BSI is the 1st <and only> lienholder.  They acquired servicing from Flagstar.  The loan itself was also bought by a new entity, who converted it from FHA to non-FHA.

The purchase agreement, estimated HUD and proof of Buyer funds were submitted to BSI. Received written short sale approval from BSI.  AFTER receiving the approval letter, I received an email message stating that I needed to sign an addendum to the listing agreement to assign 1/3 of the listing side commission to a 3rd party (Entra Asset Management) for unspecified services rendered, plus a $250 processing fee.

I have argued that this is not right -- the approval was based upon the submitted HUD which did not include these fees.  Furthermore, by reducing commission -- and thereby increasing net proceeds on the Seller's side of the HUD -- this could be considered a "rebate".  Violating rebate prohibitions may be subject to civil penalties, may be considered an illegal kickback under USC ss 2607 and may be a violation of the Real Estate Settlement Procedures Act (RESPA).

Has anyone else seen this with BSI?

I will follow up with the group with final resolution on this one.