NAR’s Home Finance Resource Certification presented by Deb Killian

Are Your MLOs Truly Independent Contractors?

Many mortgage companies classify Mortgage Loan Originators (MLOs) as independent contractors. However, federal laws—including the Department of Labor’s guidelines, IRS rulings, and the SAFE Act—suggest otherwise. These regulations emphasize that MLOs often function as employees due to factors like company control, lack of independent business operations, and mandatory sponsorship requirements. Misclassification can lead to significant legal and financial repercussions.

Read our latest blog post to understand the implications and ensure your compliance.