Posted on May 18, 2024
NAR Lawsuit: How it Affects Military Home Ownership
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MILLIONS OF VETERANS IMPACTED WHILE LAWYER'S MAKE MILLIONS
The video is a high level evaluation of how this lawsuit will affect veterans.
My research has looked into athorative resources to provide a picture of what this means to our Veterans. I found the following:
The antitrust case against the National Association of Realtors (NAR) could potentially have a significant impact on veterans trying to purchase a home using the VA home loan program. This is because the VA loan program prohibits the veteran buyer from paying real estate commissions or fees to the buyer's agent.[1][2][7]
If the antitrust case leads to changes that require home buyers to directly pay commissions to the buyer's agent, it will disadvantage veteran buyers using VA loans.
The Impact to Veterans
- The VA loan rules currently allow the seller to pay the commission for both the listing agent and buyer's agent through the offer of compensation on the MLS listing.[2]
- Last year, the average VA purchase loan was about $370,000. Based on that figure, a VA buyer would need more than $11,000 in cash to pay a 3% real estate agent commission out of pocket.
- If this commission structure is dismantled due to the antitrust case, sellers may be less willing to accept offers from VA buyers who cannot pay the buyer's agent commission.[2]
- This could marginalize VA buyers and make it more difficult for them to have their offers accepted by sellers, reducing access to available housing inventory.[2]
- Brendan McKay, president for advocacy at the Association of Independent Mortgage Experts, warned that changing the commission structure "could discourage sellers from accepting offers with that VA financing."[2]
- The National Association of Mortgage Brokers has also raised concerns that requiring buyers to pay commissions could negatively impact low-to-moderate income buyers like veterans.[2][7]
In essence, if the antitrust lawsuit results in buyers having to directly compensate their real estate agent, it could create barriers for veteran buyers using VA loans that currently prohibit them from paying such commissions. This could put VA buyers at a disadvantage in the housing market.[1][2]
NAR settlement update: It states the MLS' that have opted into the settlement agreement have been extended to September 16, 2024. It means the changes to the MLS that eliminate the field indicating seller paid buyer commission rate must be completed by that date.[6]
Citations:
[1] https://lawreview.syr.edu/1-8-billion-is-only-the-beginning-how-burnett-v-nar-could-change-the-real-estate-industry/
[2] https://www.nationalmortgagenews.com/list/what-you-need-to-know-about-recent-broker-commission-cases
[3] https://www.troyortizlaw.com/insights/exploring-burnett-v-national-association-of-realtors
[4] https://battaglia.law/burnett-v-national-association-of-realtors-how-a-1-8-billion-dollar-verdict-may-reshape-an-entire-industry/
[5] https://www.realestatecommissionlitigation.com
[6] https://www.mow.uscourts.gov/ca-cases/19-cv-332
[7] https://www.nar.realtor/magazine/real-estate-news/law-and-ethics/the-truth-about-the-nar-settlement-agreement
Legal Fees for Attorney’s Class Action Suit
Based on the search results, there is no specific estimate provided for how much the lawyers will be awarded from the $418 million class action settlement between the National Association of Realtors (NAR) and the home sellers. However, some insights can be gathered:
1. While an exact figure is not provided, the search results strongly suggest that the plaintiffs' lawyers will likely be awarded between 25-35% of the $418 million NAR settlement, which could amount to around $104-146 million in attorneys' fees based on the typical contingency fee percentages in class action suits.
2. The people in the represented in the class action suit are likely to receive less than $20 dollars for their transaction.[1] They are already starting similar class actions in other parts of the United States.
Citations:
[1] https://www.bizjournals.com/bizjournals/news/2024/03/19/nar-lawsuit-settlement-payout-claim-remax-anywhere.html
[2] https://www.reuters.com/legal/litigation/brokerages-push-undo-18-bln-verdict-real-estate-commissions-case-2024-01-09/
[3] https://www.nar.realtor/competition-in-real-estate/burnett-trial-updates (Trial Updates)
Possible Solutions
• Include legislative or policy adjustments to ensure that VA loan benefits fully protect Veteran homebuyers in this new landscape.
• Real estate commissions become an allowable fee for VA buyers, which could give them the same flexibility as their civilian counterparts.
President Biden
President Biden’s remarked that this will lower housing costs for American families. POTUS repeated incorrect claims that the recently announced settlement agreement allows Americans to negotiate commissions for the first time. Commissions were already negotiable before this resolution was reached and will continue to be negotiable as they have been in the past. [1]
Citation:
1, https://www.nar.realtor/newsroom/nar-responds-to-president-joe-bidens-remarks-on-lowering-housing-costs-for-american-families.
Resource
VA Home Loan Guaranty Buyer’s Guide – Version: April 2022gf (PDF File)
https://tinyurl.com/mscjf9zm
COL Randall C. COL Jean (John) F. B. @Lt Col Charlie Lt Col Charlie Brown LTC Marc King LTC David Brown MAJ Dale E. Wilson, Ph.D. CSM Charles Hayden CSM Mike Maynard MSG Roy Cheever SFC John Davis Cpl Vic Burk SGT Michael Hamrac, MBA, MRP, GRI, REALTOR® SPC Douglas Bolton COL Mikel J. Burroughs
The video is a high level evaluation of how this lawsuit will affect veterans.
My research has looked into athorative resources to provide a picture of what this means to our Veterans. I found the following:
The antitrust case against the National Association of Realtors (NAR) could potentially have a significant impact on veterans trying to purchase a home using the VA home loan program. This is because the VA loan program prohibits the veteran buyer from paying real estate commissions or fees to the buyer's agent.[1][2][7]
If the antitrust case leads to changes that require home buyers to directly pay commissions to the buyer's agent, it will disadvantage veteran buyers using VA loans.
The Impact to Veterans
- The VA loan rules currently allow the seller to pay the commission for both the listing agent and buyer's agent through the offer of compensation on the MLS listing.[2]
- Last year, the average VA purchase loan was about $370,000. Based on that figure, a VA buyer would need more than $11,000 in cash to pay a 3% real estate agent commission out of pocket.
- If this commission structure is dismantled due to the antitrust case, sellers may be less willing to accept offers from VA buyers who cannot pay the buyer's agent commission.[2]
- This could marginalize VA buyers and make it more difficult for them to have their offers accepted by sellers, reducing access to available housing inventory.[2]
- Brendan McKay, president for advocacy at the Association of Independent Mortgage Experts, warned that changing the commission structure "could discourage sellers from accepting offers with that VA financing."[2]
- The National Association of Mortgage Brokers has also raised concerns that requiring buyers to pay commissions could negatively impact low-to-moderate income buyers like veterans.[2][7]
In essence, if the antitrust lawsuit results in buyers having to directly compensate their real estate agent, it could create barriers for veteran buyers using VA loans that currently prohibit them from paying such commissions. This could put VA buyers at a disadvantage in the housing market.[1][2]
NAR settlement update: It states the MLS' that have opted into the settlement agreement have been extended to September 16, 2024. It means the changes to the MLS that eliminate the field indicating seller paid buyer commission rate must be completed by that date.[6]
Citations:
[1] https://lawreview.syr.edu/1-8-billion-is-only-the-beginning-how-burnett-v-nar-could-change-the-real-estate-industry/
[2] https://www.nationalmortgagenews.com/list/what-you-need-to-know-about-recent-broker-commission-cases
[3] https://www.troyortizlaw.com/insights/exploring-burnett-v-national-association-of-realtors
[4] https://battaglia.law/burnett-v-national-association-of-realtors-how-a-1-8-billion-dollar-verdict-may-reshape-an-entire-industry/
[5] https://www.realestatecommissionlitigation.com
[6] https://www.mow.uscourts.gov/ca-cases/19-cv-332
[7] https://www.nar.realtor/magazine/real-estate-news/law-and-ethics/the-truth-about-the-nar-settlement-agreement
Legal Fees for Attorney’s Class Action Suit
Based on the search results, there is no specific estimate provided for how much the lawyers will be awarded from the $418 million class action settlement between the National Association of Realtors (NAR) and the home sellers. However, some insights can be gathered:
1. While an exact figure is not provided, the search results strongly suggest that the plaintiffs' lawyers will likely be awarded between 25-35% of the $418 million NAR settlement, which could amount to around $104-146 million in attorneys' fees based on the typical contingency fee percentages in class action suits.
2. The people in the represented in the class action suit are likely to receive less than $20 dollars for their transaction.[1] They are already starting similar class actions in other parts of the United States.
Citations:
[1] https://www.bizjournals.com/bizjournals/news/2024/03/19/nar-lawsuit-settlement-payout-claim-remax-anywhere.html
[2] https://www.reuters.com/legal/litigation/brokerages-push-undo-18-bln-verdict-real-estate-commissions-case-2024-01-09/
[3] https://www.nar.realtor/competition-in-real-estate/burnett-trial-updates (Trial Updates)
Possible Solutions
• Include legislative or policy adjustments to ensure that VA loan benefits fully protect Veteran homebuyers in this new landscape.
• Real estate commissions become an allowable fee for VA buyers, which could give them the same flexibility as their civilian counterparts.
President Biden
President Biden’s remarked that this will lower housing costs for American families. POTUS repeated incorrect claims that the recently announced settlement agreement allows Americans to negotiate commissions for the first time. Commissions were already negotiable before this resolution was reached and will continue to be negotiable as they have been in the past. [1]
Citation:
1, https://www.nar.realtor/newsroom/nar-responds-to-president-joe-bidens-remarks-on-lowering-housing-costs-for-american-families.
Resource
VA Home Loan Guaranty Buyer’s Guide – Version: April 2022gf (PDF File)
https://tinyurl.com/mscjf9zm
COL Randall C. COL Jean (John) F. B. @Lt Col Charlie Lt Col Charlie Brown LTC Marc King LTC David Brown MAJ Dale E. Wilson, Ph.D. CSM Charles Hayden CSM Mike Maynard MSG Roy Cheever SFC John Davis Cpl Vic Burk SGT Michael Hamrac, MBA, MRP, GRI, REALTOR® SPC Douglas Bolton COL Mikel J. Burroughs
Posted in these groups: 
Veterans Affairs (VA)
Legal Services
Veterans Affairs (VA) Legal Services
Posted 7 mo ago
Responses: 2
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Class action suit 2/3 to the lawyers 1/3 to ??? The video is nothing short of confusing regarding the law suit, veteran home buyers and buyer/seller agents.
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SPC Jeff Daley, PhD
There is a lot of misinformation by news outlets and others on this topic. It's the main reason why I did this research. I also sent it to our Veteran organization, DAV, AL, and the VFW in hopes that they can help with the issue.
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SPC Jeff Daley, PhD
Just click on more - It's a bit of a read but I kept it concise and to the point. Citations are included.
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As usual with these lawsuits, the lawyers make out and the public and in this case, particularly the military, get screwed
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