AC-018 Important VA Temporary Local Variance for Certain Buyer-Broker Charges
NOTICE TO ALL CUSTOMERS
Important VA Temporary Local Variance for Certain Buyer-Broker Charges
FLCBank would like to notify customers of VA’s Temporary local variance for certain buyer-broker charges (including commissions and any other broker-related fees) which became effective for purchase contracts dated on or after August 10, 2024, subject to the following requirements for permissibility.
- Loan Origination and Underwriting Criteria
- The property being purchased by the Veteran is an area where listing brokers are prohibited from setting buyer-broker compensation through multiple listing postings; or buyer-broker compensation cannot be established by or flow through the listing broker.
- The Veteran/borrower buyer-broker charges cannot be included in the loan amount.
- The Veteran/borrower buyer-broker charges paid or to be paid by the Veteran are to be considered when determining whether the Veteran has sufficient liquid assets to close the loan.
- Because VA considers the buyer-broker representation agreement to be part of the sales contract, VA expects the loan originator/lender to upload the agreement when requesting an appraisal in WebGLY, and the lender must retain a copy of the agreement in the credit documents of the loan file.