Published: July 2025
As a Homebuyer, how would you feel about your Realtor also being your Mortgage Loan Officer? Reviews are mixed but the industry is seeing an uptick in this trend as more lenders are supporting it, citing the ability to boost business and strengthen relationships. It doesn’t come without issues, however.
A 2024 Hanover Research survey found that 32% of real estate agents are currently pursuing or plan to pursue an MLO license and another 42% are considering it. A recent National Mortgage Professional article emphasizes the uptick, saying that many agents are transitioning into more of dual role to compensate for shrinking buyer-agent commissions following the NAR settlement. Agents are able to earn a combined commission from both the real estate and the mortgage side of the transaction – this is the driver behind roughly 55% of those considering it.
Compliance and Regulatory Risk
Federal rules like RESPA and the LO Compensation role create a complex regulatory landscape. FHA permits dual roles in FHA insured loans but USDA has previously prohibited it, creating conflicting guidance. It is also now possible for Dual Licensing to exist with Conventional and VA mortgage transactions, provided many requirements and disclosures are in place. Legal experts caution that improper structuring may lead to RESPA violations and steering rules, particularly if compensation is not handled correctly or lacks proper disclosure.
To further complicate things, not every state allows it. Dual licensing is currently lawful in approximately 45 states, often with strict disclosures or limitations. Certain states, including ND, IL, UT, LA, RI and Maryland explicitly prohibit acting as both Real Estate Agent and MLO in the same transaction. TX, CA, OH, NY, VA and WA allow dual roles though often require stringent disclosure and ethics compliance regulations.
Those who embrace the dual role concept cite the “one stop shop” convenience for buyers by integrating home financing together with agent services, while those opposed have expressed concerns that it is a “legal nightmare just waiting to happen” and is fraught with too many restrictions and regulatory issues.
What do you think? Will dual licensed agents perform better in retention and volume, or will they face too many Operational/logistical challenges? Does your company embrace Dual Licensing? Drop your opinion in the comments!
See more about this in Mortgagenewsdigest.com and nationalmortgageprofessional.com.
Author: Tami Coffey
