203K Loan Real Estate Commission Issue

[Roger Leonard]

So, my friend is closing on a "Officer Next Door" (half price) property via HUD in Los Angeles. The house needed repairs so the standard hud loan did not work. He was placed into a 203k loan. He is about a week from closing and his agent tells him there is a cap on commissions and fees of which only $11000 remain and the sellers agent wants it all, so he might not get paid.

1. Can this jeopardize the closing?

2. Does the listing agent "wants" trump the buyers agent?

3. How would this be resolved, so escrow can close?

4. What should be my friends role (the buyer) in all of this? Is it wrong to ask him to pay his own agent? 

Any input from my BP friends would be greatly appreciated! 

Roger