Posted by John (TX) on August 21, 2003 at 01:15:30:
HUD is a federal government program. Loan officers/brokers are licensed and regulated at the state level. Each of the 38 states that require a license to be a loan officer have state laws that dictate what you can and cannot do.
(Just as an aside: Isn’t it scary that 12 states still do not require a license to be a loan officer or broker?)
I don’t know the answer to your question but HUD has nothing to do with licensing or regulating loan officers. Check with your state licensing authority. They can definitively answer whether or not you can work for more than one broker at the same time.
I am getting conflicting information regarding mortgage licensing. Hopefully someone can clear this one for us.
I and my husband are both in mortgage brokeraging business -I am a senior mortgage officer with a loan officer’s license in NC and my husband is an account executive (he can take his mortgage officer license test any time).
We are contemplating opening our own mortgage brokerage shop or joining a net branch. Either way, our initial plans were to stay with our current employers for about 6 months while we are getting started with our business; however, I learned that I can’t work for more broker at this same time under HUD rules. This of course means that we to give up either my current employment (or at least one of us) or hold off our plans to open our own shop…
What I am not sure about is whether or not my husband can be a branch manager with a net branch (or principal broker for own company) if he is not originating loans currently -his is account exec without the need to have the license.
All in all the question is - does the HUD prohibits broker (or loan officer) from originating for more than one broker OR does the HUD not allow working for more than one broker in ANY capacity.
HUD does not allow you to be employed by 2 Lenders. It has nothing to do with your license. You can find this information at www.hudclips.org - click on “Library”, Click on “Select All Handbooks” and “Search” then type in “4700.2” under “Document Number”. The information is located in Chapter 2 - Section 2-9 Item C - states that if you are employed by a Lender, you cannot work for another Lender, home improvement company, manufactured housing company, or in the real estate industry. (So you can’t be a loan officer and a Realtor - and not just on the same closing - you can’t be a Realtor AT ALL while you are employed at a Mortgage Company that originates FHA loans.) Keep reading, section 2-10 talks about compensating a loan officer. I’m sure your other question is answered in this HUD manual as well.
Here’s my suggestion, one of you stay where you are at, the other one open the mortgage company. When the new mtg. co. gets going and can support you both, the other one comes to work for the new mtg. co.
Also, in regards to your question about your husband being able to be a branch manager since he doesn’t originate - the license has nothing to do with HUD/FHA. However, the lender you will set up a net branch for will determine whether or not they want to hire him if he hasn’t been originating. If your State requires the loan originator/branch manager have a license, then he will need to get one.