Can a loan originator with a real estate license represent the buyer in a purchase transaction?

The Mortgagee must require its employees to be its employees exclusively, unless the Mortgagee determines the employee’s other outside employment, including any self employment, does not create a prohibited conflict of interest. 

Employees are prohibited from having multiple roles in a single FHA-insured transaction. Employees are prohibited from having multiple sources of compensation, either directly or indirectly, from a single FHA-insured transaction. 

For additional information see Handbook 4000.1 I.A.3.c.iv.(B)(3)(b)(iv)-(v) available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-05113