11.5.2 Broker’s Fees

A. Fees to mortgage brokers are allowed so long as they are disclosed in the Underwriting Narrative and form HUD-92434M (or form HUD-92455M, as appropriate), there is no identity of interest between the mortgage broker or its affiliates, or the Lender and its affiliates, and the Borrower or its affiliates, and the broker is actively engaged in the business of mortgage loan origination.

B. Referral fees to other parties, such as consultants, Management Agents, or entities or individuals with any identity of interest with the Borrower or its affiliates are prohibited.

C. Lender or affiliates of Lenders may not pay anything of value directly or indirectly to any person or entity in connection with an insured transaction if the person or entity has received any other compensation from Borrower, seller, builder or any other person for services related to the transaction, or related to the purchase or sale of the mortgaged property, except as approved by the Director of Multifamily Production in HUD Headquarters. See 24 CFR 202.5(l). Refer also to Chapter 2, Section 2.4 of the MAP Guide.

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Chapter 11 Lender Underwriting, HUD Review and Closing

11.6 Title Matters

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