VALOR Act

Summary#

The VALOR Act would change a part of title 38 of the U.S. Code about VA housing loan fees. It says fees that were collected in violation of existing rules must be treated as overpayments and either refunded to the person or credited to the loan. It also says that if a veteran applied for a VA-guaranteed, insured, or made housing loan while they had a pending disability claim or a notice of intent to file, the VA can collect the fee at loan time. If that veteran later gets that disability claim approved and receives disability compensation, the Secretary must reimburse the veteran the amount of the fee.

What it means for you#

• If you are a veteran applying for a VA housing loan and you have a pending disability claim or have filed a notice of intent, you may pay the required loan fee when you apply.
• If your disability claim is later approved and you begin receiving disability compensation tied to that claim, the VA must reimburse you the fee you paid.
• If a fee was collected in violation of the law, it must be treated as an overpayment and the VA must refund it or apply it as a credit toward the loan.

Expenses#

No publicly available information.

Proponents' View#

The bill's stated purpose is to refund or credit housing loan fees collected from certain veterans who had pending disability claims and later receive disability compensation. Sponsors introduced it to provide relief to those veterans by ensuring they are reimbursed after their claims are approved.

Opponents' View#

No publicly available information.