Are Realtors required to obtain mortgage loan originator licenses to negotiate terms re: short sales?

By
Mortgage and Lending with First Colorado Lending

If the Realtor is "negotiating" with the lender, then it could be yes, probably will need to be licensed as an MLO and their company as a mortgage broker.

As a general guide, if someone is discussing the terms of mortgage financing with a consumer for the purpose of obtaining a loan for them or to acquire/retain a borrower for a lender, it is a licensed activity. Some states expand this to include advertising, and not just one on one conversations.

Thoughts?

 

Michael S. Richardson

Director/Mortgage Fraud Services

www.mortgagefraudsolutions.com

Author of "An American Epidemic, Mortgage Fraud a Serious Business"

Read more @ Mortgage Examiner's Articles

Follow me on Twitter "FocusonFraud"

 

Comments (3)

Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

I don't follow your reasoning on this one. So the attorney who negotiates should have a mortgage license as well?

May 07, 2010 03:45 AM
David Obbee
Obbee.com - Agoura Hills, CA

Michael: Good post, thanks for sharing.  The landscape seems to change all the time on this, but the trend seems to be tighter restrictions.  In California, for example, realtors and attorneys have generally been exempt, but between the DRE and the Attorney General, it's a bit dicey nowadays.  I think as long as the realtor is not charging money specifically to negotiate, that makes a (helpful) big difference, if there's any question on the issue.  But different states have so many opinions- in some you need to be licensed as a realtor, attorney, mortgage broker, credit services organization- even a collection agency (Idaho).  Kind of a mess!

May 07, 2010 03:49 AM
Michael Richardson
First Colorado Lending - Golden, CO
First Colorado Lending

I was not including Attorneys, if the Real Rstate Agent is "negotiating" with the lender directly will they need to be licensed as an MLO and their company as a mortgage broker?

If someone is discussing the terms of mortgage financing with a consumer for the purpose of obtaining a loan for them or to acquire/retain a borrower for a lender, it is generally has been a licensed activity.

May 07, 2010 05:54 AM