We found no Idaho rule against a real-estate agent acting as the mortgage loan originator on the same purchase. The real-estate license law requires written disclosure before closing, and the mortgage licensing law contains no prohibition.
What Idaho requires
- Give the written disclosures Idaho Code 54-2054(6) and (7) require before closing.
- Hold an active Idaho MLO license sponsored by a licensed mortgage company.
- Compensation on the mortgage side pays for origination work performed, not for directing the buyer to a lender.
What the rule says
No licensed real estate broker or salesperson shall charge or accept compensation from more than one (1) party in any one (1) transaction, without first making full disclosure in writing of the broker’s intent to do so, to all parties involved in the transaction.
However, a licensee legally receiving any fee or rebate from any person providing direct services to either the buyer or the seller in connection with a regulated real estate transaction is required to disclose the licensee’s intent to receive such fee, rebate or compensation in writing to all parties to the transaction prior to closing.
It is a violation of this part for a person or individual subject to this part, in connection with mortgage loan origination activity in this state, to: (1) Directly or indirectly employ any scheme, device or artifice to defraud or mislead borrowers or lenders or to defraud any person
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.