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

No.  Mortgagee 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.
 
A Mortgagee may not pay anything of value, directly or indirectly, in connection with any insured mortgage transaction or transactions to any person or entity if such person or entity has received any other consideration from the mortgagor, seller, builder, or any other person for services related to such transactions or related to the purchase or sale of the mortgaged property.
 
See the conflict of interest regulation at 24 CFR ยง 202.5(l) - Federal Regulations can be viewed at: http://www.ecfr.gov/cgi-bin/ECFR?page=browse
 
For additional information see Handbook 4000.1 I.A.3.c.iv(B)(3)(b)(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