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FNMA Selling Policy Updates 2024: IPC

Posted on May 13, 2024 by Damon Germanides

FNMA has issued 5 Selling Policy updates, signifying a pivotal moment in mortgage lending. Included in these updates, FNMA has clarified the impact of their NAR settlement on IPC caps. If a buyer’s agent commission continues to be a “common and customary” seller cost, it is not counted toward the Interested Party Contribution maximum (between 2% – 9% of the property value). The standard of “common and customary” has not been formalized and is measured by regional practice. As a recap, under the new system that NAR agreed to in settling the suit, when a home hits the market, listing agents will no longer specify how much the buyer’s agent will be paid. Instead, that fee will be negotiated separately between the buyer and the buyer’s agent. We have included a matrix of the current FNMA IPC maximums below, as well as FHLMC’s matrix for reference. Currently, there is no determination in how the Department of Veterans Affairs will handle potential changes to buyer real estate commissions. Moreover, there is still potential for changes to the FHFA rule that prevents buyers from rolling the listing commission into mortgages. Stay tuned for more updates. Subscribe to our Weekly Market Commentary for more.

Updated IPC Maximums

Maximum Interested Party Contributions for FNMA loans:

FNMA Selling Policy Updates 2024, FNMA Selling Policy Updates 2024: IPC

Maximum Interested Party Contributions for FHLMC Loans:

FNMA Selling Policy Updates 2024, FNMA Selling Policy Updates 2024: IPC

Link to full Selling Policy Updates here.

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These are the opinions of the author. For financial advice, please talk to your CPA or financial professional.

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(2) Disclosures

(1) Minimum FICO, reserve, and other requirements apply. Contact your loan officer for additional program guidelines, restrictions, and eligibility requirements. Rates, points, APRs and programs are subject to change without notice. Actual closing times will vary based on borrower qualiﬁcations and loan terms. All loans are subject to credit approval. (2) “Loan to Cost” (LTC) is defined as the acquisition price of the property plus the cost to build as determined by a bank appraisal. Contact your loan officer for additional program guidelines, restrictions, and eligibility requirements. (3) With an interest-only mortgage payment, you will not pay down the loan's principal balance during the interest-only period. Once the interest-only period ends, your payments will increase to pay back the principal and interest. Rates are subject to increase over the life of the loan. Contact your Insignia Mortgage, Inc. loan officer to determine what your payments might be once the interest-only period ends. (4) With an adjustable rate mortgage (ARM), the loan payment will adjust after an initial period and then adjust on a regular basis as set forth in the loan documents. For example, a “3/1” loan will have an interest adjustment 3 years after the loan closes and every 12 months thereafter. Also, the loan will be subject to annual and lifetime adjustment caps. Contact your Insignia Mortgage loan officer to determine what your payments might be once the fixed rate period of the loan ends. (5) Insignia Mortgage, Inc., is a real estate broker licensed by the CA Bureau of Real Estate, DRE #01969620, NMLS #1277691.