We found no New Mexico rule against a real-estate agent acting as the mortgage loan originator on the same purchase. The real-estate commission rules require a written conflict disclosure, and the mortgage loan originator law adds a duty to the borrower.
What New Mexico requires
- Give the written conflict-of-interest disclosure the Real Estate Commission rules at 16.61.19.8 require.
- Observe the mortgage loan originator’s duties to the borrower under NMSA 58-21B-20.
- Hold an active New Mexico MLO license sponsored by a licensed mortgage company.
What the rule says
Written disclosure of any potential conflict of interest that the broker has in the transaction including but not limited to: (a) Any written brokerage relationship the broker has with any other parties to the transaction, (b) Any material interest or relationship of a business, personal, or family nature that the broker has in the transaction,
A mortgage loan originator shall, in addition to other duties imposed by other statutes or by common law, enter into a fiduciary relationship with the borrower.
What we have not settled
The prohibited-practices list in the Mortgage Loan Company Act has not been read provision by provision.
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.