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.
Tags:
Is BSI still requiring this 1%?
Brian - Was it listed on the HUD, how did this come about? I may cancel my listing in this case.
Can the buyer pay the 1%?
Does anyone have any other experiences similar to this, where they have been asked to redirect a portion of the commission to a third party entity, or a real estate broker not involved with the procurement of an offer? If so, please contact me ASAP.
Sean Ryan
Coast Realty Solutions
(800) 585-4013
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