If you help clients get loans, you need to be careful you don’t end up classified as a mortgage loan originator (MLO) — because you’d be unlicensed and in big trouble.

Under the SAFE Act, the State Corporation Commission sets requirements for MLOs, and it requires anyone who helps someone procure a mortgage to be licensed as one. The way the rule was worded apparently implied that a Realtor who gave advice or recommendations to clients about loans might find herself classified as an MLO and thus need a license.

But VAR worked with the SCC to make sure that Realtors who offered occasional assistance — the kind a salesman might offer to a customer or client — would be exempt from the SAFE Act’s regulations.

Here’s the important part: There is a limitation to the exemption. If you are compensated in any way by the lender, a mortgage broker, or other mortgage loan originator — or someone who works for one of them — you are considered a mortgage loan originator (MLO) and are subject to the SAFE Act and all the other SCC rules for MLOs.

That’s probably something you want to avoid.