Quite often we are asked if a licesee can participate in a loan commission.
The answer is absolutely!, maybe.
With a valid R.E. Broker’slicense, & the property is not a 1-4 residential, the answer is how much do you want & can I keep at least a meager amount to buy fuel for the yacht?
With a Salesperson’s license, as long as the check is written to your broker of record, the only difference is how much more I keep for gas for the company plane.
A single family (1-4) is a whole different kettle of fish. RESPA (Real Estate Settlement Procedures Act) mandates that in order to participate in the commission earned, you must perform some or all of 14 services normally performed in the origination of a loan. In the interest of brevity, call & I’ll be happy to send you the whole enchilada.
Additionally, on the 1-4s there’s a very good chance you may need an additional license from the federal government which entails an unbelievable amount of education, reporting, & quite probably more hassle than it’s worth unless you are deeply involved in the conventional lending market.
There is a possible out of this quagmire which has to do with the purpose of the loan. If it is not for consumer purposes, you may be home free.
So there ya go. My best suggestion is to call prior to creating a pickle for yourself.
