Hartzler Supports Bipartisan Effort to Protect Veteran Homeowners
WASHINGTON, D.C. – Congresswoman Vicky Hartzler (MO-04) supported H.R. 1988, the Protect Affordable Mortgages for Veterans Act of 2019, which corrects a technical error that was triggered by a banking regulatory overhaul passed into law last year. The bill fixes flaws in the Economic Growth, Regulatory Relief, and Consumer Protection Act which inadvertently prevented Ginnie Mae from guaranteeing securities backed by approximately 2,500 veterans’ mortgages.
“American service members, veterans, and their families have sacrificed so much in defense of our great nation,” said Congresswoman Hartzler, a senior member of the House Armed Services Committee. “In return, we have the responsibility to ensure that each and every veteran has the support they need to obtain affordable housing, and this measure is a necessary step to ensure that. I applaud this bipartisan effort and the actions of my colleagues in expanding housing options for our nation’s heroes.”
This measure would make two essential changes to the current law. First, it would allow for the “orphaned loans” that had been refinanced and guaranteed by the Veterans Affairs Department to be pooled in the secondary market. Additionally, the bill would make it easier for banks to follow a rule in the banking law for refinancing veterans’ home loans so that they qualify for VA guarantees. These small but significant changes will increase overall liquidity and free up capital for the institutions making VA home loans. In turn, these reforms will ultimately preserve lower rates and more affordable borrowing costs for our nation’s veterans.
The bill passed the House last night and now goes to the Senate for consideration.
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