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How many hats do you wear? Are you both a loan officer and a realtor?

By
Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

 

are you a loan officer and a realtor? Wearing many hates?

DISCLAIMER : This topic might tick off some of those that do play both roles, who are a loan officer and a realtor. Sorry, but I have a problem with this. Just hard core mortgage related facts.

 

So, how many hats do you wear?  Sure, I wear many hats as a loan officer, but in my opinion, it's all part of my job. What about those that are actually a loan officer and a realtor though? How many more hats do they need to wear?  Sure, if you are one of those that do both, I am sure you think you do a good job for your clients. But is this just your opinion? And is good good enough?  I try for excellent and feel that it's hard to hit that mark if you are both. And keep in mind, this is just my opinion.

 

 

 

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I am sure that these same people that are both a loan officer and a realtor will say that they have your best interests at hand. Their reasons would be :

  • I am not charging you as much, since I am your realtor and loan officer. But define not as much.  And could it cost you more in the long run?
  • I have been doing mortgages and real estate for 10 years.  Okay, is this together, combined in years?  Have you been a realtor for 9 years and a loan officer for just one year? More on this later.
  • "I will guarantee you satisfaction." Well, anyone that knows me, I hate such words and phrases as :  "I guarantee" "I promise" "no problem," "Don't worry" "trust me" "I have your best interest at hand" etc, etc. Even though I know I am very good at what I do and know that I can get you a mortgage, I don't like using these phrases. Yes, they calm the borrowers nerves, but I view it usually as a good sales tactic.

 

 

 

Here is how come I can make my opinions. I can base them on past examples and on comments from other individuals that say they are both a realtor and a loan officer.

I wrote this blog a while back. FHA loans vs Conventional Loans, a real comparison with 5% down  I was attacked by like 3 loan officers in this blog, telling me that I was way off on my conventional rate example. They either told me that they were both a realtor and a loan officer or I found out after doing some research. What was ironic was that I asked each one of them if they knew how to read a rate sheet and see that there is a major pricing hit for lower credit scores. And that this is not a lender hit, but a FANNIE MAE pricing hit. Only one got back to me and said that he spoke to another loan officer and still told me that I was wrong.Just because someone else confirmed your thoughts, doesn't always mean that it's correct. Hence why I ended up writing about this. Two wrongs don't make a right, or do they?

And the funny thing, yet a sad thing, these same people that tell me that I am wrong are usually both a loan officer and a realtor.

 

 

 

passion - having a heartI will say this....   no matter how good you are in the beginning, you do usually become better with more years of experience. But just because you have been doing something for 10 years, doesn't always make that person very good or better. Example - I closed a loan last year that another loan officer had for 30 days, yet he couldn't make the settlement date. He was still working on it when we closed it in 5 business days. There were credit issues that needed to be taken care of. But this was a loan officer that told the borrower that he had been doing mortgages for 30 years. See my point?  Age doesn't always make it better or you better.

Passion and having a large heart. - Now, I know many of us have a large heart and passion for what we do. I know I do...  but just because you are nice, doesn't mean that you are good at what you do. Sorry, but it's just a fact of life.

 

 


Conclusion : Let me pose one question to you.  Would you want a heart surgeon who specializes in this, to operate on your brain, just because they are a "surgeon" and or went to medical school? What about a realtor who says, well, "I was trained as a loan officer also." The better loan officers and realtors that I know and respect, wouldn't do both. Sure, conflict of interest in my opinion. But it's hard to stay on top of just the mortgage industry alone.  Just food for thought and based on my opinions.

 

PS....  I know we are in a very tough economy. I know many loan officers and realtors that have gotten second jobs. But as a realtor and a loan officer?  In my opinion, this is like mixing gasoline with fire. You could just be waiting for an explosion and that explosion could be your mortgage not closing or closing on time.

 

 

 

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Copyright © 2009 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Comments (31)

Roland Woodworth
Blue Cord Realty - Clarksville, TN
Blue Cord Realty

Jeff: I have to agree with you on this one. There are some in our market who do both. First, is it good for the consumer. Second, their is also huge liability here as well.

Aug 20, 2009 01:23 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

LISA... . I am an expert in so many things.... lol  Seriously, I agree with that quote... and I am not saying that this could be done, to be an expert in both.. but in my opinion, it would be highly unlikely.

TIM & PAM.... . I think many of us would agree that there would be a conflict of interest.  As I told someone else, that I see this take place more often in Florida. That in itself scares me in a way.  And wondering if it did hurt the state some, because of this.

ROLAND.... . and what, disagree with me on my other issues?  lol  Seriously, I agree with the same statements that many others have stated.  Thanks

 

Aug 20, 2009 01:56 PM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

I would never do this. 

I was invited to originate a few years ago. 

Are you kidding me ?

First of all I respect loan offers who do what they do, and let them do it. 

 

Aug 20, 2009 02:21 PM
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

I have a real simple question for those that 'try' to do both.....

 

"Which one do you think you are good at?"

 

Usually.... those that 'try' to do both aren't good at either.......

 

Even those that call themselves "Top Realtor/Lender in my market... blah, blah, blah, puke"

 

Aug 20, 2009 02:38 PM
Sal Poliandro - Helping People Win
RE/MAX Properties - Ridgewood, NJ
Broker Associate

Hi Jeff,

   Great post. I have been asked to get my mortgage and title licenses. My rule is do one thing and do it well.

Aug 20, 2009 04:58 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

MISSY... . never say never... lol  Seriously, I understand why some do it.  But to say that you can do both very well?  Besides, to me, it's a conflict of interest.

TOM.... . I agree with your statements. What do you think about comment #7?  It's not truly about having 2 jobs.... it's two jobs close to the same industry. At least this is my opinion.

SAL.... . it's good that you stuck with your guns on this one.  And thanks for the compliment.

 

Aug 20, 2009 05:26 PM
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

Jeff - Im not sure its exactly like mixing gasoline and fire, but I agree with your point. I think you should stick with your PROFESSION and try not to wear so many hats. We talk about people having a 'Niche' to be more successful. Well, being a Realtor AND LO is not a niche. Better to be an expert in one thing, than to try and do everything. That just leaves room for error. Good examples.

Aug 20, 2009 05:32 PM
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Jeff,

I have an INACTIVE Realtor's license.  I appreciate my REALTORS, and wanted to "walk in their shoes" so to speak, but I don't sell real estate.  I am up on the Commissioner's rules in Arizona, though.  And legal issues, and Fair Housing issues, etc.

I don't know how I'd find the time or energy to do both things well.  You won't ever find me trying to do both!  I'm a lender.

Mike in Tucson

Aug 20, 2009 09:48 PM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Belonger - I've never been a Realtor.  I once had a rep from a wholesale lender who is now out of business come in and say, "We do everything!  Subprime, Alt-A, Conventional, Government Loans, etc."  We whispered amongst ourselvesthe old philosophy of those who do everything, do nothing in particular very well.  I can't even fathom wearing both hats, never mind the rumor that it heightens the balding process.

Aug 21, 2009 02:00 AM
John Neil
Bank of Utah - Logan, UT

Different people have approached me about dabbling in other businesses (e.g insurance, real estate, etc.). Every time I tell them, It's hard enough to stay on top of all the changes in the mortgage industry and I would be doing my mortgage clients a disservice if I did something else. I've always felt that the Realtors/Loan Officers should pick one and become an expert at it. I have never heard of a Realtor/Loan Officer that is excellent at both. Usually they are just mediocre at both.

For the same reason I've always felt that the singers should stay away from acting (e.g. Mariah Carey in Glitter...worst movie ever!!). Except for Barbara Streisand...She can do it all!

 

Aug 21, 2009 02:09 AM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Jeff: I'm going to simplify here. How can a person be effective when they're concentrating on two entirely different professions? I would argue a person who is both devotes 50% effort to each. We all know the best LO's and realtors focus on one thing only. There's a young guy in my office. I think he has both his licenses. Needless to say, he is rarely there and his production shows. Thanks. I agree with you!

Aug 21, 2009 03:11 AM
Tim Bradford
Cleveland, OH
NMLS 250013

Anyone have a comment on this. 

Just had a call from a Realtor that I deal with regularly.   Another Realtor that has an AfBA with a Lender and my friend were both competing on a listing.  The other Realtor got the listing at about 15-20% higher than my Realtor friend was willing to list the property.   Does this sound like the other agent BOUGHT THE LISTING?  

Now to make things better, we just heard that this property sold for the FULL LISTING PRICE.   The Listing Realtor is not concerned because the buyer is using their AfBA Mortgage company, so because the are affiliated and have a vested interest in seeing this transaction completed they do not see a problem with the appraisal.  

I would be interested in the comments of any buyer that read this post and your opinion of your Realtor wearing (or sharing) the same hat as your lender.   Are they working in your best interest.

Aug 21, 2009 03:47 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Wasn't this why NAR worked very hard to keep banks out of Real estate? To keep the funding and the selling separate so that there was not a chance of buyers being badly treated.

Aug 21, 2009 08:02 AM
Jay-Paul Lowry
Riverside, CA

Jeff - Even worse is the realtor who argues that their experience selling real estate and being involved x number of transactions with loans makes them mortgage experts. Every time I hear this i just want to laugh, is their ego really that hungry for attention? Great post.

 

JP Lowry--President--Preferred Financial Funding, Inc

Aug 21, 2009 08:18 AM
Tim Bradford
Cleveland, OH
NMLS 250013

Nick and Trudy,  I believe you are correct that the NAR was against Banks owning Real Estate Companies.  And it appears to have succeeded, MAYBE.   Consider the number of AfBA's that have been established by Realtors (and Lenders).   Does it strike you funny that "WE DON'T WANT THEM IN OUR BUSINESS, BUT WE WANT A SHARE OF THEIR BUSINESS". 

Also, look at Home Builders that fault against HUD revised Definition of "Required Use".  In the end I believe they succeeded in the older definition, that permitted them to do business as usual. 

In an earlier post on this blog, I said "ITS NOT ABOUT THE MONEY".   With the comments I have seen, maybe I should "FOLLOW THE MONEY" to see if there might be some significance to who makes money because of the efforts and actions. 

Aug 21, 2009 09:37 AM
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

A couple of years ago and mortgage broker approached me about being a lender also.  Not a chance.  I have too much to learn on a daily basis in real estate, and representing clients is a full time job now.  I could not wear both hats and be comfy with it.

Aug 21, 2009 11:41 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

JOHN C. .... . lol... well, I think it could be. What happens if the so called realtor/loan officer really really messes up? That they promised a 20% down conventional loan at 5.5% costing 1 pt.  But they didn't factor the 625 credit score correctly. That rate could now be 5.875% and costing 3 1/2 pts, depending the loan amount, because of the profit margin.  This could then be the gasoline on fire scenario.  ;o) 

In regards to your niche comment... I agree 110%..  being a realtor and a loan officer is not a niche.  thanks

 

MIKE.... . well, I don't need to walk in anyone's shoes, because being a loan officer is tough enough. And I have a decent idea what realtors go through, just from watching them and speaking to them. I don't think you need a license to stay up on specific topics.  But I do understand what you are saying. I new some loan officers in the mid 90's that had their real estate licenses, hang them in a specific office, so if they got a deal, they would give it to that broker and make some extra money. But wait...  why not just give it to a realtor as a referral, to keep your referral partners happy???  This to me was common sense and those that were a loan officer and hung their real estate license...  they are now out of business.

JASON.... . I remember you telling me about this specific person.  Hey, a company that is a wholesale company, that does many things.  A very good rep. could handle this. But in your case, when they couldn't even handle subprime good, when that's all they did... and now do more. I agree with you.  thanks

 

JOHN N. .... . you made this statement.. "It's hard enough to stay on top of all the changes in the mortgage industry and I would be doing my mortgage clients a disservice if I did something else."

Bingo and I agree 110%....especially about the part, doing your clients a disservice. And I love your examples... and you hit on a key note... there will always be someone that could do both well, but let's define well, good, etc, etc.  I want to be the best of the best.  That I can't see happening. thanks

PAUL..... . you hit a nail on the head... his production is down.  I would have to assume that he is hoping to make more money, because if he can get a client as a realtor, now he can sell his services as a loan officer. But he can't concentrate his marketing efforts on one thing...thanks for sharing

 

 

Aug 22, 2009 10:43 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

TIM.... . the listing agent got the buyer to buy their property?  Is this realtor a dual agent on the property? I wrote about dual agency, as a dual agent, are you a secret agent?

In any case, you bring up an excellent point. Does this realtor have their clients best interests at hand?  Just trying to get a higher commission? I was hoping some more realtors would have chimed in.  thanks

 

NICK & TRUDY... . yes, the main reason why.  But you still have companies like Weichert and Prudential that have their own in-house lending. Many of these loan officers are average or good, but it would be rare that they are great..  but they get the client thinking that they will get the best deal, one stop shopping.  And I just took two deals away from these situations. One of them, the loan officer was charging a higher rate and higher costs.  But what hurts these clients because of this system, is that loan officers will cherry pick... and not always work on that very tough deal, because they are getting more business than they can usually handle. Just my opinion on this.

JP.... .  excellent point... and these loan officers that usually argue with me on this, that are realtors also, can't price loans correctly.  Just as the example in my blog above, when I did that FHA vs conventional comparison.  Thanks

TIM.... . NAR succeeded?  What about allowing the Weicherts of the world to have their own mortgage company?  I know it kept banks from buying up real estate companies... but did it?  What about companies such as GMAC, that got into real estate?  Just food for thought and curious on this topic.  thanks

KRIS... . I agree, I just don't see how I could be the best of the best if I had to wear another hat and learn something totally different... more rules, laws, and guidelines.  thanks for this feedback.

 

Aug 22, 2009 10:59 AM
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Jeff - Interesting post and insightful comments.  I have had mortgage people come to me and ask me if I wanted to originate mortgages because I do a lot of business.  I said I was not interested.... too risky.  Further, it just does not feel right.  We have a new recruit coming aboard to our office who used to do mortgages (actually 2 of them) and both agreed that they would not do a purchase transaction and be the loan officer at the same time.  How many folks actually do this practice ? 

Aug 23, 2009 12:52 AM
Patrick Randles
Nova Home Loans - Tucson, AZ

I think having the knowledge that comes with a real estate license is beneficial, I just can't see anyone taking me seriously as the realtor and peddling the loan as well...

Aug 29, 2009 05:16 AM