Approval conditions came back with "Fha will not pay buyer broker commission because buyer's broker related to buyer."
I knew this was so with seller's broker, but buyer's broker? Any thoughts on this?
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It is in the Mortgage Letter 2008-43, Dated December 24, 2008. Page 11 . You may be able to find a copy in the FHA section of this website. I hope this helps.
Use of Real Estate Broker
".............The broker/agent selected should have no conflict of interest with the mortgagor, the mortgagee, the appraiser or the purchaser associated with the PFS transaction. Any conflict of interest, appearance of a conflict, or self-dealing by any of the parties to the transaction is strictly prohibited. A broker/agent shall never be permitted to claim a sales commission on a PFS of his or her own property or that of an immediate family member (e.g., spouse, sibling, parent, or child).
I'm fairly certain this is talking about the Listing Agent, not Buyer's Agent.
humm, I thought this was the case, but the negotiator said fha wouldn't allow buyer rep to be paid a commission if representing a family member. This is a DHI Fha mortgage. So we were going to have to put in in QBs name.
wow, that helps alot. Thanks so much! I love this site! So much help!