VA Home Loan Awareness Act

Summary#

This bill requires the Federal Housing Enterprises director to make sure that each enterprise adds a short disclaimer below the military service question on the Uniform Residential Loan Application (the standard mortgage application form). The required wording is: "If yes, you may qualify for a VA Home Loan. Consult your lender regarding eligibility." The director must issue the rule or order within 6 months after the law is enacted. The bill also directs the Comptroller General (GAO) to study and report to Congress within 18 months on whether fewer than 80 percent of lenders using the form have included the required disclaimer.

What it means for you#

  • If you are filling out the Uniform Residential Loan Application and answer the military service question, you should see the short VA loan disclaimer if lenders follow the new rule.
  • If you are an enterprise or a lender using that form, you must include the specified disclaimer under the military service question within the 6-month implementation period.
  • The GAO will check and report to Congress about how many lenders added the disclaimer.

Expenses#

No publicly available information.

Proponents' View#

The bill text states its purpose is to increase awareness of the direct and guaranteed home loan programs of the Department of Veterans Affairs. Supporters would point to the added short message on the mortgage application and the GAO study as ways to make veterans and service members more aware that they may qualify for VA home loans and to track lender compliance.

Opponents' View#

No publicly available information.