There is no outside licensing requirement to become a loan officer when you work with a federally chartered bank. Part-time junior LO (REMLO) candidates just need to onboard with the bank to get started. They can live anywhere in the US and loan officers with federally chartered banks can lend in all 50 states.

The lenders we are working with are currently paying up to 50 bps (0.5%) commission to their REMLOs. With home prices so high these days, that is translating to thousands of dollars per loan for REMLO partners. Contact us to connect with federally chartered lender that is currently hiring REMLOS in all 50 states.

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.

RESPA rules always had allowed real estate agents to be loan officers. The main barrier in years past was the FHA prohibited this. Most lenders were not willing to risk losing FHA approval so they would not hire real estate agents as LOs. In December of 2022 the FHA changed their rules and now the FHA allows real estate agents to also be MLOs. (Regulations have always been less stringent for referral partners who are not real estate agents.)

Not only do junior LOs (REMLOs) get paid for the home purchase loans their contacts get, they also will get paid for refinances their contacts do down the road. 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.

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

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

What industry regulations changed to make this feasible?

• New FHA guidelines quietly released in December 2022 removed 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.
• The requirements to hire referral partners who are not real estate agents as junior loan officers are even less strict.

Why isn’t every lender doing this now?

• The FHA guideline changes are still 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. 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 local lenders from ever participating.

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

1. In most cases the REMLO uses a mobile app to send clients a link to the online loan application. It usually takes 5-10 minutes for the online application to be completed and submitted by the client.
2. Once the online application is submitted, the REMLO receives notice in the mobile app. The REMLO then does a one-click soft credit pull in the mobile app to be sure credit scores look ok.
3. 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).
4. 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.
5. The bank loan team takes over the loan process from there through the finish line. The REMLO is copied on all the steps along the way as the LO 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. 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 or some other profession. 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 around six home purchase or refi mortgages per year.