ACU, Other Trades, Warn VALID Act Rollout Could Create Confusion For Veteran Homebuyers
By CU Today Staff —
WASHINGTON--Enacted as part of the 21st Century ROAD to Housing Act, the Veterans Affairs Loan Information Disclosure (VALID) Act adds requirements for lenders to ensure eligible veterans learn about Department of Veterans Affairs (VA) home loans when applying for a mortgage.
The Federal Housing Administration (FHA) is implementing the measure, and a joint letter to the FHA from America’s Credit Unions and other associations sent Friday outlines potential concerns that could lead to consumer confusion and operational challenges for lenders.
The organizations support the intent of the law to inform servicemembers and veterans about VA home loan benefits, but note it is not possible to determine VA eligibility without additional information from the prospective borrower.
Originally reported by CU Today.