# Can a mortgage agent do their own mortgage?



## Fain (Oct 11, 2009)

Hello, 

Does anyone know if a mortgage agent can do their own deals and keep the commission? Are there any complications at all?

Thanks,


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## Just a Guy (Mar 27, 2012)

I'd say, if a realtor can sell his own place and "keep" his commission, that there would be no legal issue....but I'm not an expert in this.


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## Letran (Apr 7, 2014)

I'm with Just a Guy, I do not see a conflict. the commission comes from the transaction regardless who did it. I'm also not an expert on the topic


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## birdman (Feb 12, 2013)

What is a "mortgage agent"? Are you perhaps referring to a "mortgage broker" or maybe a "real estate agent" ?


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## Mortgage u/w (Feb 6, 2014)

Depends the lender but generally, no. The mortgage industry has created a technique known as Agent Pooling. In order for the smaller mortgage broker to gain access to the best rates and build an instant relationship with a lender, they will 'pool' with the larger or established brokers and submit deals through them. So basically, as long as the mortgage broker's own deal is submitted through the 'pooler' (as its known), the pooler gets the commission and passes it on.


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## Fain (Oct 11, 2009)

frase said:


> What is a "mortgage agent"? Are you perhaps referring to a "mortgage broker" or maybe a "real estate agent" ?


Neither of these. See below for details

What’s the difference between a Mortgage Broker and a Mortgage Agent?

A licensed Mortgage Agent in Ontario can trade in mortgages as can a licensed Mortgage Broker. There are four, significant differences between the two licences:

A Mortgage Broker may supervise Mortgage Agents, whereas a Mortgage Agent cannot;
Certain disclosures to investors may not be made by Mortgage Agents;
A Mortgage Broker may hold the title of Principal Broker, who is the chief compliance officer of a licensed Mortgage Brokerage;
A Mortgage Agent may not apply for a Mortgage Brokerage licence.


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## Fain (Oct 11, 2009)

Mortgage u/w said:


> Depends the lender but generally, no. The mortgage industry has created a technique known as Agent Pooling. In order for the smaller mortgage broker to gain access to the best rates and build an instant relationship with a lender, they will 'pool' with the larger or established brokers and submit deals through them. So basically, as long as the mortgage broker's own deal is submitted through the 'pooler' (as its known), the pooler gets the commission and passes it on.


Just want to clarify a bit more. So a mortgage agent joins let's say Dominion Lending(a mortgage brokerage) which does thousands of mortgages and has relationships with 30 or so lenders they have access to, you say he will get refused by most of these lenders that Dominion has lender relationship agreements with? Nevermind about a smaller less established mortgage brokerage but a new mortgage agent joining an already Established mortgage brokerage.


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## birdman (Feb 12, 2013)

Thanks Fain. I live in BC and our legislation is different and makes no reference to a mortgage agent.


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## dougboswell (Oct 25, 2010)

frase said:


> Thanks Fain. I live in BC and our legislation is different and makes no reference to a mortgage agent.


In Ontario you must be licensed with the Ontario Financial Securities of Ontario to trade in mortgages. An agent has to be with a brokerage. All applications to a lender are submitted under the brokerage's owner who is technically responsible for all agents and their applications.


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## Mortgage u/w (Feb 6, 2014)

Fain said:


> Just want to clarify a bit more. So a mortgage agent joins let's say Dominion Lending(a mortgage brokerage) which does thousands of mortgages and has relationships with 30 or so lenders they have access to, you say he will get refused by most of these lenders that Dominion has lender relationship agreements with? Nevermind about a smaller less established mortgage brokerage but a new mortgage agent joining an already Established mortgage brokerage.


Not that he will get refused but he will simply have to change the way the file is submitted - where it is submitted under the brokerage 'pooler' name and he is the 'pooling' agent. Again, not all lenders will enforce this but I believe most will - either way, the broker will get a commission for his own deal.


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## CharlesF.Donahue (Jan 7, 2015)

It depends upon the investors. I am not a big fan of real estate agent and its commission. He will definitely follow the rules of investment.


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