Never sign that contract, it is not normal.
It is not normal to pay commission to a mortgage company.
6% commission total may or may not be "normal".
Find another agent, without a contract, find your own lender.

From experience buying twice, once with a buyer's agent , all I can say is Run from this guy and this mortgage company...and fast! I would NEVER sign anything requiring me to use a specific mortgage company. Ever! That so sounds very wrong to me.
I second what cmarlin20 said. Also here in southern NH, our local selling agents get anywhere btwn 4.5-7% commission which they split up anywhere from 50/50 to 60/40 with the buyer's agent. No part of it is specified to go to any mortgage company. I wouldn't speak further with this guy of I were you. Good luck!

Agree with above posters -- do not sign this agreement !!

This guy sounds more like an Agent's Agent than a Buyers Agent....RUN!

I agree with others. Find another agent. You can do better as this person seems to be getting too many kickbacks. You go with the bank or loan company you want to, you find the home inspector, not who the RE agent wants, you choose the title company or lawyer you want. You pay your agent nothing. If you want FSBO, it is your choice. As I see it your agent helps you buy the house you choose.

So, let's see.
The seller is offering 3% to any buyers agent to bring in a buyer... 50% of that goes to the lender, which takes it down to 1.5%, then the buyers agent is going to split that with you... takes him somewhere close to being broke!

First off, no seller is offering 6% to a buyers agent, more like 3%. So if he states that he is to get 6% commission, guess where the difference is gonna come from?... you!

Git rid of him now, and please tell him exactly why... because he represents the slime of the industry.

I know everyone else has said it already but do not use this agent!!! Listen to everybody here. In my area buyers agents don't usually expect you to sign a contract. And telling you you cannot buy a FSBO? Who in their right mind thinks they have a right to tell someone what houses they can and cannot buy? There are so many houses for sale right now including FSBOs, some even offer buyers agents a little $. This guy is a control freak!! I can't imagine how many people have actually signed with him. This is the craziest thing I've heard of in a while.

Like others have said, steer clear of this guy and the mortgage company.

Basically, you went in to talk to a broker about a mortgage. He set you up with an agent that was going to give him a kickback for referring business to him/her. At best, that agent is going to have divided loyalties.

Below is a sample contract. Note the wording on how the agent gets paid.
http://reddoorrealestatevt.com/virtualoffice_files/Sample%20Buyer%20Agreement.pdf

The normal situation that I've encountered is that the listing agent splits the commission with the agent that the buyer has. In the past, it wasn't common for a buyer to have a contract with a realtor. Now, it seems to be more common (and certainly is something that the buyer's realtor wants). Be careful with this. After spending over a year looking for a specific type of property in a specific area, we finally found the right home. The seller was doing it FSBO and didn't want to pay any commission at all. I did have our agent "help" us and I did pay 1/2 the commission. I didn't have to, but did feel obligated. Had I signed a contract, the commission wouldn't have been optional for me.

Good luck
Susan

rachelh-"In my area buyers agents don't usually expect you to sign a contract. And telling you you cannot buy a FSBO? Who in their right mind thinks they have a right to tell someone what houses they can and cannot buy? There are so many houses for sale right now including FSBOs, some even offer buyers agents a little $. This guy is a control freak!! I can't imagine how many people have actually signed with him. This is the craziest thing I've heard of in a while."

My thoughts exactly. Can't buy a house FSBO? Yikes. This mortgage company sounds like an awful company to do business with. If your having this much trouble with them BEFORE you sign anything, imagine what you might have to look forward to if a house were to go into foreclosure......

A link that might be useful:

Lucrative Fees May Deter Efforts to Alter Loans

www.nytimes.com/2009/07/30/business/30services.html

New poster, no follow up? Are you really here?

If you're still here, please post the name of the mortgage company and real estate agency that asked you to sign this lop-sided contract. They deserve to have their actions exposed.