Long Island, NY - Sept. 27, 2018 - Congressman Lee Zeldin (R, NY-1) was joined by Representatives Claudia Tenney (R, NY-22), David Scott (D, GA-13) and Kyrsten Sinema (D, AZ-9) in securing unanimous bipartisan House passage of the Protecting Affordable Mortgages for Veterans Act (H.R. 6737).
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 this year, 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. 6737) 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.
“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,” said Rep. Zeldin.
“The VA home loan program allows veterans and service members the opportunity to become homeowners, and it has proven to be a great success. The Protect Affordable Mortgages for Veterans Act of 2018 will protect our veterans, ensuring they receive certainty in the marketplace. This bill is a simple fix, and I look forward to continuing to work in a bipartisan manner with my colleagues to ensure our veterans get the help they deserve,” said Rep. Claudia Tenney.
“2,500 veterans had their VA home loans placed in limbo because of a simple drafting error. I’m proud to join Mr. Zeldin in his hard work to spotlight this issue, and come up with a simple fix so that Ginnie Mae can securitize these loans. Veterans always need to be put first— and this bill is a small but important effort to show that Congress is keeping faith with our commitment to them,” said Rep. David Scott.