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

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

The lender’s employees are prohibited from having multiple roles or multiple sources of compensation, either directly or indirectly, from a single FHA-insured transaction. The lender must require its employees to be its employees exclusively, unless the lender has determined that the employee’s other outside employment, including any self-employment, does not create a prohibited conflict of interest. 

For additional information see Handbook 4000.1 I.A.3.c.iv.(B)(3)(b)(iv)-(v) 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