Buyer Agent Fee: NAR Settlement Guidelines

Buyer’s Agent Fee: National Association of REALTORS® Settlement Guideline

Effective: Immediately

Channels: All

As a result of the NAR settlement and changes to how the buyer’s agent fee is paid, the following guidance is provided to assist with transactions. Please note, the term Buyer is the same as Borrower, and Buyers Agent refers to the realtor representing our borrower. 

Basic Guidelines/Rules:

• Interested Party Contributions (IPC):  Any money given to the buyer from the seller (i.e. Concession, Credit or Contribution) must be counted towards the maximum IPC’s allowed per the loan program.  A buyer’s agent fee paid by the buyer using a credit from the seller is not exempt from being an IPC.
• Disclosure of Buyers Fee:  If the buyer pays any portion of the buyer’s agent fee, the fee must be disclosed on the buyer’s side of the LE/CD.  The fee must also be included in APR as a finance charge.   
• Seller Obligated Fee:  If the seller, per the contract, agrees to pay the buyer’s agent fee to the buyer’s agent or buyer’s agent company, the payment is considered “Seller Obligated”.  Seller obligated fees are not a finance fee to the buyer, and also not included in the APR.
• LSI Payment of Buyers Agent Fee:  LSI will not pay any portion of the buyer’s agent fee.  All requests for a lender credit to pay a buyer’s agent fee will be denied.  

Please refer to the guideline attached which also includes several scenarios.  Gemba Link