We found no Tennessee rule against a real-estate agent acting as the mortgage loan originator on the same purchase. The Residential Lending, Brokerage and Servicing Act contains no prohibition, and the real-estate broker law requires the written knowledge and consent of all parties.
What Tennessee requires
- Obtain the written knowledge and consent of all parties, as Tenn. Code 62-13-312 requires.
- Hold an active Tennessee MLO license sponsored by a licensed mortgage company.
What the rule says
It is a violation of this chapter for any person subject to this chapter to:
Acting for more than one (1) party in a transaction without the knowledge and consent in writing of all parties for whom the licensee acts
Paying or accepting, giving or charging any undisclosed commission, rebate, compensation or profit or expenditures for a principal or in violation of this chapter
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 Tennessee
Coming soon. Licensing is underway in Tennessee. Availability is subject to required approvals, and launch timing varies by state.