The Washington Report

February 12, 2024

In This Issue

VA (Veterans Administration) Housing
NAR Submits Comments on Veterans Affairs' Minimum Property Requirements

Worker Classification (independent contractor v. employee)
NAR Submits Letters to U.S. Department of Labor Regarding Final Rule

 

VA (Veterans Administration) Housing


NAR Submits Comments on Veterans Affairs' Minimum Property Requirements

NAR submitted comments in response to an advanced notice of proposed rulemaking (ANPR) from the U.S. Department of Veterans Affairs (VA). The ANPR dealt with the VA’s minimum property requirements (MPRs).

The MPRs are intended to ensure that VA borrowers have safe and secure housing. However, REALTORS® have observed that they can be, or are perceived by many, as being onerous, unnecessary, and push costs onto sellers. As a result, many sellers avoid buyers using VA financing putting these buyers at a disadvantage relative to buyers using financing from Fannie Mae or Freddie Mac.

NAR recommended adopting a framework of minimum standards that are similar to those of Fannie Mae and Freddie Mac. This change would eliminate the misperception issue and the competitive disadvantage it creates.  It would also help create a market-wide standard that would eliminate confusion.

Ken Fears, kfears@nar.realtor, 202-383-1066

back to top

 

Worker Classification (independent contractor v. employee)


NAR Submits Letters to U.S. Department of Labor Regarding Final Rule

NAR submitted two letters to the U.S. Department of Labor (DOL)—one standalone letter, and one joint letter along with the Direct Seller Association (DSA)—to express concerns regarding the Employee or Independent Contractor Classification Under the Fair Labor Standards Act new rule, and how it may impact real estate professionals.

NAR is requesting that the Department of Labor delay implementation of the rule until the Department issues additional guidance. NAR also requested industry specific guidance that considers the Internal Revenue Code (IRC) carve out for real estate agents, and that recognizes state laws governing how real estate professionals should be classified.

NAR will continue in its advocacy efforts on worker classification matters impacting the real estate industry.

Nia Duggins, nduggins@nar.realtor, 202-383-1085

back to top