Statement from the Federal Housing Administration on Seller-Paid Commissions

In response to questions about how the proposed nationwide National Association of Realtors settlement would affect the treatment of seller-paid real estate broker fees for buyers under its home loan program, the Federal Housing Administration (FHA) issued the following clarifying statement:

Under existing FHA policy, if sellers continue to pay buyer-side real estate agent commissions and fees as a matter of state or local law or local custom, and if the commissions and fees are reasonable in amount, existing policy would not treat those payments as interested party contributions provided all other requirements are met.

FHA will closely monitor the real estate marketplace for changes resulting from the settlement and will address additional questions as they develop.