The Dual Agent Side Hustle: How Agents Earn More Per Deal Without More Work

Summary

Greg Wearham from the Federal Savings Bank introduces the 'dual employed banker' program, enabling real estate agents to increase their income by becoming licensed to handle mortgages. By making simple referrals to senior bankers, agents can earn 25-30% more per transaction without needing to take additional courses. The program includes tools, apps, and partnerships with senior bankers to manage the mortgage side. It offers nationwide coverage, co-branding opportunities, and ensures compliance with legal standards. This innovative model allows agents to tap into the mortgage market while reducing liability, creating a unique opportunity to boost their revenue.

Takeaways

• 😀 The Dual Employed Banker Program allows real estate agents to earn mortgage commissions without needing a full mortgage license by referring clients to a senior banker at a federally chartered bank.
• 😀 Agents who participate in the program are hired as part-time employees of the Federal Savings Bank and complete a 3-hour training course to get started.
• 😀 By partnering with the bank, agents can earn 25-30% more income per transaction, such as earning $2,500 for a $500,000 mortgage deal on top of their real estate commission.
• 😀 Agents are not required to take a 20-hour mortgage course or pass the state test, thanks to the bank's federally chartered status, which simplifies the licensing process.
• 😀 The program is compliant with government regulations (e.g., Federal Housing Finance Agency), ensuring that agents aren't exposed to liability or legal issues for mortgage transactions.
• 😀 Real estate agents only need to make a ‘constructive referral’ to the senior banker, who handles the rest of the mortgage process, including pre-approvals and underwriting.
• 😀 The program offers various tools and apps like Encompass, Blend, and Outlook to help agents monitor mortgage transactions, but the majority of the work is done by the senior banker.
• 😀 Team leaders can also get licensed and bring their entire team into the program, with the option to set up compensation structures at the team level.
• 😀 Agents can take advantage of co-branding and marketing efforts, particularly around future refinancing opportunities, which can be a lucrative source of business.
• 😀 The Federal Savings Bank handles all compliance issues, and agents are not liable for customer disputes, as any legal concerns fall on the bank rather than the individual agents.

Q & A

What is the main service offered by Greg Wearham and the Federal Savings Bank?

Greg Wearham and the Federal Savings Bank offer a program called 'Dual Employed Banker,' which allows real estate agents to earn compensation from the mortgage side of the business, without needing to become fully licensed mortgage professionals.

How does the 'Dual Employed Banker' program work?

The program hires real estate agents as part-time employees of the bank, allowing them to legally make referrals to a senior banker. The senior banker handles the mortgage portion of the transaction, while the agent earns a commission for their referral.

What is the requirement for a real estate agent to join the program?

Real estate agents must attend a 3-hour course facilitated by the bank, which covers the bank's products and how to use their software systems. After the course, they get their mortgage license and are partnered with a senior banker.

What role does the 'senior banker' play in the program?

The senior banker handles 98% of the mortgage-related work, such as underwriting and approval. The real estate agent's responsibility is limited to making a 'constructive referral' to the senior banker.

How is compliance ensured in the program?

Compliance is maintained through a clear referral process, where the agent makes a constructive referral to the senior banker. All actions are timestamped and documented through the bank’s systems to stay in line with regulations.

How does this program impact a real estate agent's income?

Real estate agents can expect a 25-30% increase in their income by participating in the program, as they earn additional commissions from mortgage transactions on top of their real estate commissions.

What are the key software tools used by agents in the program?

Agents use three primary tools: Outlook for email communication, the Blend app for consumer-facing mortgage applications, and Encompass, which is used for underwriting and fulfillment of mortgage transactions.

How does the program affect a real estate agent's liability?

Real estate agents do not take on any more liability than they already have in their regular real estate business. The bank handles most of the legal responsibilities, including disclosures and mortgage compliance.

What is the financial benefit for real estate agents working in this program?

Real estate agents can earn a commission of approximately 0.5% of the loan amount, in addition to their real estate commission. For example, an agent could earn $2,500 on a $500,000 mortgage transaction.

What types of loans does the Federal Savings Bank offer through this program?

The bank offers a variety of loan types, including VA loans (with 100% financing), conventional loans, and construction-to-permanent loans. The bank is particularly known for its VA loans and competitive interest rates.