Veterans Affairs Department to Address Veterans’ Buyer Commission Prohibition

(Image courtesy of Connor Danylenko/

NEW YORK–The U.S. Department of Veterans Affairs will issue a circular by June 12 that “bridges the gap” on the buyer commission prohibition–a move for which MBA has advocated for months and welcomes.

Currently, the VA prohibits Veterans from paying fees or commissions to real estate agents or brokers in relation to a VA home loan. But because of the recent court verdict concerning the National Association of Realtors’ rules regarding buyer real estate agent compensation, Veteran borrowers face a distinct disadvantage as they cannot compensate a real estate agent to guide them through the home-buying process. But on Tuesday at MBA’s Secondary and Capital Markets Conference and Expo, U.S. Department of Veterans Affairs Deputy Director for Policy Michelle C. Corridon announced the VA will release a circular by June 12 to address the buyer commission prohibition. The circular will be in place while a formal rulemaking process occurs.

MBA has long advocated for such a move, including in a letter it sent to the VA on April 3, 2024. “As we have previously stressed in our discussions on this issue, MBA urges the VA to amend its regulations to allow Veteran borrowers to pay reasonable and customary fees and commissions to retain agents that will represent their interests in the transaction,” the letter said. “If the VA believes it must go through the rulemaking process to amend its regulation, MBA recommends that the VA release an Interim Final Rule to ensure that veterans seeking to use their VA benefits remain competitive throughout the comment period and rulemaking process.”