Can a properly licensed mortgage loan originator be sponsored by more than one lender?

[Account Closed]

I have gotten mixed messages on this. As a properly licensed MLO can I take apps for more than one sponsoring lender in my state(s)?

If so, don't I become a sort of mini-broker: Shopping my apps to my multiple sponsors? For the best price?

Is this allowed? Is it state-specific?

Archie

[Bill Gulley]

Welcome to BP, Richard.

If you are a Broker, yes, you may have multiple wholesale or lender origination agreements.

The issue will be as being a broker under your name (business) and posting your own bond requirements and meeting net worth requirements and compliance issues as a broker. You are then an independant broker.

An MLO under one lender that is sponsored by a lender under thier bond, insurance, net worth and compliance is in an agency relationship. You are an agent of that lender. In an agency relationship you serve that master and doing business with other lenders is not serving the best interest of your employor or principal. So, no, not unless they allow other lenders to receive applications through them.

I doubt a lender would accept an application from a MLO under another lender as you would not be bonded or insured for that origination. :)