Is this Viable?

[bradbe]

What is the name of your state? CO

I have a friend who has a relative who is a mortgage broker. This relative does the following: Purchases a relatively large house for himself, then receives the relatively substantial commission (him being the mortgage broker for the loan). He then uses that commission to pay the mortgage payments for about 6 months. Then, after 6 months, he refinances (with himself as the mortgage broker again) and gets a new substantial commission which he uses to pay the mortgage payments for the next 6 months. Repeat over and over.

Is this legal? Is there a reason why this is not okay?

thanks in advance.

 

[MortgageGuru]

Aside from what is normally considered a conflict of interest, if he is the broker then it would be up to the lender to decide if they wanted to do the loan or not.