[saul]

Hello Amir,
I have come across these programs. The seller "lends" their equity to a "payoff entity", who takes a percentage for facilitating the transaction. At closing , the gifted down payment is shown as a payoff by the seller to the facilitating entity.

The jury is out on this, I've heard of no determination that it IS RESPA compliant. Those I know have taken the position that, as long as everything is disclosed to all parties, especially the lender doing the purchase money mortgage, then it is OK to do the transaction.
See you again