLOs are generally required to disclose their dual roles to clients and follow ethical guidelines and comply with regulatory requirements. - Do realtors need separate licenses to work as MLOs?
Realtors interested in working as MLOs must obtain separate MLO and real estate licenses. Licensing requirements vary by state. - Can realtors earn commissions from both real estate transactions and mortgage lending?
Yes, realtors who are also MLOs can earn commissions from real estate sales and mortgage lending activities, provided they comply with applicable laws and regulations governing compensation disclosure. - How does being both a realtor and an MLO benefit clients?
Clients may benefit from working with a realtor who is also an MLO by receiving comprehensive guidance throughout the home buying process, including assistance with real estate transactions and mortgage financing. - Are there any limitations on advertising or marketing for realtors who are also MLOs?
Yes, realtors who are also MLOs must ensure that their advertising and marketing efforts align with regulations and guidelines created by the real estate licensing authority and the regulatory body overseeing mortgage lending. - What should realtors consider before becoming MLOs?
Realtors considering becoming MLOs should carefully review the licensing requirements, consider any potential conflicts of interest, and ensure they have the necessary time and resources to effectively meet the demands of both roles.
Gustan Cho Associates fully endorses Illinois Real Estate Agent Dino Hasapis. Dino is a Chicago Area native and knows the Chicagoland Area and its surrounding suburbs like his knows her backyard. Dino is also an associate contributing editor for Gustan Cho Associates Mortgage Resource Center and we are fortunate for him to keep our viewers updated on the latest real estate news in the following counties of Illinois: Cook County, Will County, Lake County, McHenry County, DuPage County, and Kane County.
I have worked with Dino Hasapis on countless deals together and he is always a pleasure to work with Dino is available 7 days a week. Having his best friend from childhood Alex Carlucci of Gustan Cho Associates is a major benefit of having Dino Hasapis as your real estate agent.
You can also contact us at Gustan Cho Associates by calling us at (800) 900-8569 or text us for a faster response. You can also email us at gcho@gustancho.com or alex@gustancho.com. Our expert Loan Officers are available even during weekends and holidays!
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