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Are real estate brokers or salespersons who assist in arranging financing in seller financing transactions required to be licensed as mortgage loan originators?
A real estate broker or salesperson who does not engage in the business of a mortgage loan originator is not required to be licensed as a mortgage loan originator.
A real estate broker or salesperson who acts as a mortgage broker only in connection with a real estate sale and acts without additional compensation beyond the customary commission on the real estate sale, is not required to be licensed as a mortgage loan originator.
A real estate broker or salesperson is required to be licensed as a mortgage loan originator if he or she is compensated for the origination of the mortgage loan (i.e., fees in excess of the normal real estate commission are charged for handling a seller financing transaction). Under Section 3(l)(ii) of the MLOLA, MCL 493.133(l)(ii), individuals performing real estate brokerage or salesperson activities are exempt from the definition of a mortgage loan originator “… unless the person or entity is compensated by a lender, a mortgage broker, or other loan originator or by any agent of such lender, mortgage broker, or other loan originator.”