Realtor’s CAN do loans; Subprime is back; Real Estate is hot. Those are some good headlines.

Written by Michael A. Foote, CMB on . Posted in Uncategorized

Full credit to Rob Chrisman   So it is an age old question, much like, What is meaning of life? What is Stonehenge? Do bears %^** in the woods?  Can a Realtor originate loans. It would appear in this article that the answer is YES!! If…. Point of fact, I am a mortgage broker and not an approved FHA lender. So if you are thinking about originating loans, AND you are a Realtor Broker – I want to talk with you!! 
Sometimes I am asked, “Can I work for a lender as a loan officer and as a realtor for another company at the same time?” or, “Can a loan officer of a sponsored third party originator also be a real estate agent?” Fortunately there are some talented folks, and government agencies, that know the answers to these. Barbara Werth (Mortgage Training Today – barb@mttoday@co) wrote to HUD and writes, “I went to the reference listed in the second section, 4060.1 Chapter 2, page 6. I don’t think you can do both (as a sponsored TPO – not an Eagle lender – or ‘broker’, carrying a real estate license and mortgage originator license even if a state supposedly allows it).”
HUD wrote to Ms. Werth, “FAQ: Can I work for a lender as a loan officer and as a realtor for another company at the same time? No, FHA does not permit “dual employment” on a full or part time basis in any mortgage lending, real estate, or related field. The restriction applies to all employees who are employed by a FHA approved lender that work on FHA loans. This also applies to a lender’s “wholesale account representatives” that originate loans through sponsored third party originators (brokers). This includes working as a real estate agent or broker for another company. A loan officer may hold a vocational or professional license in real estate but may not engage in realtor activities or make use of the license while employed by a FHA approved lender.”
HUD also wrote, “The following information is regarding if a mortgage broker can work as a real estate agent. FAQ: Can a loan officer of a sponsored third party originator also be a real estate agent? Yes, if the sponsored third party originator is not a FHA approved lender or an employee of a FHA approved lender. However, the loan originators of non-FHA approved entities must comply with applicable federal, state, and local requirements governing their FHA loan activities. If the sponsored third party originator is a FHA approved lender, it is subject to the staffing and employment requirements in Handbook 4060.1, Chapter 2. FHA does not prohibit loan originators of FHA approved lenders from maintaining a real estate broker or sales agent license, as long as the FHA approved lender has controls in place to ensure the individual does not make use of their license.”
In other news, Subprime is back. No not necessarily stated income, but yes Subprime loans for credit impaired clients are back in full force. Rates start at 7.95% for 7 year fixed 30 year fixed
AND BANK STATEMENTS can be used for income (Personal or Business). Down payments are big as you would expect, but leverage up to 75% LTV is available. 
I have multiple sources for owner occupied properties and non-owner occupied properties. 
In other not so shocking news, Real Estate is hot. Phoenix alone had 23% price appreciation YOY. 
California is following right behind that double digit YOY appreciation. So kids go buy some homes. If you income is good and stable, this is a great time to move up to that dream home. 

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