VA Introduces Temporary Rule Allowing Buyer-Broker Fees for Veterans Under VA Loan Guidelines

Jun 12, 2024, 05:36 PM

The U.S. Department of Veterans Affairs (VA) has introduced a temporary rule allowing homebuyers using VA home loans to pay certain buyer-broker fees when buying a house. This change, effective this summer, is a response to the National Association of Realtors' commission lawsuit settlement agreement. The temporary rules, first announced in May ahead of Memorial Day, aim to ensure that veterans remain competitive in the home-buying process. The VA is encouraging veterans to negotiate the amount to be paid to their buyer-broker, regardless of whether the seller or buyer pays. NAR President Kevin Sears issued a statement in response to the VA's announcement, and various representatives, including Rep. Mark Alford, Rep. Mann, and Rep. Lou Correa, have pushed for this change to support veterans. The Mortgage Bankers Association recognizes the need to make the VA Home Loan Program more accessible, operationally efficient, flexible, and competitive. Karen Kreutziger, CEO of Flat Branch Home Loans, emphasized the significance of the VA Loan guidelines in making the program more accessible.