DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 24 CFR Part 203

[Docket No. FR-5087-F-02]

RIN 2502-AI52

Standards for Mortgagor's Investment in Mortgaged Property

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing

Commissioner, HUD.

ACTION: Final rule.         

Comment: Real estate agents should be permitted to use their

commission to fund the downpayment where the real estate agent is the

buyer/mortgagor, because the commission is earned, and not a seller

contribution or gift.

HUD response: The circumstance described by this comment are not

affected by this rule, because a borrower's earned income, such as a

real estate agent's commission, is a permissible source of downpayment.

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