National Association Of Realtors Settlement Could Impact Veteran's Affairs Loans, Experts Say

A recent settlement reached by The National Association of Realtors will change the way closing costs are paid.

Some people are worried about how it’s going to affect people getting home loans.

Some of these loans, like Veteran’s Affairs loans, don’t allow the buyer to pay for closing costs, which is the opposite of what this settlement is trying to accomplish.

This settlement has created a lot of confusion and misinformation.

One of the concerns is how the settlement will affect Veterans using VA loans to get a house.

In the past, the VA has not allowed people who are buying a home to pay for commission.

But the settlement made by the National Association of Realtors says, people selling a home won’t be able to pay it either.

"If you're a veteran and you saw this settlement come through, you're probably going to ask yourself, 'How is this going to impact me?'” said Greg Freeman, the Owner of Scissortail Financial. “I think the answer for that is, we'll see."

Freeman is a mortgage lender who deals with all sorts of loans- including FHA, VA and Native American.

He says it’s important to look at the actual information being released by the National Association of Realtors.

"I think it is incredibly important to talk to somebody that's boots on the ground that has actual, real information,” said Freeman. “It's easy to go off of gossip, it's easy to watch all these different short videos online, but knowing somebody who is reputable and trustworthy I think is going to be critical."

Bryan Sheppard, the President and CEO of Coldwell Banker Select, says to brokers the settlement is confusing.

He says it could leave VA buyers without the option of using a real estate agent.

"VA buyers right now are not able to pay for compensation for their real estate agent to have representation when they're a buyer,” said Sheppard. “In the past, that has been paid for by a seller offering compensation. With these new rule changes, that isn't guaranteed. That's going to put a VA buyer really in a tough spot."

Sheppard hopes the VA and the National Association of Realtors will be able to clear up some of the language of the settlement so Veterans can buy homes by using a realtor.

"I think it's an overlooked segment of our buyer market and it shouldn't be,” said Sheppard. “They should be held up high. They're the ones that fight for our freedom and they're the ones who give us the ability to have homes to buy."

The settlement still has to be approved by a judge, which could happen in mid-July, so these rules have not gone into effect yet.

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