Jack McCarty

Are rebates income and are 1099's issued? If not, is the income to the agent for 1099 income or income to the company? Can a rebate be used for closing costs when it has not yet been paid and therefore are not verifiable funds? I thought the underwriting guidelines were fairly strict on funds to close especially considering the recent history of the mortgage/real estate problems. It seems this system could be used to create buyers from unqualified parties. How is it shown on the HUD if the listing company, who collects the commission, is not the rebating company. Rebates may be great but do they pass the RESPA test in all cases?