Official says the department will temporarily allow VA buyers to directly compensate their agent.

The Department of Veterans Affairs 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, a VA official said Tuesday at a Mortgage Bankers Association conference in New York.

Although not an official announcement, the comments from VA Deputy Director of Policy Michelle Corridon were met with relief from the real estate industry, as the VA’s home loan guaranty 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.

 

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