Are you referring borrowers to home mortgages lenders for free? Become a REMLO and get paid.

Recent groundbreaking regulatory changes have opened the door for real estate agents, former loan officers, and other professionals to be paid for the loans they previously had to refer out to lenders for free. This is accomplished while staying in full compliance with RESPA and other regulations. The path for real estate agents is to become a REMLO (Real Estate Mortgage Loan Originator). For everyone else becoming a part-time junior loan officer is the way. And with the right lender, using the right tools, it’s surprisingly easy. Learn more below.

“REMLO” is an acronym for a real estate professional who also becomes a mortgage loan originator

With recent regulatory changes and modern technology, the barriers to real estate agents and others becoming MLOs have all but disappeared.

No state MLO license is required (with the right lenders) to become a REMLO

There is no state MLO licensing requirement to become a loan officer when you work with a federally chartered bank. REMLO candidates just need to onboard with the bank to get started. (Employees of federally chartered banks do regular monthly training rather than up front licensing.) They can live anywhere in the US and loan officers with federally chartered banks can lend in all 50 states.

Pay structure

Most lenders we are working with are currently paying 50 bps (0.5%) commission to their REMLOs. Some have production bonuses on top of that. With home prices so high these days, that is often translating to thousands of dollars per loan for REMLO partners. Contact us here to connect with a federally chartered lender that is currently hiring REMLOs in all 50 states.

Technology makes it simple

One of the reasons being a part-time, remote REMLO is becoming popular now is current technology makes it easy to do the basics of loan origination: REMLOs can send links to online applications, do soft credit pulls, and send pre-qualification letters all with a click or two in a simple mobile app.

Recent FHA changes opened the door for real estate agents to become REMLOs

Around two decades ago the FHA published a vague rule prohibiting dual compensation on FHA loans. Most lenders were not willing to risk losing FHA approval so they would not employ licensed real estate agents as MLOs. In December of 2022 the FHA clarified their rules and now the FHA clearly allows real estate agents to also be MLOs.

Get paid for refinances and out-of-state purchase loans too

Not only do REMLOs get paid for the home purchase loans their contacts get, they also get paid for mortgage refinances they originate. Plus REMLOs can help folks who are moving out of state with their new mortgage, since federally chartered banks can lend in all 50 states.

Being a REMLO is fully compliant with RESPA and other regulations

By hiring on as part-time W2 employees of the lender, and by actively participating in the loan origination process, REMLOs are able to remain fully in compliance with all regulations while being paid for the loans their contacts get.

Real estate brokers can become a “REMLO team lead” for their entire team

In some cases, a real estate broker or team leader will choose to be the “REMLO Team Lead” for their team. This allows all of the real estate agents on the team to be hired and paid as REMLOs and for the team leader to manage them and receive an override for the loans closed by the team members.

More info on the new REMLO program

FAQ

What industry regulations changed to make this feasible?

New FHA guidelines quietly released in December 2022 exempted real estate agents from the FHA’s precluded dual compensation list. Before this change, most lenders would not hire real estate agents as loan officers for fear of being cut off from FHA loans entirely.
RESPA rules have always allowed real estate agents to also be loan officers – but only if they were hired as W2 employees of the lender and only if the REMLO could demonstrate they sufficiently participated in loan origination process.

Why isn’t every lender doing this now?

The FHA guideline changes are still fairly recent, and many lenders just haven’t fully considered the implications of the guidelines changes yet.
Only federally chartered lenders can hire REMLOs without requiring them to go through the time-consuming process of getting a state loan originator license in every state they want to lend in. The cumbersome state licensing requirement will likely be more than most REMLO candidates want to deal with, and that fact will keep most brokers and state-chartered lenders from ever participating.

What are the steps for REMLOs in the loan process?:

In most cases the REMLO uses a mobile app to send clients a link to their online loan application. It usually takes 5-10 minutes for the online application to be completed and submitted by the client.
Once the online application is submitted, the REMLO receives notice in the mobile app. The REMLO then reviews the file with the bank support team and does a one-click soft credit pull in the mobile app to be sure credit scores look ok.
The REMLO then asks their bank support team to review the application and credit to determine the maximum loan amount the borrower can likely qualify for, based on up front info. (REMLOs can calculate that themselves if they prefer as well).
Once a max loan amount is calculated, a pre-qualification letter can be created with a couple of clicks in the mobile app and sent immediately to the borrower.
The bank loan team takes over the loan process from there through the finish line. The REMLO is copied on and participates in all the steps along the way as the MLO of record.

How much is a REMLO usually paid?

The most common pay structure is 25-50 basis points (0.25-0.5% of the loan amount) paid to the REMLO for each loan closed, depending on monthly volume. Some banks are paying up to 60 bps commissions in months where the REMLO closes more than $1M in loans. This applies to both purchase and refinance loans.

Do REMLOs normally work remotely?

Yes. Nearly every REMLO position is a remote, part-time role. Most REMLOs have full-time day jobs as real estate agents/brokers. The same is true for Junior MLOs who are not real estate agents. The main thing they all have in common is they have contacts who need help with mortgages.

What qualifications are required to become a REMLO?

The main qualification to be a REMLO is the demonstrated ability to refer/originate home purchase or refi mortgages.

How do I learn more and get started?

Why refer mortgages out to lenders for free when you could and should be part of the lending team yourself?

Contact us to learn more about becoming a REMLO today.