HUD Addresses Real Estate Commission on FHA Mortgages
By Rodney Mason, VP of Mtg Lending, AL,AR,AZ,CA,CO,FL,GA,IN,MI,MS,NC,SC,TN,TX,VA,WA
(Guaranteed Rate NMLS# 2611)
Today, the Federal Housing Administration issued guidance regarding the payment of Real Estate Agent commission and forthcoming changes in the real estate industry. This is in response to numerous inquiries received by FHA after the recent settlement proposed by the National Association of REALTORS®. In its announcement, they stated: Since its announcement, FHA has received questions from its stakeholders regarding how the proposed settlement agreement will affect the treatment of seller-paid buyer real estate broker fees in transactions using FHA-insured mortgage financing.Under existing FHA policy, if sellers continue to pay buyer-side real estate agent commissions and fees as a manner of state and local law or custom, and if the commissions and fees are reasonable in amount, exis...
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