A HUGE WIN FOR VETERAN HOME BUYERS
In March of this year, the National Association of REALTORS® (NAR) had written a letter to the Veterans Administration urging them to change their policies regarding the VA buyer’s ability to pay for representation in a real estate transaction. The NAR position was that VA buyers often were first-time home buyers who specifically used the GI bill to leverage the $0 downpayment benefit. “Purchasing a home is a challenging process for any buyer, and REALTORS® have specialized education to assist their clients in navigating the home purchase. As fiduciary agents with an agency agreement in place, we are legally bound to represent the best interests of our clients. Home buyers using a VA loan face an even greater level of complexity and absolutely need representation and assistance in navigating a home purchase using the VA loan,” explained Hampton Roads REALTORS® Association (HRRA) President, Kim Georges, of Howard Hanna.
The Hampton Roads REALTORS® were in DC earlier this month to speak directly to federal legislators about the urgency of lifting the VA ban on paying for representation. This situation, that could potentially harm veterans and active-duty military, was created when the NAR agreed to a class action settlement wherein the terms required that offers of compensation could no longer be made through the Multiple Listing Service. Instead, buyers would need to enter into a contract with their agent, which would define what the buyer would pay the agent for their professional representation. Sellers still have the option of agreeing to pay a buyer’s agent for providing a pool of qualified buyers ready to proceed with a transaction. HRRA REALTORS® met with Representative Jen Kiggans and with Representative Bobby Scott’s Legislative Director, Paige Schwartz, to explain the urgency of removing the agent payment ban from the VA loan policies.
On May 22nd, it was announced by the VA Deputy Director, Michelle Corridon, at the Mortgage Bankers Association Conference in New York, that the Department of Veterans Affairs plans to temporarily lift its ban on buyers directly paying for professional real estate representation. According to NAR’s Chief Advocacy Officer, Shannon McGahn, “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. This is also a testament to the thousands of REALTORS® who came to Washington just a few weeks ago with a unified message. Without this change, thousands of veteran buyers could be denied access to professional representation in their pursuit of the American Dream of homeownership. Taking this extra step ensures veterans have the same opportunity as others to compete in a tight housing market. We applaud the VA for recognizing this danger and acting swiftly to protect veterans.”
About the Hampton Roads Realtors® Association
The Hampton Roads REALTORS® Association is an organized group of real estate brokers and agents dedicated to furthering the American Dream of home ownership through protecting private property rights, advancing affordable housing, promoting a vibrant and healthy market, improving the quality of life in the neighborhoods its members serve, and enhancing professional industry standards.
