advisor also being mortgage licensed?

[CFP83]

I have been giving a local mortgage broker about 30-40 loans per year for the past three years. They do great work, however like most transactional professionals find it hard to keep this a "two way street" of value add. They are earning three times in fee's than what we are earning off their referrals, which are mainly people wanting life insurance who they have done the loan for.

So, our conversations have came to "what if I became mortgage licensed so that they could pay me directly a split". This would result in roughly $40,000 of annual income coming to me.

I am wondering if any on the board know or are familiar with an advisor who is also holds a mortgage broker license?

 

[DHK]

I know of one - not affiliated with a B/D or RIA. But he's directly contracted with the mortgage loan origination company. I haven't spoken with him for quite some time, but he seems to "do it all" for a chosen demographic: teachers. He does legal document preparation, taxes, life and annuities, mortgage loan origination, etc.

BRYAN SCHURTER | Tax & Financial Advisor

I tried to find his mortgage website listing, but can't find it. Other mortgage officer sites that feature his name aren't in service anymore, so I don't know if he's contracted with a particular mortgage company or not.

 

[CFP83]

updated on this 2018 post.......
An important background info here....our firm is an state registered RIA (no broker-dealer relationship at all) then we have a LLC which is an insurance agency, which is how we do Life/DI/LTC.

So I originally posted this thread a little over a year and half ago now.....and I'm finally pulling the trigger.....as soon as the prometric testing centers open up here in May I am sitting for the Mortgage Loan Officer test.
In 2019 I referred 44 clients who refinanced their homes through our local mortgage broker relationship. This referral relationship has been working excellent as no one has been able to beat his pricing through the network of 10 lenders he utilizes. However, given the rate environment and hi own referrals/network that's bringing in business, he literally can not handle the bandwidth of referrals I'm sending his way.
So because of this, we rekindled this 2018 conversation about my being licensed. The idea here is that as I'm discussing with our clients the reasons to considering refi'ing (which I am already doing everytime I send business his way) being licensed will allow me to go ahead and get all the documents and paperwork started as we have all their info anyway. Once everyone is gathered and the application completed we will turn it over to his team. I will be a 1099 mlo with his firm so that we can do a 60/40 split. The state of ohio securities department has stated that I obviously will need to have RIA clients sign a disclosure of this

I'm excited about this expanded capability. As I look into the future it allows me to bring on a staff person who could solely focus on generating mortgage business......which as they gather all the persons financials there will be the ability to refer insurance business, investment opportunities, or financial planning.

I'm curious to hear any of your thoughts/feedback, or as I mentioned in the original posts, if you know of anyone/any organizations doing this I would love to find that unicorn who has already went down this path.

 

[Chase Vaughan]

Wondering how this has worked out for you? I have been trying to find info on doing almost the same thing. I am really looking to have a Insurance Agency/Mortgage Broker/Financial Services all in house to take care of clients holistically.