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Can a real estate broker own a mortgage company
Can a real estate broker own a mortgage company?
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1 Reply
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Yes, but there are some important rules and guidelines that the real estate broker must follow:
Licenses
Real Estate Broker License: For this person to operate legally as a broker in a certain state of America, they should have obtained valid permission from an authorized government body.
Mortgage Broker/Loan Originator License: The same individual must apply for company ownership. This involves being approved as either a mortgage lender or loan originator. This is after sitting for exams on pre-licensing education and passing them all according to state standards set forth by regulators across America.
Observe State And Federal Regulations
Dual Licensing Compliance: Some states may require specific things regarding someone having two licenses. Examples include those covering real estate salespeople and mortgage brokers. These laws tend mostly to prevent conflicts among interests while ensuring maximum transparency toward clients served through these professionals.
RESPA (Real Estate Settlement Procedures Act): It is illegal for any broker involved in property deals like buying houses to disclose relationships between them. Also, their lenders receive kickbacks from such financiers without fully disclosing everything concerning that transaction. This includes showing written evidence thereof if need be. So, ownership should also be shown where necessary, but only if one owns this industry.