All borrowers and consultants must sign certifications to ensure that there are no identity-of-interest issues between the parties participating in the 203(k) transaction. Sales transactions between family members are permitted. The mortgagee must ensure there are no other instances of Identity of Interest or conflict of interest between parties in the 203(k) transaction. The borrower and the 203(k) consultant must each sign an Identity-of- Interest certification that is placed in the case binder.
If the borrower selected a 203(k) consultant to perform a feasibility study, the mortgagee may select the same 203(k) consultant for the project without creating an Identity of Interest.
For additional information see Handbook 4000.1 II.A.8.a.xiv.(A)(1) available at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh