How to work with realtors: the partnership that sustains your career (without breaking RESPA)

If there's one relationship that defines a loan officer's career, it's the one built with realtors. They're with the buyer from day one and, when they trust you, they recommend you again and again. But that trust can't be bought: it's earned one loan at a time.

What a realtor needs from their loan officer

• Fast, solid pre-approvals. A letter that holds up in underwriting is worth more than a quick one.
• Availability when there's an offer. Offers get written at night and on weekends. If you don't answer, the agent calls someone else.
• Communication without being asked. Appraisal ordered, appraisal in, conditions, clear to close: every milestone, in one clear line.
• Closing on time. Nothing hurts a relationship more than a closing date that slips without warning.
• Taking care of their client. The buyer is the agent's reputation. Serve them well and the agent wins too.

How to approach a realtor

1. Do your homework. Look at what they sell, in which areas and to which kind of buyer.
2. Offer something concrete. “I can review your buyers' credit and give you a plan within 24 hours” beats “let's do business”.
3. Start with one client. Ask them to let you help one difficult buyer. That file is your job interview.
4. Educate their clients. A buyer workshop in Spanish, taught together, creates value for both of you and for the community.

During the loan: the communication rhythm

Agree from the start on how and when you'll update them. A simple rule that works: same-day notice at each major milestone and a short weekly summary even when nothing changed. Protect the client's privacy: share the status of the process, not their personal financial details without their permission.

What the law doesn't allow: RESPA Section 8

RESPA prohibits giving or receiving anything of value in exchange for referring mortgage business: money, significant gifts, paying the agent's personal expenses or giving them free advertising in exchange for sending you clients.

Some practices can be valid when structured properly:

• Co-marketing: a joint ad where each party pays the share that corresponds to its space and benefit.
• Marketing services agreements (MSAs): the CFPB has explained that paying for real marketing services at fair market value may be permitted, but paying for referrals is not. These agreements carry high risk and must be reviewed by compliance.
• Normal business courtesies: a coffee or a working meeting, as long as they aren't conditioned on receiving clients.

Rule of thumb: if you wouldn't be comfortable explaining a payment to a regulator, don't make it. And before any marketing arrangement with an agent, talk to your company's compliance team.

How to know if the partnership works

Track for each realtor: how many clients they sent, how many got pre-approved, how many closed and how fast. Those numbers tell you where to spend more time and where to improve your service. With five active agents who trust you, you have the foundation of a solid career.