As previously reported [Link: https://www.consumerfinancemonitor.com/2024/06/13/va-announces-temporary-variance-allowing-veterans-to-pay-broker-commissions-and-announces-a-targeted-foreclosure-moratorium/], 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 [Link: https://www.benefits.va.gov/HOMELOANS/documents/circulars/26-24-15.pdf], 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.

[View source.]