Yes. California law directly regulates a real-estate licensee who also arranges the loan on the same transaction, and permits it with written disclosure to every party.
What California requires
- Disclose the dual role in writing to all parties within 24 hours, and collect signed acknowledgments, as 10 CCR 2903 requires.
- For a salesperson, the retaining real-estate broker makes that disclosure and collects the acknowledgments.
- Hold either a DFPI MLO license or an active DRE MLO endorsement, with the loan arranged through a licensed company.
- Disclose the form, amount and source of any compensation received from a lender before closing, under 10 CCR 2904, where it applies.
What the rule says
that agent, person, or entity shall, within 24 hours, make a written disclosure of those roles to all parties to the sale, lease, or exchange, and any related loan transaction.
Where the Real Estate Licensee is a real estate salesperson retained by a corporate or individual real estate broker, the written disclosure must be made by the real estate broker who retains the salesperson. The written disclosure made by the Real Estate Licensee shall include an acknowledgement of receipt, which acknowledgment must be signed by all parties to the transaction.
who receives compensation, or who anticipates receiving compensation, from a lender in connection with the securing of financing for the transaction, to fail to disclose to both parties, prior to the closing of the transaction, the form, amount and source of compensation received or expected.
What we have not settled
Whether the Section 2904 lender-compensation disclosure applies to broker-paid compensation is a question for the brokerage and its counsel.
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.