Is it ok when MLO directly process loan with lenders?

[Vince Le]

Why do I see some independent mortgage loan officers submit borrower's application directly to lender without going thru their employer/broker's loan processing?

Will the MLO get the full compensation for themself by doing so, and is it illegal?

[Doug Smith]

If you're talking about investor loans (flip, DSCR, investor construction), then it's a grey area. The consumer side is heavily regulated and it is definitely a no-no to submit directly without going through the broker, but "commercial loans" are not as heavily regulated. I think you just have to ask yourself if you want someone half-a$$ing your loan by going around their normal channels. It's not necessarily illegal if it's commercial, but it's a bit sketchy.