Sounds like before the NAR settlement, the mortgage team did not disclose the seller paid buyer's agent commission on the LE and/or CD, they only disclosed buyer paid (which used to basically never happen).

Since the NAR settlement, they are adding buyer and seller buyer’s agent commission. The team is telling me that when they add a “buyer’s agent commission” to the Loan Estimate that is seller paid, it triggers interested party contribution warnings on the automated underwriting reports and it confuses the borrowers.

I believe we must add the Buyer paid or Seller paid buyer's agent commission to the CD. But do we need it on the LE? And if so, how can we make it so the seller paid isn't triggering interested party contribution warnings?

Why would you be entering any seller paid fees for anything when you are preparing an LE? The LE has nothing to do with seller paid fees.

Plus, FNMA has already indicated the following. Has that changed?

If a seller or seller’s real estate agent continues to pay the buyer’s real estate agent commission in accordance with local common and customary practices, these amounts are not required to be counted towards the IPC limits for the transaction.

I don't believe the FNMA guidance has changed. I was just asking how people are adding the seller paid without triggering IPC warnings. But, I think my mortgage team just needs to add “buyer’s agent commission” to the Loan Estimate only when it is buyer paid. Then, I dont think it will trigger the IPC warning anymore. They were under the impression it had to be added on the LE no matter who was paying it. I still believe the CD needs to reflect “buyer’s agent commission” no matter if it is buyer or seller paid.

I was just asking how people are adding the seller paid

We only disclose items on the LE that the buyer is obligated to pay.

Thank you!