An affiliated business is based on some form of ownership and that isn't mentioned in the question. I also don't believe the points and fees should be an issue because as you do mention "conflicts of interest" this employee should never be on both sides of this loan as a Realtor and as a lender. To do otherwise does promote an unacceptable conflict of interest in my opinion.
This employee cannot be both a realtor and banker on the same deal. That would be self serving and a conflict of interest. If not against your ethics policy, the policy should be updated.