If you believe that the REALTORŽ should be at the center of the transaction, you'll appreciate learning of sensible ways you can make that happen. Becoming your own lender, while complying with local, state, and federal laws is a sure way to pocket more from the transaction while genuinely providing more service to your buyer-borrower.

OnePipeline has a compliance system that makes it easy for Realtors to become loan originators. Depending on the state in which you live, you sign either a service agreement or an employment (part-time) agreement to be eligible. Another perk for employees is that you are eligible for OnePipeline's benefits including a 401K plan, and fully-paid Errors and Omissions insurance, among others.

You can use your ability to originate loans as a profit center, or you can pass a discount along to your customer in the amount you choose. That gives you the control to offer the services you want at the fees you wish to charge - up to a point. OnePipeline has a ceiling on the loan origination fees that can be charged by its Realtor/lenders, unless you are in a state such as Ohio or Indiana that charges more than the typical market of 1.2 percent.

If you are a real estate broker, OnePipeline estimates that you can capture 10 to 15 percent more loans without disrupting your real estate business or adding more costs to your overhead. If you are an agent, you can become an online lender, too. Because so many brokers are signing up in the system, you should contact your broker and tell him/her your plans. If your broker is already on the system, you will automatically be routed through your broker's program, and you will be subject to the splits your broker has outlined.

Not to oversimplify the challenge of meeting compliance regulations, but you can be working your first loan after only a few hours of training. You won't be alone and neither will your customer. You will be walked through every step of the first three transactions that you do. Then, if you still need help, there is a call center available where you can talk to an on-staff loan officer to answer your questions. The automated compliance engine at OnePipeline.com does the rest.

OnePipeline pays for all training.

The steps to becoming an online lender

Call toll free 1-888-222-8419, or click here to go to the OnePipeline Web Registration Site.

Based on the state, download, sign and mail back the appropriate agreement. (service or employment.)

View a 30-minute video at the OnePipeline University, and then participate in a second three-hour course.

Remaining training takes place with an online loan officer while you make your first three loans.

Doing the loan

To protect both the consumer and the loan originator, OnePipeline requires that the borrower sign the following forms:

Disclosures. All Realtors must have a disclosure page. RESPA regulations require that borrowers understand that you may be making money on the transaction and that you are "wearing two hats." This must be printed and signed by the customer.

Prequalification loan selection: To meet RESPA regulations, you must be able to offer your customer multiple lenders. And you must be able to pre-qualify your customer with at least three lenders. OnePipeline loans have no YSP-yield spread premiums, so that the consumer is seeing the same loan a broker would see. The consumer makes the choice and must sign a printed form for the loan s/he selects.

Application: Once a loan product is selected, the application is signed and the loan is automated.

The loan originator is never out of the system which tracks and flags the 10 to 12 benchmarks of the loan. If a stage has not been completed at the appointed time, the system will prompt you to order an inspection or an appraisal. If you don't respond, the system will order the work to be done, but you will lose that portion of the transaction fee. That way the transaction is protected, and the loan has a higher chance of closing without hitches. The Realtor is required to attend closings as an additional service incentive.

How Do You Get Paid?

According to OnePipeline.com, compliance rules allow for more than one party to participate. The real estate Broker/Owner can share in the loan origination revenue stream based on administration of the compliance menu and completing some of those tasks. Another party that could participate is the local mortgage broker or lender who would complete any tasks not completed by the broker or Realtor. This enables the Realtor and broker to be compensated to the extent that they are comfortable participating in the loan transaction.

The Broker/Owner administers the compliance menu in which the real estate agent can participate. Compensating the individual REALTORŽ is still compliance-menu driven and in accordance with actual services performed.

Possible fee and split schedules

One of the key benefits of OnePipeline.com from a compliance point-of-view is the ability of the Automated Compliance Engine (ACE!) to pay both the REALTORŽ and the Broker/Owner a portion of the origination fee

The Broker/Owner can be a support provider and receive 10% of the fee - or be involved in the transaction by actually doing some of the activity items – as described on the compliance menu for that loan. The division of the tasks between Realtor and Broker/Owner must be accomplished as determined by the Broker/Owner, and the Realtor must use that division as the compliance guideline. The Broker/Owner can delegate his or her tasks to be completed by an employee of the firm. If the Realtor's broker is not involved with OnePipeline, the Realtor may collect all the fees for the work s/he does.

Should you do it?

Over the next few years the Internet will change how mortgages are obtained and originated. OnePipeline.com' s unique compliance engines are ahead of the curve. Although other large lenders and companies will offer broker/agent participation opportunities, OnePipeline has the critical mass and head start to make it happen quickly. OnePipeline.com has invested millions in resources to develop an architecture and technology framework that allows agents and brokers, and other loan originators to automate the process. Another advantage is it is a neutral third-party resource.

See Part I: Why REALTORS Should Become Online Lenders

Published: May 23, 2000

Use of this article without permission is a violation of federal copyright laws.

Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.