24-48: Fannie Mae and Freddie Mac Industry Notice: Clarification Regarding Commissions Paid to Real Estate Agents


Fannie Mae and Freddie Mac have both issued recent clarifications on how seller-paid real estate agent commissions are treated in light of recent settlements and ongoing litigation involving the National Association of Realtors (NAR).

There are no immediate changes to either the Fannie Mae or Freddie Mac Selling Guides. If fees and or closing costs paid by the property seller are common and customary fees for the area, then interested party contribution (IPC) limits do not apply.

Fannie Mae and Freddie Mac are closely monitoring the impact of the proposed NAR settlement to determine if updates to current requirements are necessary

Please view the Fannie Mae Selling Notice and the Freddie Mac Industry Letter for more information. These provisions are also detailed in Fannie Mae’s Selling Guide B3-4.1-02, B3-4.1-03, and Freddie Mac’s Guide Section 5501.5.

Please contact your Sales Representative with any questions.