Before accepting the claim at face value, ask to see a copy of HUD's approval. Be aware, however, that in many states, individuals that assist borrowers in finding a mortgage loan must be licensed as mortgage brokers. Second, if a real estate agent is to be paid a percentage of the origination fee, they likely will have to do a lot more than merely take a loan application. These duties include counseling borrowers, issuing Good Faith Estimates, and ordering credit reports and appraisals. HUD recognizes however, that reasonable compensation is ultimately a function of the marketplace.
Some programs offer to make real estate agents part-time employees of the lender.
However, only bona fide employees are covered by this exemption. The Internal Revenue Service sets strict standards for employment. Although HUD has never published criteria, it's likely the IRS rules would prevail. However, under the circumstances, the real estate agent should not promote the lender or its services to the customer, and the payment must be made to the agent, regardless of whether the lead ultimately turns into a closed loan. Note, however, that real estate agents may not take loan applications in connection with FHA-insured loans.