We found no Alabama rule against a real-estate agent acting as the mortgage loan originator on the same purchase. The Alabama Mortgage Brokers Licensing Act contains no prohibition on the dual role.
What Alabama requires
- Hold an active Alabama MLO license sponsored by a licensed mortgage company, alongside the real-estate license.
- Disclose both roles and both forms of compensation to the buyer in writing before acting in the second role.
What the rule says
Prior to the collection of a mortgage broker fee from a borrower, disclose to the borrower in writing the nature of the mortgage broker's relationship to the borrower and the method by which the mortgage broker will be compensated for services.
Any licensed real estate salesperson or broker who provides mortgage loan assistance in the course of doing business unless the real estate salesperson or broker is compensated for providing mortgage loan assistance.
Ala. Code § 34-27-36: Alabama Real Estate License Law, disciplinary grounds. ALISON code site is a JavaScript app, arec.alabama.gov LawList redirects in a loop, and Justia, FindLaw and Casetext mirrors returned 403 or 410. Matches the map's own residual.
What we have not settled
Our reading of the real-estate side, Ala. Code 34-27-36, is not yet complete.
What applies in every state
- Both licenses must be active. The mortgage side is an individual MLO license, sponsored by a licensed mortgage company, with the SAFE test, 20 hours of education and a background check behind it.
- Federal law sits above the state rule. RESPA Section 8 bars pay for a referral, and Regulation Z sets what a loan originator may be paid for. Compensation on the mortgage side is for origination work performed. The RESPA and referral-fee explainer walks through it.
- The lender on the loan has its own rule. FHA permits the dual role since 2022. Conventional lenders decide file by file in writing.
- The buyer keeps the right to choose any lender, and the disclosure says so.