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.