As previously reported, in connection with its guaranteed home loan program, in June 2024 the Department of Veterans Affairs (VA) adopted a temporary local variance allowing veterans to pay the commission of the real estate broker or agent assisting them (a “buyer-broker”) in the purchase of a home. In Circular 26-24-15, the VA announced an enhancement made to the Issue Guaranty screen in VA’s WebLGY system related to veteran-paid buyer-broker charges.
The VA released the enhancement on July 16, 2024, to collect the amount of veteran-paid buyer-broker charges. The VA advises that lenders are expected to indicate if the veteran paid any buyer-broker charges, and, if so, they must indicate the total amount paid in the applicable fields when requesting the Loan Guaranty Certificate (LGC) on VA-guaranteed purchase loans. The recent changes apply to buyer-broker charges paid by veterans on purchase contracts executed on or after August 10, 2024.