We found no Michigan rule against a real-estate agent acting as the mortgage loan originator on the same purchase. The Mortgage Brokers, Lenders, and Servicers Licensing Act and the real-estate license law contain no prohibition, and the older prescriptive rules were rescinded.
What Michigan requires
- Hold an active Michigan 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.
What the rule says
(b) Engage in fraud, deceit, or material misrepresentation in connection with any transaction governed by this act.
A licensed mortgage loan originator shall not do any of the following: (a) Engage in fraud, deceit, or material misrepresentation in connection with any transaction governed by this act.
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.
Ike in Michigan
Coming soon. Licensing is underway in Michigan. Availability is subject to required approvals, and launch timing varies by state.