MBA is insisting on conference action on VA hemes
On Wednesday, the House of Representatives Committee for Veteran Affairs Subcommissie for Economic Opportunities has planned a layout of different veteran-oriented documents of proposed legislation, including a bill called the “VA Home Loan Program Reform Act”. Sponsored by subcommittee chairman Rep. Derrick van Orden (R-Wis.).
“MBA remains a great concern that the VA plans to end the Vasp program without a viable replacement – a permanent partial claim – will lead to more veterans running the risk of losing their homes,” said MBA Housing. “We believe that the partial claim authority in the text of both the majority and minority versions of a change in the nature of a replacement (ANS) offers a practical and permanent solution that matches existing programs in other federal housing agencies.”
The MBA has submitted a letter to the chairs and members of the broader VA committee and the subcommittee and urged legislators to describe the need for a permanent partial claim option in the light of the end of the Veteran Affairs Service Purchase) program. VASP will stop accepting new applications at the beginning of May and the leadership of the committee has praised the development.
VA Committee Chairman Rep. Mike Bost (R-Oill.) And Van Orden said that Vasp “was established for political purposes by the Biden-Harris administration to make the undermining [Department of Veterans Affairs (VA)] Home Loan Program. “
But MBA came to defense when the end date of the application was announced and is now trying to inform legislators about the need for a replacement.
“We should not repeat the mistakes from the past when a viable loss restriction option was terminated without a replacement, unfair stranded veterans without the options available for all other government -supported borrowers,” said Bill Killmer, SVP of legislative and political affairs at MBA.
But partial claim authority included in the proposed majority and minority versions of new invoice text, in the form of the Ans for the subcommittee, “would not ensure that veterans are not left behind during moments of financial stress,” Killmer said.
The “Va Home Loan Program Reform Act”, also known as House Resolution (HR) 1815, would “authorize the secretary of Veterans Affairs to take certain actions in the event of an absence on a housing loan that is guaranteed by the secretary” text of the bill.
The most recent version of the bill, said Killmer, contains changes that MBA supports, including the elimination of interest on the partial claim balance, and replacing a fixed end date with a rolling period of three years.
However, MBA hopes that the version of the majority can make more changes, including clarification that “that the partial claim will not reduce the warranty on the existing VA loan;” Increasing the maximum claim amount from 20% to 30% of the unpaid main balance (UPB) to coordinate it to programs offered by the Federal Housing Administration (Fha); And to require implementation through the formal regulation process.
Similarly, MBA has expressed support for a democratic version of the bill with a partial establishment of the claim program and creating administrator participation and operating standards.
However, MBA does not support “granting new legal tolerance and shielding Moratorium Authority,” and urges the committee to remove or change the provision because of concerns about operational confusion, a need for “a consistent federal response” and a conviction that existing administrative authority is “sufficient”.
“MBA strongly supports the umbrella goal of HR 1815 to improve the VA’s loss restriction tool kit and urges members to vote ‘Aye’ to promote HR 1815 by considering the entire committee,” said Killmer. “The establishment of a permanently partial claim program is an important and arrears that will benefit both veterans and the wider mortgage market.”
