Reps. Zeldin, Scott, Barr & Levin's Bipartisan Bill to Protect Affordable Mortgages for Veteran Homeowners Passes House Unanimously, Heads to President's Desk to Become Law
Press Release
Congressman Lee Zeldin (R, NY-1) was joined by Representatives David Scott (D, GA-13), Andy Barr (R, KY-6), and Mike Levin (D, CA-49) in securing unanimous House passage of their bipartisan Protecting Affordable Mortgages for Veterans Act (H.R. 1988). This legislation now heads to the President's desk to become law.
Due to ambiguous language previously enacted into law, roughly 2,500 Veterans Affairs (VA) loans, worth $500 million, taken out in May and June of 2018, are not eligible to be pooled through the Government National Mortgage Association (Ginnie Mae), which could significantly raise closing costs and rates for qualified veteran borrowers. The ability to pool these mortgages, which are comparatively low risk and boast a very low default or delinquency rate, maintains important liquidity in the VA home loan market while helping to lower rates and increase cost savings for veteran borrowers. Furthermore, the inability to pool VA loans could cut off liquidity to the VA home loan market and stifle future refinancing opportunities.
The Protecting Affordable Mortgages for Veterans Act (H.R. 1988) clarifies this ambiguous language and restores lenders' ability to pool VA home loans, increases market liquidity, preserves future refinancing opportunities, provides lower rates and most importantly passes along cost savings to our nation's veterans and their families.
Congressman Zeldin said, "Our nation's service members, veterans and their families have made a tremendous sacrifice in service to our great nation and the freedoms and liberties that make this country the greatest in the world. They have earned nothing less than our unwavering support when transitioning back into civilian life, and such a critical part of living out the American dream they fought so hard to protect is the dream of homeownership. Ensuring certainty in the market and access to affordable mortgages for our nation's veterans is the least we can do as they transition into civilian life, which is why I look forward to the President signing this important bipartisan legislation into law. I thank my colleagues, Congressmen David Scott, Andy Barr, and Mike Levin, for working across the aisle to fight for our nation's brave service men and women."
Congressman Scott said, "I am so pleased that the House moved swiftly to pass my bill, H.R. 1988. It is absolutely essential that we strengthen the veteran home loan market and preserve safe, affordable, and accessible borrowing opportunities for our military personnel and veterans. This bipartisan legislation will preserve critical VA refinancing protections for our veterans while at the same time allowing for these orphaned veteran loans to be securitized. Making this change will free up liquidity, enabling lenders to make new loans and ensuring that veteran borrowers have access to the VA home loan benefits they have earned. I want to thank my bipartisan cosponsors, Representatives Lee Zeldin, Mike Levin and Andy Barr for their leadership on behalf of our servicemembers in moving this bill forward."
Congressman Barr said, "As a member of the House Committee on Veterans' Affairs, I was proud to support this bipartisan bill to help ensure our veteran homeowners have access to affordable home loans. This legislation maintains the protections intended for our service members and their families while strengthening the veteran home loan market to ensure that veteran homeowners do not face uncertainty and unaffordable home loans. I'm grateful to my colleagues, Reps. Scott, Zeldin, and Levin for their support. But most importantly, I am grateful to the sacrifice our veterans have made to this country and will continue to fight for the benefits they deserve."
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