Despite the growing interest in CLO, most real estate brokerages have yet to implement a CLO system. Some have not done so because they are sorting out the different systems available. Among brokers, CLO is commonly known as a service where the client obtains computer-generated information about alternative loan products for which they may apply. The service may include loan counseling and initiation of a loan application, all done from the real estate sales office. There are mortgage brokerages that are offering a variety of CLO systems for real estate sales offices.
Some systems require little involvement by the real estate salesperson.
Others involve most or all of the services traditionally provided by the mortgage broker, e.g., providing loan product information, taking the loan application, and processing it with the lender through closing. There are exceptions permitting compensation for goods and facilities actually furnished and for services actually performed. The regulations require such compensation to bear a reasonable relationship to the market value of the goods and services. The compensation cannot be based on the value of referrals. These practices are subject to certain disclosures and conditions detailed in the regulations.