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.”
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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. 
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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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