Mortgage Consulting Position for Real Estate Agents

HUD’s New Dual Commission Opportunity for Real Estate Agents

(Now offered in Idaho exclusively by Western Mortgage Brokers, Inc.)

Real estate agents can now (as of 12/15/2022) receive a real estate commission and up to $4000 for basic mortgage consulting on the same transaction. With a Mortgage Consulting license, you would educate your clients with more detailed information upfront regarding loan products and the loan process. A senior loan partner (with over 25 years’ experience) will handle all the application, processing and funding details. Your real estate license will remain where it is now. Western Mortgage Brokers, Inc., founded in 1999, is headquartered in Eugen Oregon.

How is this legal? Is this not a conflict of interest and an illegal kickback?

• Regarding a conflict of interest: Per HUD’s December 2022 Mortgagee Letter 2022-22; participants [i.e., Real Estate Agents] that do not have a direct impact on the mortgage approval decision [underwriters, appraisers, inspectors, and engineers] may now have multiple roles and/or sources of compensation in a single transaction. This rule became effective December 15th, 2022. HUD's change was the result of receiving continued requests for clarification by industry participants. Presumably, a result of the forthcoming changes in the MLS cooperative compensation model. Adding mortgage consulting compensation to your business will be an important offset to any negative consequences that may result.
• Regarding RESPA Section 8(a), the prohibition of giving or accepting a thing of value for a referral. RESPA Section 8(c) provides some exceptions to 8(a). The exceptions include an “employer’s payment to its own employees for any referral activities.” To qualify for this exception, you will be a bona fide W-2 employee of our company.
• Regarding Washington State rules and regulations, Washington Administrative Code 208-660-300 (7). states "...may act as a loan originator and a real estate agent...in the same transaction...".
• Regarding the state of Oregon. Oregon Division Financial Regulation (DFI) follows the rules set forth by HUD regarding this topic of agents acting in a Dual Capacity on the same transaction.

How much can I earn for being a Mortgage Consultant on my own transactions?

Mortgage Consultants will earn a commission equal to .75% of the funded loan amount with a cap of $4,090. For example, on a loan amount of $500,000 your commission will be $3,750. For applications that are denied, withdrawn, or are terminated for any reason a minimum commission of $100 will be paid. We also offer our employees a recruiting bonus. Simply refer another agent and get paid $4,000 on their first closed loan transaction.

Will I get paid when my client does a future refinance?

Yes, and this is one of the best reasons to become and remain a mortgage consultant with our company as each purchase client is also a future refinance client - at least once. Why make money on only the purchase?

What is the process and cost of getting my mortgage consulting license?

We will help you (or your transaction coordinator) obtain the mortgage consulting license. The pre-licensure online education required is a total of 20 hours. A score of 75% or better is required on the NMLS exam. Total cost is approximately $500 but, as an employee of our company, you will be paid $15.74 per hour to complete the process. In effect, we will be reimbursing you your licensing costs. Even better, you will also be compensated as described above for any referrals generated duringthe licensing process. Why wait, let’s get this going now!

This extra commission sounds great, but does it come at an expense to my client?

No. The commission paid to you cannot be charged to your client. It comes directly from our profit. Over the last 6 months we completely restructured our company of 23 years to obtain this margin.

Are my clients required to use Western Mortgage Brokers?

No, but we are confident they will choose us because of our rates, loan programs and quick turn times.

Is Western Mortgage Brokers also a real estate broker?

No. Your real estate license will continue to be sponsored by your brokerage or one of your choosing.

How does my client benefit?

Your client will benefit in a number of ways. First, your client will receive better upfront education and advice regarding loan products and the loan process (Fact - a client shopping for a real estate agent is more likely to choose someone that is seen as a better resource for all their questions). Second, our lender is United Wholesale Mortgage (UWM), the largest wholesale lender in the country, and as such, they have the best rates, loan programs and turn times. We close 80% of our loans in under 21 days. Third, you will have direct access to our live rate loan scenario; just plug in basic information such as sales price, down payment, loan program, estimated credit score and give your client real-time rate and payment information - 24/7. Fourth, you will have greater control during your transaction by having 24/7 portal access to your client’s loan status including conditions, appraisal progress and much more. You can also speak with the underwriter as needed.

Will my client be offered all the normal loan products through this program?

Yes, we have all the normal loan products you are used to. For example, Conventional, FHA, VA, Bank Statement Only, DSCR, HELOC's and Jumbo loan programs for SFR, Vacation and Investment properties. We lend on 1-4 units including MFH on land. We also have a One-time Close Construction, Reverse Refinance Mortgages and Reverse Purchase Mortgages. (A Reverse Purchase Mortgage loan allows those 62 and older with large down payments to purchase a home with no monthly payment requirement).

Does Western Mortgage Brokers provide leads?

Not directly but we can promote you and your real estate agent services on our website with your own webpage for the area you serve. With Search Engine Optimization (SEO) we hope to generate leads for you by leveraging your location. Others use this extra commission to enhance their existing marketing efforts, such as purchasing more leads. An individual webpage is not required. Some agents want to be a “silent partner” so to speak.

What additional disclosures must my client sign?

The client will sign a “Dual Capacity Disclosure”. This disclosure informs the borrower that you are licensed as both a real estate agent and a mortgage consultant and that they are free to shop lenders. Our current mortgage consultants are reporting that this disclosure is helping build better relationships upfront with their clients. Afterall, a consumer is really only concerned with getting the best information/education possible and trusting the person they ultimately choose to represent them.

I have an assistant; can they be paid as a Mortgage Consultant on my clients?

Yes. This is an excellent way to reduce your current team expense. It’s also a great way to highly compensate a great assistant.

Can a Mortgage Consultant be trained to be a Senior Loan Officer?

Yes. If you or they choose to enroll in our Loan Originator training program we have online, in-person, and live client training. We also offer a 4-day in-person Loan Originator class in Pontiac Michigan. Airfare and hotel expenses are paid for by us. This class can also be taken online. Both in-person and online classes (over 120) are self-paced, voluntary and offered at no cost.

Please provide me a hypothetical scenario once I have a client.

Once you have provided your new client with information about the various loan programs, the loan process and even completed a basic pre-qualification (if you so choose), you will recommend your list of lenders (us included) to your client as you currently do now. We recommend a three-way conference call for a warm introduction. A senior loan partner (with over 25 years’ experience) will handle all prequalification, application, processing and funding details. This call is also a great training opportunity for you to listen and learn more about the formal prequalification and preapproval process. Once loan application has been made and the transaction underway you can be involved as much or little as you like.

-----------------------------------------------------------------------------------------------

Attract and retain more clients by delivering an unparalleled level of expertise by adding mortgage consulting to your business. Don't leave money on the table, now is the perfect time to invest in your business!

The above Q&A is a compilation of questions asked of the agents hired to date. Visit our website to meet/discuss with the others that have joined. As a part-time, work-from-home Mortgage Consultant you will set your own hours. We don't have any production requirements or employment related costs such as technology/desk fees, professional association fees, or insurance/liability fees. As an employee, you will receive a W-2. The only costs you’ll incur on a regular basis are the costs of your 10 hours annual continuing education (~$150) and your annual license renewal (~$100).

For more information contact:

Mark Peterson, President

Western Mortgage Brokers, Inc.

Eugene Oregon

(541) 953-4903 Direct
www.WMBrokers.com

Company NMLS # 220343

Individual NMLS # 238900 (OR, WA, ID)

Job Type: Part-time

Pay: Up to $20,000.00 per month

Expected hours: 2 – 5 per week

Benefits:

• Professional development assistance

Experience level:

• No experience needed

Schedule:

• Choose your own hours

Application Question(s):

• Are you an active real estate agent in Idaho, Oregon or Washington State? This is required.

License/Certification:

• real estate license in Idaho, Oregon or Washington (Required)

Work Location: Remote

Salary : $4,000 - $4,090