When must licensed real estate brokers and salespersons obtain one of the mortgage banking licenses?
If a real estate broker and his or her salespeople find loans or complete loan applications and receive a fee or anything of value for that service separate from the real estate commission described in the agency employment contract, they will be required to register as “mortgage brokers” or “loan originators.” If a real estate broker originates, sells or services mortgage loans or land contracts, or provides escrow services, the real estate broker must be registered as a “mortgage banker.” Any of the real estate broker’s salespeople who participate in these activities must also be registered.
