Holding Multiple Licenses and Title Company Ownership

In the mortgage brokerage industry, professionals often inquire about the feasibility and regulations surrounding holding multiple licenses and owning a title company. Here, we address some common questions and concerns.

Rules for Holding Multiple Licenses

Individuals can hold a real estate license without any issues. There are no specific restrictions against holding a real estate license while working as a mortgage brokerage, provided that all activities comply with relevant regulations.

"We LOVE Real Estate agents that are Loan Officers - RELO program"

Challenges of Owning a Title Company

Owning a title company can be more complex. One of the primary challenges is ensuring that all fees associated with brokering a loan are combined and do not exceed 300 basis points. This requirement can complicate the ownership and operation of a title company within the mortgage brokerage framework.

"Because when you if you're brokering a loan, right, all fees made on that loan, all fees must be added together, and they cannot exceed three hundred basis points."

Compliance with ABA Disclosure Requirements

Compliance with the American Bar Association (ABA) disclosure requirements is crucial. While holding multiple licenses or owning a title company, professionals must ensure that all activities are compliant with these disclosure requirements to avoid any legal issues.

For more information on related topics, you can explore other sections such as Introduction to Revenue Sharing in Mortgage Brokerage and Compliance and Profitability at Nexa.