Fannie Mae & Freddie Mac Announcement after NAR Settlement

Fannie Mae & Freddie Mac have made an announcement clarifying some key details after the recent NAR settlement.  

Key highlights of the announcement:

Seller Concessions:  They clarified that property sellers can still offer to cover buyer’s agents fees, though these won’t count towards financing concession limits. This aims to protect first-time homebuyers.

Buyer’s Agent Fees:  They clarified that if buyer’s agent fees are customary in that area, they will permit their inclusion in seller concessions. This will influence how funds are allocated toward actual closing costs or other expenses.

Interested Party Contributions (IPCs):  They clarified that a payment from the seller to cover the buyer’s agent fee (IPC) is allowed if customary in the area without affecting the seller concession limit. This change is poised to maintain a more business as usual for most Real Estate transactions.

We are monitoring how these changes will apply to FHA, VA & USDA loans and will continue to keep you updated to any applicable changes to buyers and sellers as the dust settles after this recent NAR announcement.