Real Estate Professionals, are you being paid for mortgages you refer to your lending partners? Why not! Read more below about the groundbreaking program called REMLO that is available to you now!
Realtors can NOW Earn Income Originating Loans!
Recent regulatory changes have now made it possible for real estate agents, former loan officers, and other professionals to earn compensation for loans they previously had to refer to lenders without payment. This can be done while fully complying with RESPA and other regulations. By becoming a REMLO, these professionals can tap into this opportunity. With the right lender and tools, the process is simpler than you might think. Discover more below.
No state MLO license is needed as a REMLO.
When working with our federally chartered bank, there are no external licensing requirements to become a loan officer. Part-time REMLO candidates simply need to complete the bank’s onboarding process to begin. They can reside anywhere in the U.S., and loan officers with federally chartered banks are able to lend in all 50 states.
Pay structure
We a currently pay up to 50 bps (0.5%) commission to REMLOs. With home prices so high these days, that is translating to thousands of dollars per loan for our REMLO partners.
Our Technology makes the process simple
One of the reasons being REMLO is so easy is that current technology helps with the basics of loan origination: REMLOs can just send an application link to their client, complete a soft credit pull, send a pre-qual letter with a simple click or two in an amazing mobile application.
Recent changes by the FHA have made it possible for real estate agents to become REMLOs.
While RESPA rules have always allowed real estate agents to also be loan officers, the FHA previously prohibited this, creating a significant barrier. Most lenders were unwilling to risk their FHA approval by hiring real estate agents as LOs. However, in December 2022, the FHA updated its regulations, now allowing real estate agents to serve as MLOs.
Earn commissions on refinances and out-of-state purchase loans as well.
REMLOs not only get paid for the real estate transactions, but the home purchase loans they refer under this program also provide compensation. In addition, any future refinances those contacts complete will also provide future compensation. Even better, REMLOs can assist clients moving out of state with their new mortgages, as federally chartered banks have the ability to lend in all 50 states.
Being a REMLO is comparable to joining a mortgage affiliate program.
By becoming part-time W2 employee and actively participating in the loan origination process, REMLOs can earn compensation for the loans their contacts secure while staying fully compliant with all regulations.
Being a REMLO is similar to participating in a mortgage affiliate program
By joining as part-time W2 employees of the lender and actively engaging in the loan origination process, junior loan officers (REMLOs) can earn compensation for the loans their contacts obtain while staying fully compliant with all regulations.
What regulatory changes made this possible?
• In December 2022, the FHA quietly updated its guidelines, removing real estate agents from the list of those prohibited from dual compensation. Previously, lenders were hesitant to hire real estate agents as loan officers due to concerns about losing access to FHA loans.
• RESPA regulations have always permitted real estate agents to work as loan officers, but only if they were employed as W2 employees of the lender and could demonstrate sufficient participation in the loan origination process.
• The requirements for hiring junior loan officers (REMLOs) who are not real estate agents have remained unchanged.
Why aren’t all lenders doing this yet?
• The FHA guideline changes are still recent, and many lenders haven’t fully explored the implications of these updates.
• Only federally chartered lenders can hire REMLOs without requiring them to go through the lengthy process of obtaining a state loan originator license for each state the REMLO would like to participate.
• The complexity of state licensing is likely more than most REMLO candidates are willing to handle, which prevents most brokers and state-chartered lenders from participating in this approach.
What are the steps for REMLOs in the loan process?
- The REMLO uses a mobile app to send clients a link to the online loan application, which usually takes 5-10 minutes for the client to complete and submit.
- Once the application is submitted, the REMLO is notified through the mobile app. They then review the file with their VMA Loan Officer Partner and use a one-click soft credit pull in the app to check the client’s credit score.
- The REMLO asks the Loan Officer Partner to review the application and credit to estimate the maximum loan amount the borrower is likely to qualify for. (The REMLO can also calculate this themselves if preferred.)
- After the maximum loan amount is determined, the REMLO will generate and send a pre-qualification letter to the borrower with just a few clicks in the mobile app.
- From there, the bank’s loan team handles the rest of the process, keeping the REMLO informed as the MLO of record throughout each step while the REMLO maintains contact with and supports the client.
How much do REMLOs typically earn?
The most common compensation structure is 50 basis points (0.5% of the loan amount) paid to the REMLO for each loan closed, depending on the monthly volume. This rate applies to both purchase and refinance loans.
Do REMLOs typically work remotely?
Yes, nearly all REMLO positions are remote and part-time. Most REMLOs hold full-time jobs as real estate agents, brokers, or in other professions. What they all share is a network of contacts who require assistance with mortgages.
What qualifications are required to become a REMLO?
The main qualification to be a REMLO is the demonstrated ability to regularly refer/originate home purchase or refi mortgages.
Don’t miss your chance to boost your income in 2024!
Our REMLO program is tailored to help you increase your earnings while offering your clients improved and more efficient mortgage services.
