Fannie and Freddie Announcement

Hey everyone! Big news in the world of real estate! Fannie Mae and Freddie Mac just dropped some guidance that's shaking things up for buyer's agent commissions. Here's the scoop:

So, you know how property sellers can help out with closing costs? Well, typically, they can pitch in anywhere from 2% to 9% of the property value. But here's the twist: buyer agent fees, historically covered by the seller, won't be included in these concessions anymore. Plus, Fannie Mae and Freddie Mac have decided not to count buyer's agent commissions as part of the interest part of the loan.

This move comes after some back-and-forth with the National Association of Realtors and a settlement agreement on commission lawsuits. Even though agents won't be listing offers of compensation on the MLS anymore, sellers can still offer to cover the buyer's agent fees if they want to.

Now, NAR and the Mortgage Bankers Association have been in talks with the big names in housing finance to clear things up. FHA Commissioner Julia Gordon confirmed that if sellers keep footing the bill for buyer broker commissions, it won't count as an interested party contribution.

But wait, there's more! The Community Home Lenders Association is on board, happy to see Fannie Mae's clarification to protect first-time homebuyers. And the American Real Estate Association is cheering too, hoping for a similar setup for buyers themselves.

Exciting times in the housing market, huh? It's like a whole new ball game out there!

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