VA to issue temporary measure to address real estate agent fees

U.S. Department of Veterans Affairs temporarily eases restrictions Policy Restrictions on Fee Payments This puts buyers using the company’s loans at a competitive disadvantage.

change point Revealed from a high-profile incident Overturned common practice in determining brokerage commissions for several real estate brokerages and the National Association of Realtors. Current regulations prohibit charging fees on VA loan originations, and considering this change could reduce the value of those offers in the eyes of real estate agents and agents.

In an announcement made during a panel discussion on Tuesday, At the Mortgage Bankers Association’s Distribution and Capital Markets Conference The department announced it would soon issue a circular in New York City aimed at temporarily removing restrictive language until a new policy is enacted.

“We knew at some point that we wanted to protect our veterans as much as possible,” said Michelle Corridon, deputy director for policy at the Veterans Administration. “We want them to be able to exercise their right to buy a home on the market.”

Between now and June 12, the VA plans to issue a circular providing a “temporary bridge” to remove that language.

“That’s the crux of the circular, and then we start the rulemaking, and then the rulemaking, proposal and comment period are all completed,” she added.

Following an initial verdict in favor of the plaintiffs in a case involving multiple real estate brokers commonly referred to as the Sitzer/Barnett case, certain defendants, including Remax, Keller Williams, and Anywhere, ruled in favor of the side. Settlement approved earlier this month.

After the initial settlement was announced earlier this year, trade groups representing the mortgage industry, including the MBA and Community Home Lenders of America, Regulators urged to address impacts immediately The new rules will apply to VA borrowers.

In a statement issued after the panel meeting, the MBA welcomed the announcement.

“As we have previously emphasized, failing to take action will place VA buyers at a significant disadvantage, especially in today’s tight inventory market,” the trade group said.