FHA Issues FAQ on NAR Real Estate Commission Proposed Settlement

FHA recently issued an FAQ regarding the impact of the proposed National Association of Realtors (NAR) settlement concerning real estate commissions on FHA’s rules about interested party contributions.     

The FAQ generally states that the proposed settlement does not change FHA’s core rules in this area.  FHA notes in the FAQ that, “if sellers continue to pay buyer-side real estate agent commissions and fees as a matter of state or local law or local custom, and if the commissions and fees are reasonable in amount, existing policy would not treat those payments as interested party contributions provided all other agency requirements are met.”

FHA further states, however, that it will continue to monitor the real estate marketplace for changes made by the NAR settlement for potential impacts to FHA’s policies and will provide additional guidance, if necessary.