How to Become a Dually Licensed Realtor-MLO at the Same Time. Did you know that the mortgage and real estate sectors are tightly intertwined? These sectors are both. Integral parts of the housing market, with the real estate sector dealing with buying, selling, and leasing properties.
In contrast, the mortgage sector provides the financing required to purchase these properties. In the real estate sector, realtors buy, sell, or lease properties. They offer guidance and advice to property investors throughout the buying or selling process.
Regarding the mortgage industry, the loan officer works with individuals and businesses, helping them obtain financing for real estate purchases. With that information, can it be a licensed realtor and a loan officer simultaneously? The simple answer is yes, you can! This article will tell you precisely what you need to do to have both licenses, plus what working will look like. Let’s dive in.
Rules and Regulations of Being a Dually Licensed Realtor-MLO
What are the rules and guidelines for simultaneously becoming a realtor and a loan officer? As we mentioned in the intro, it is possible to acquire both licenses; realtor and loan officer licenses.
Real estate agents can now get their mortgage loan originator licensed and work as a dually licensed realtor-MLO with Gustan Cho Associates. Why not make compensation on both ends of the transaction as a realtor and mortgage loan officer.
There is nothing in the law that prohibits you from holding multiple licenses. However, there are specific rules and guidelines that one has to follow to ensure compliance with state and federal laws and regulations.
What Entails in Becoming a Dually Licensed Realtor-MLO?
For starters, if you are a realtor looking to act as a loan officer, you must have a valid mortgage loan originator (MLO) license in their state. This requires completing pre-licensing education courses, passing a licensing exam, and undergoing a criminal background check.
In some states, one would be required to maintain ongoing education and training to keep the license. There may be restrictions on the ability of a realtor to act as a loan officer for their clients.
In some states, a realtor may not even be able to receive compensation for both the property transaction and the mortgage loan, or they may need to disclose their dual role in advance to the clients and obtain written consent.
How Does Working as a Dually Licensed Realtor-MLO Work?
How can you become a dually licensed realtor and loan officer simultaneously? You must obtain licenses in both professions to become a dually licensed realtor and loan officer. And to get the licenses, you must meet certain education and experience requirements and pass state-specific exams.
Becoming a dually licensed realtor-MLO can be very beneficial for real estate agents. You can now expand your business nationally. If you get a borrower in another state, you can pair them up with a preferred realtor partner and get your real estate referral commissioin.
Anyone who holds both licenses ought to be careful to avoid any conflict of interest and ensure that they are always acting in the best interest of their clients at all times. Another thing is that they should be aware of the regulations governing both professions.
Steps In Becoming a Dually Licensed Realtor-MLO
Here are some general steps you can follow to hold both licenses. For starters, you will need to research the licensing requirements in your current state. This is because the real estate and loan officer licensing requirements vary from state to state, with some states having restrictions on how such an individual can operate.
Mortgage clients appreciate an MLO with a better understanding of the real estate industry, especially regarding title companies and brokerages. This enhances better client relations as you offer them a more comprehensive service.
You need to know all this before you even commence obtaining the licenses. Now, you can find this information on real estate or banking websites. After thoroughly researching the state’s rules and regulations, you can complete the education requirements.
How Do You Become a Licensed Loan Officer
You must complete pre-licensing education and pass state-issued licensing exams for both licenses. These exams are state-specific and cover various topics related to the profession. You can take these courses either in-person or online. To know the required experience, you can check the requirements in your state.
Apply for your licenses – once you have passed your exams and have already gained the required experience, you can now for your licenses, which you can do through the appropriate regulatory agencies in your state.
Maintain your licenses – once you get the licenses, you will be required to take annual or semi-annual continuing education to maintain your licenses. This is because you must always remain updated on any sector changes.
What Are The Benefit of Being a Dually Licensed Realtor – MLO?
What are the benefits of holding both types of licenses? Having both real estate and mortgage officer licenses is very beneficial.
Property investors always appreciate when their real estate agent thoroughly understands the mortgage process, especially regarding interest rates, down payments, credit scores, incentives for first-time investors, and the pre-approval process.
Even though in some states, a realtor with two licenses may be restricted by state law from acting as a realtor and an MLO simultaneously to a single client, knowing will be helpful.
Benefits of Being a Dually Licensed Realtor-MLO Career Opportunity
This will undoubtedly lead to increased client loyalty and referrals. Secondly, to you individually, holding both licenses offers greater flexibility in your career. You can choose between working as a real estate agent, mortgage loan officer, or both depending on your interest and career goals.
Gain the necessary experience; there are some states where you will need to gain a certain amount of experience in either of the fields before becoming a branch manager. You will have no problem getting your NMLS mortgage loan originator license with no origination experience.
This increases income potential, as you can earn commissions or fees from property transactions or mortgage applications. Lastly, when you pursue both licenses, you can gain more knowledge and expertise in both fields. Being a dually licensed realtor-MLO professional gives you a competitive advantage.
Start Today As a Dually Licensed Realtor – MLO Careers
Holding both real estate and mortgage officer licenses is possible, and even though it comes with a few restrictions, it offers several benefits, as we have seen above.
You must ensure that you comply with all the applicable laws and regulations in your state to avoid potential conflicts of interest. It would be best to thoroughly research your state’s specific rules and regulations to understand the dual ownership of these licenses.
In addition, you will need to undertake some necessary education and pass several exams continuously, and background checks might be necessary. Obtaining both of these licenses could be a great career move, considering that you can practice whichever roles are based on your interests and get a better earning opportunity, not to mention establishing better relationships with your clients.
Would I Need Approval on Who The Managing Real Estate Broker Is To Become a Dually Licensed Realtor-MLO Professional?
Gustan Cho Associates is not involved in who your managing real estate broker is for dually licensed realtor-MLO professionals. You can be your managing broker or join a national real estate company.
We will pair you up with an experience loan officer if you will be a business development manager. You can also do the mortgage loan for your client from start to finish. We do not push you to one or another. We give you support on how you practice being a dually licensed realtor-MLO.
Being a dually licensed realtor-MLO enables you to offer better advice and guidance to your clients. There is also the possibility of identifying opportunities for cross-selling and other value-added services. For more information about becoming a dually licensed real estate agent and mortgage loan originator at the same time, please get in touch with us at Gustan Cho Associates at 262-627=1965. Text us for a faster response. Or email us at gcho@gustancho.com.