VAREP Walks Point on H.R.2777: Give Veterans Home Loan Choice Act 2017
By guest blogger George “G-II” Varrato, CRMS, USAF Retired
The Veterans Association of Real Estate Professionals (VAREP) is leading the charge to get H.R.2777: Give Veterans Home Loan Choice Act 2017 passed into law. This bill finally closes a gap in the disclosure process of loan options that are available to veterans.
Currently, if an applicant identifies as a veteran, lenders are only required to compare FHA with Conventional loans. H.R.2777 adds language to also compare VA Loans, if offered by the loan company. By adopting this simple disclosure protocol, mortgage companies have the potential to increase their bottom-line revenue by one-third or more.
In 2016, a VAREP survey of veterans showed that 65 percent said they did not think they could ever own a home and 95 percent said they did not receive adequate housing counseling and VA Home Loan education while serving and during the post-separation process. These are just some of the reasons why veteran homeowners have not been using this VA benefit.
VAREP truly believes that passing this bill into law is a major step in the right direction.
During the month of August, the VAREP National Legislative Committee promoted H.R.2777 to many interested groups, including the National Association of REALTORS® (NAR). This effort resulted in a written endorsement by NAR and we believe another will be coming soon from the Mortgage Bankers Association.
Over the next four months, VAREP will be leaning on the U.S. House of Representatives to usher this legislation through the House Financial Services Committee and then onto the floor for a vote.
Related story: New Veteran-Friendly Mortgage Loan Application (eff. January 2018)