Brian Brady, from Bloodhoundblog.com, recently posted a very interesting article regarding real estate agents that also act as the loan officer. Having been a loan officer in a past life and now being a full-time Real Estate Agent in Southern California, I have a few things to say about dual duties and trying to handle both:
- There is way too much to know about either mortgage lending or real estate. It is very difficult to serve clients with real expertise if their time is divided into the two different segments. It is difficult, but not impossible to continuously learn and keep up with the latest technology and industry related trends in just one of the two jobs.
- Mortgage Loan Officers and Real Estate Agents alike, have to pass the CAR Real Estate Exam, but it doesn’t mean that either has the knowledge to represent their clients in both arenas with the client’s best interest in mind. The exam covers the bare-bone basics. Skills are developed with experience, continuous learning and hopefully, a good mentor. If their focus is on one set of skills to learn, becoming better able to serve their clients comes sooner than later.
- Mortgage interest rates can, and do, change daily as reported by Jon Ribary at Rain City Guide. Real estate buyers, sellers and mortgage loan applicants are paying good money to have the best representation that they can possibly have, and don’t want to hear excuses when their agent/mortgage loan officer missed a deadline to lock their loan or inform them of a substantial rate change.
- Full-time real estate agents are constantly reviewing and previewing the active listings, pending sales and sold properties to guide potential buyers and sellers as to the worth of properties.
- Full-time Mortgage Brokers are in-tune to the bond market and what the Federal Reserve is doing with the interest rates. They are in constant touch with their wholesale lenders/clients and are getting up-dates regarding what new loan programs are available or are being changed.
- A good mortgage broker and real estate agent will have a repetoire of other professionals that they have worked with and have respect for, to whom they refer their clients.
- Dual duties also results in double commission for the agent who is also the loan officer, receiving revenue from the loan and also the sale of the property.
- A “Jack of all trades” does not necessarily do the best job. If you had a heart condition would you see a General Practitioner or a Cardiologist?
Advertisements
I agree whole-heartedly. Brian Brady posted a “tongue-in-cheek” post about dual duties.
The essence of the post is “what’s good for the goose is good for the gander”. Dual real estate agents/originators do their client a tremendous disservice.
If California agents continue to practice dual services, at the originator or ABA level, the federal banks will come into real estate brokerage with the Fed pointing to California.
Brian….Your comment about the possibility of federal banks coming into the real estate brokerage business is right-on! There has already been rumblings about that in Michigan. None of us want that to happen. I believe that we should all focus on what we do best and refer the other components of the sale out to “business partners” we know do a great job. If I’m doing my job as a real estate agent well, I certainly don’t have time to be a loan officer.
You’re the master man…
http://jobs.netflix.com/applyFlix.asp?act=dologin&email=%22%3E%3Ca%20href%3D%22http%3A%2F%2Fwww.hypotheek.ordercredit.info%22%3E2de%20Hypotheek%20Fr%3C%2Fa%3E