Lender paid broker compensation with rate buy down

Posted By: West Coast Comp

Lender paid broker compensation with rate buy down - 05/11/11 07:43 PM

OK So hopefully I'm just over thinking this, but here goes.

Is it OK to have lender paid broker compensation when the borrower pays for a rate buy down? and if so do you "net" the number in box 2 of the GFE and line 802 of the HUD1?

I ask due to HUD's previous prohibition on YSP and rate buy down (Q&A GFE box 2 #2). Yes I know it is not the same but since when does HUD make sense?

Thanks in advance for your opinions.
Posted By: Mr. E.

Re: Lender paid broker compensation with rate buy down - 05/12/11 06:18 PM

Yes. That is how we do it.
Posted By: West Coast Comp

Re: Lender paid broker compensation with rate buy down - 05/13/11 09:37 PM

Thanks Yaz