WASHINGTON, DC – Congressman Raúl M. Grijalva (D-AZ) today led 45 of his Congressional colleagues in sending a pair of bipartisan letters to the Consumer Financial Protection Bureau (CFPB) and the Federal Housing Finance Agency (FHFA), urging them to add a veteran status identifier on the uniform residential loan application to ensure more veterans are aware of VA home loan options.
“The men and women in our armed services earn benefits like the VA home loan option through their service to our nation,” Rep. Grijalva said. “But far too often, we fall short of delivering those benefits simply by failing to inform veterans about the opportunities available to them. Adding a veteran status identifier on the uniform residential loan application is a small step that we should take, as it will spur the conversations that will help ensure veterans get every benefit they’ve earned. It will also provide much-needed data on how many veterans obtain VA home loans, allowing us to analyze the program and make our veteran outreach more effective.”
Grijalva’s letter comes after a Veterans Administration (VA) survey found that 62 percent of older veterans and 25 percent of younger veterans said their lender never discussed the VA loan option with them.
“It is the lender’s responsibility to provide their clients with the full scope of their options,” Grijalva continued. “Benefits like zero down payments can have a tremendous impact on someone looking to buy their first house, and our veterans deserve to know if they’re eligible.
The full text of Rep. Grijalva’s letter is available here and below.
September 22, 2015
The Honorable Richard Cordray
Director
Consumer Financial Protection Bureau
1700 G Street, NW
Washington, D.C. 20552
Dear Director Cordray:
We are writing to urge the Consumer Financial Protection Bureau (CFPB) to add military veteran identification as a data-collection point on the Home Mortgage Disclosure Act (HMDA). This would provide a better snapshot of the veteran lending experience and could encourage adoption of a veteran’s status question on uniform lending forms. Veteran consumers deserve an accurate and thorough comparison of the loans they are eligible for including VA loans.
Collecting this data will help military and veteran consumers make informed decisions based on all of their mortgage loan options.
The VA home loan has several advantages, including the potential for no down payment as long as the sales price doesn’t exceed the appraised value, no private mortgage insurance premium requirement, limits on closing cost charges, as well as protection from lenders penalty fees for paying a loan off early. Further, a veteran does not have to be a first-time homebuyer to get a VA loan and they are able to reuse the benefit. These VA home loan guarantees are all earned benefits that each veteran has earned through their service to our country.
The limited available data demonstrates that we must do more to disclose the availability of this benefit to our servicemen and women. In 2014 a Veterans Association of Real Estate Professionals housing survey found that 85 percent of veterans said that they did not receive VA Loan training during service, transitioning out, or post service separation. In a 2010 VA survey, 62 percent of older veterans and 25 percent of younger veterans said their lender never discussed the VA loan option with them. According to National Mortgage News in 2014, less than 12 percent of active-duty service members and military veterans with mortgages have a loan guaranteed by the Department of Veterans Affairs.
With veteran homelessness, unemployment and persistent wage stagnation across our country, the federal government must work to ensure that all veterans are educated on their benefits. Adding veteran status to the HMDA will provide the information necessary to engage with veterans regarding the VA home loan process, creating knowledgeable consumers, and responsible homeowners. We respectfully urge the Consumer Financial Protection Bureau to act swiftly to address this pressing issue.
Sincerely,
Raúl M. Grijalva
Member of Congress
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September 22, 2015
Federal Housing Finance Agency
Office of the Director
1700 G Street NW
Washington, D.C. 20552-0003
Dear Director Mel Watt:
We are writing to urge the Federal Housing Finance Agency to add military veteran identification as an option on the uniform residential loan application. Veteran consumers deserve an accurate and thorough comparison of the loans they are eligible for including VA loans. Collecting this data will help military and veteran consumers make informed decisions based on all of their mortgage loan options.
The VA home loan has several advantages, including the potential for no down payment as long as the sales price doesn’t exceed the appraised value, no private mortgage insurance premium requirement, limits on closing cost charges, as well as protection from lenders penalty fees for paying a loan off early. Further, a veteran does not have to be a first-time homebuyer to get a VA loan and they are able to reuse the benefit. These VA home loan guarantees are all earned benefits that each veteran has earned through their service to our country.
The limited available data demonstrates that we must do more to disclose the availability of this benefit to our servicemen and women. In 2014 a Veterans Association of Real Estate Professionals housing survey found that 85 percent of veterans said that they did not receive VA Loan training during service, transitioning out, or post service separation. In a 2010 VA survey, 62 percent of older veterans and 25 percent of younger veterans said their lender never discussed the VA loan option with them. According to National Mortgage News in 2014, less than 12 percent of active-duty service members and military veterans with mortgages have a loan guaranteed by the Department of Veterans Affairs.
With veteran homelessness, unemployment and persistent wage stagnation across our country, the federal government must work to ensure that all veterans are educated on their benefits. Adding veteran status to the uniform residential loan application form will provide the information necessary to engage with veterans regarding the VA home loan process, creating knowledgeable consumers, and responsible homeowners. We respectfully urge the Federal Housing Finance Agency to act swiftly to address this pressing issue.
Sincerely,
Raúl M. Grijalva
Member of Congress
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