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Veterans Can Now Pay Buyer-Broker Commissions
This temporary policy will allow veterans to pay buyer-broker commissions from their VA benefits
Back on May 22, VA Deputy Director of Policy, Michelle Corridon, indicated that the department would temporarily lift the ban on paying commissions. The Department of Veteran Affairs has now made this provision official, as reported by Inman.

Previously, borrowers weren’t allowed to pay buyer-broker commissions, even if they wanted to. They couldn’t use their VA loan benefits to offer brokers compensation for their services. Before the commission lawsuit mayhem, these costs were covered by the sellers.

That’s no longer the case after the NAR settlement. VA is now forced to temporarily change its policies until a more permanent solution is available.

Want to stay up to date with the latest developments regarding the commission lawsuits? Visit Houzeo's YouTube channel for the most important updates!

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The Problem

It is clear that the policy changes proposed by the NAR settlement would disproportionately affect veterans. As VA didn’t allow borrowers to pay buyer brokers, vets would have only two options available to them:

Pay buyer brokers out of pocket

Rely on sellers to voluntarily pay buyer brokers

The NAR settlement forbids any offer of commission on the MLS. It also gives the seller the option to skip paying buyer broker fees. Most sellers are likely to avoid the added expense, which places the burden on the buyers.

VA’s Temporary Solution

The Department has made policy changes to clearly protect veterans and safeguard their interests in the post-settlement landscape. The VA statement says:

Eligible veterans, active-duty service members, and surviving spouses can use their VA home loan benefits to pay buyer broker commissions.

VA encourages veterans to negotiate the fees with the broker directly.

Sellers can still pay buyer broker commission if they wish to.

VA will not treat sellers paying buyer broker commission as a concession.

This temporary policy change offers some much-needed relief to veterans looking to buy a home. If the VA had insisted on retaining the ban on commissions, vets would’ve lost the edge in a competitive market.

We’ll keep you posted on all developments regarding NAR’s settlement through our newsletters.

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