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The U.S. Department of Veterans Affairs announced plans to publish a circular that would address the buyer commission prohibition on VA loans.

The circular, which is planned to be issued by June 12, would address the changes to broker commissions enacted by the National Association of Realtors and leading brokerages in the wake of the Sitzer/Burnett settlement. Commissions are prohibited on VA loan originations, which could make these products less attractive when the changes in the broker commission structure goes into effect.

Michelle Corridon, the VA’s deputy director for policy, announced the department’s plans during the Mortgage Bankers Association’s Secondary and Capital Markets Conference in New York City. Corridon stressed the circular was designed to “bridge the gap” between current policy and the establishment of a new policy regarding commissions.

“That’s the heart of the circular, and then we will start rulemaking, and that’ll be the full set of rulemaking, proposal, comment period,” she said.