Do you think agents should also be the lender??? NOT!

Education & Training with Real Estate Expert Witness Support

I know there is a big push for agents to also do their own loans with the argument,  ............Why give someone else the loan commission,  when it is your client.  This argument is illogical.  Why don't you do your own roof inspections.  Or what about Pest Control repairs? 

To do either job takes time,  experience and a certain amount of people skills.  If you try to split these duties, you will never become good enough at either to be an A player.  I know 1000's of agents,  many of them top producers.  NONE,  let me repeat,  NONE of them do their own loans. I also know some top retail loan agents.  None of them do real estate.

Now,  I have met several retail lenders who decide that they should do the real estate transaction because the buyer called them first about a loan.  Again,  I don't think you are serving your client.

The NAR code of Ethics addresses this by suggesting that agents should not engage in work that they are not qualified for.  Typically,  this means that residential agents should try to broker a Business OP,  or sell raw land.  But,  I think it also applies to the Lender/Agent phenom. 

What do you think??

Posted by


Guy Berry

Email -

Visit my Website  

Connect on Facebook



Comments (6)

Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi, GUY,   i've thought about this and finally believe that in some instances it would be o.k.  But in more cases I'm bettting there would be a huge temptation to cut some corners or " make the numbers work !" 

Jun 05, 2008 08:44 AM
Dawn O'Neal - Realty World Executive Advantage, San Jose, Ca.

This has always been my pet peeve.  I feel this is a conflict of interest and an individual can do one or the other job well - NOT both.  I have had transactions with agents that are also representing their clients on the loan and when asked what the status is, they have to defer to another because they do not have the slightest idea what is going on.  Not a strong position nor in a Client's best interest, they do not serve it well.  If REALTORS want to keep the banks out of real estate, they should keep out of the banks business!  I really feel we need more regulation in the lending industry to eliminate this crossover from being so easy to do and creating a "market"that we are all trying to clean up now after many of these greedy agents swept through and left a trail of mayhem.

Jun 05, 2008 09:29 AM
Ron Tarvin
Residential, Investment properties, rehab projects, property management, luxury homes, new construction! - Katy, TX
Broker, Katy, Houston, Cypress 77450,77494,77095

I've never really thought it could be done in a completely legitimate way.  I HAVE thought about taking the mortgage licensing classes though so that I can be well versed on lending and be able to see when things are not 100% right for my buyer.

Jun 06, 2008 02:18 PM
Jamie Flournoy
got agent? - New Market, MD
The Realtor on Your Side


I've always questioned this practice.  Again, we have agents/mortgage brokers who are so interested in "double dipping" and earning as much as they can from the client, all the while they're totally turning their backs on "what's in the best interest of their client".  No wonder much of the general public has such a low opinion of what we do for a living.  Wouldn't it be something if we could really begin to hold agents to a higher standard and not just count on them to do it on their own???

Jamie Flournoy, Broker with Assist-2-Sell, San Jose, CA


Jun 12, 2008 03:50 AM
Guy Berry
Real Estate Expert Witness Support - San Jose, CA
Real Estate Broker and Legal Expert

Again,  you are right on track.  This is why I am such a big fan of the Grievance process.  A little bit of work but if more agents filed on bad agents,  we could make a big difference

Jun 12, 2008 06:35 AM
Angele Price, Coldwell Banker-Los Gatos

Hello Guy,

You really hit the nail on the head with this one.  It is a huge red flag if the agent is doing the loan. And given the shakey state of lending these days, why would anyone want to gamble on a part-time broker?


Jun 23, 2008 06:39 AM