DCUC Applauds the Department of Veteran Affairs for Temporary Local Variance for Certain Buyer-Broker Charges
The Defense Credit Union Council (DCUC) provides the following statement in support of the Department of Veteran Affairs (VA) announcement to issue a temporary local variance for charges related to real estate broker or agent (buyer broker) compensation.
“DCUC commends the VA for making this important decision,” said Anthony Hernandez, DCUC president/CEO. “This variance will provide deserving service members and veterans better opportunities to use their VA benefits when purchasing a home.”
The VA published its announcement on June 11, 2024, stating:
“[The] VA regulates fees and charges that may be made against or paid by a Veteran who is using the VA-guaranteed home loan benefit. While VA’s regulation specifies that, generally, a Veteran cannot pay for real estate brokerage charges, the Under Secretary for Benefits (USB) may authorize, in advance, charges that are appropriate for Veterans to pay as proper local variances. Through this Circular, VA is announcing a temporary local variance that will allow Veterans to pay for certain buyer-broker charges. The USB has determined this temporary variance is appropriate to ensure Veterans remain competitive buyers in the rapidly shifting real estate brokerage market. VA will develop a more permanent policy, through a new notice-and-comment rulemaking, as the real estate brokerage market restabilizes and new practices take hold.”
Per the VA, the temporary variance will go into effect on August 10, 2024.