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More agents pursue dual licensing to manage deals end to end
An FHA clarification letter in December 2022 helped refocus attention on multiple roles and compensation, as the 30-year fixed mortgage rate rose to 6.3% by then.
HousingWire reports that more real estate agents are pursuing mortgage loan originator, or MLO, licensing to reduce the handoff after a purchase contract and to maintain continuity from pre-approval through closing.
The outlet cites a December 2022 Federal Housing Administration letter and higher mortgage rates as key factors behind the renewed push for what is known as dual licensing, where agents hold both a real estate license and an MLO license.
HousingWire notes that the licensing shift is partly driven by buyer behavior, including findings that 88% of home buyers use an agent or broker and 74% finance the purchase, meaning many transactions involve mortgage lending.
The article also warns that dual licensing can add substantial compliance work, including obligations tied to RESPA, TILA, disclosures, and sponsorship requirements, while emphasizing that the FHA letter addressed concerns around multiple roles and compensation in FHA-insured transactions.