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GSEs clarify interested party contributions

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Both Fannie Mae and Freddie Mac received numerous inquiries concerning the proposed settlement agreement entered into by NAR in the Burnett et al and Moehrl et al cases, subject to court approval.

Both GSEs addressed the current treatment of property seller-paid buyer agent fees under its interested party contribution requirements.

Interested party contributions

In Guide Section 5501.5, property sellers are permitted to make financing concessions toward the Borrower’s Closing Costs in maximum amounts between 2% and 9% of the property value. Fees or costs customarily paid by the property seller according to local convention are not subject to these financing concessions limits. Buyer agent fees have historically been fees customarily paid by the property seller or property seller’s real estate agent, and, as such, they are currently excluded from these financing concession limits. If these fees continue to be customarily paid by the property seller according to local convention, they will not be subject to financing concessions limits.

It is Fannie Mae and Freddie Mac’s standard practice to continuously evaluate their requirements to determine whether updates are appropriate based on changes to the market and industry. Fannie Mae and Freddie Mac will continue to monitor and assess the impact of the proposed NAR settlement and other real estate agent commission lawsuits to determine if any updates to its requirements are necessary.

REALTORS® who have questions about the content of Freddie Mac's Industry Letter can contact their Freddie Mac representative or call the Customer Support Contact Center at 800-FREDDIE.

April 15, 2024


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