The Department of Veterans Affairs (VA) plans to temporarily lift its ban on buyers directly paying for professional real estate representation until the agency deems it necessary to engage in a formal rulemaking process, according to comments from VA deputy director of policy Michelle Corridon. Her remarks were met with relief from the real estate industry, as the VA’s home loan guarantee is the only loan program with this explicit prohibition. Veteran buyers have limited options in situations where the seller makes no offer of compensation to the buyer’s agent, potentially leaving veterans without professional representation or forcing them to switch to less favorable loan products. “NAR launched an all-hands advocacy effort on this issue, meeting with VA officials, engaging with lawmakers and rallying our industry partners to ensure this prohibition was lifted,” said Shannon McGahn, chief advocacy officer at the National Association of Realtors. The change would ensure veterans have the same opportunity as others to compete in a tight housing market, McGahn said.
Source: NAR; 5/21/2024