VALID Act of 2025
- Bill Number
- H.R. 3694
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2025-06-03: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-06-30T08:07:17Z
AI-Generated Summary
Purpose
The VA Loan Informed Disclosure Act of 2025 (H.R. 3694) aims to better inform prospective homebuyers, particularly those with military service, about alternative loan options. It requires including information on VA home loans in disclosures for FHA-insured loans and adds a question about military service to a standard loan application form. This promotes awareness of VA loan benefits, which are government-backed loans for veterans, active-duty service members, and eligible survivors, often with favorable terms like no down payment.
Key Provisions
- Short Title: The bill is titled the "VA Loan Informed Consumer Choice Disclosure Act of 2025" or the "VALID Act of 2025."
- FHA Informed Consumer Choice Disclosure (Section 2): Amends the National Housing Act to require that disclosures provided to prospective FHA (Federal Housing Administration) borrowers include comparisons of loan-to-value ratios (the ratio of the loan amount to the home's value) for VA loans, assuming current interest rates. A rule of construction clarifies that lenders do not need to assess a borrower's eligibility for VA loans.
- Military Service Question on Uniform Residential Loan Application (Section 3): Amends the Housing and Community Development Act of 1992 to mandate that Fannie Mae and Freddie Mac (government-sponsored enterprises that buy and securitize mortgages) add a question about military service to the Uniform Residential Loan Application (URLA), a standard form used nationwide for mortgage applications. The question must appear above the signature line. The Director of the Federal Housing Finance Agency (FHFA) must issue a rule to implement this within 6 months of enactment.
Significant Changes to Existing Law
- Expands the FHA's Informed Consumer Choice Disclosure, previously focused on general loan comparisons, to specifically include VA loan details, helping borrowers evaluate options beyond FHA loans.
- Introduces a new requirement for the URLA, which did not previously include a dedicated military service question, ensuring lenders collect this information consistently from applicants.
Potential Impacts
- On Citizens: Prospective homebuyers, especially veterans and military families, may gain better awareness of VA loan advantages, potentially leading to more favorable financing options and increased homeownership rates among this group.
- On Government Agencies: The FHA and FHFA will need to update forms, disclosures, and regulations, with implementation timelines of up to 6 months, possibly requiring minor administrative resources.
- On International Relations: No direct impacts, as the bill focuses on domestic housing policy.
Main Stakeholders Affected
- Prospective Borrowers: Especially those with military service, who will receive clearer information on loan choices.
- Lenders and Financial Institutions: FHA-approved lenders and mortgage originators must provide updated disclosures; Fannie Mae and Freddie Mac must revise the URLA.
- Government Agencies: FHA (under the Department of Housing and Urban Development) for disclosure updates; FHFA for rulemaking and oversight of enterprises.
- Veterans and Military Community: Indirectly benefits through promotion of VA loan programs administered by the Department of Veterans Affairs.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens consumer protection in housing finance by enhancing transparency without imposing eligibility determinations on lenders, avoiding potential liability issues. The 6-month rulemaking deadline ensures timely enforcement.
- Constitutional: No apparent conflicts; aligns with Congress's authority over interstate commerce and housing policy under the Commerce Clause.
- Political: Supports bipartisan efforts to aid military families, potentially influencing housing affordability debates, but introduces no major shifts in federal spending or oversight.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Pettersen, Brittany [D-CO-7]
Cosponsors (93)
Rep. Hageman, Harriet M. [R-WY-At Large], Rep. Williams, Nikema [D-GA-5], Rep. Kim, Young [R-CA-40], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Schneider, Bradley Scott [D-IL-10], Rep. Moolenaar, John R. [R-MI-2], Rep. Schakowsky, Janice D. [D-IL-9], Rep. Newhouse, Dan [R-WA-4], Rep. Strickland, Marilyn [D-WA-10], Rep. Thompson, Bennie G. [D-MS-2], Rep. Khanna, Ro [D-CA-17], Rep. Thanedar, Shri [D-MI-13], Rep. Titus, Dina [D-NV-1], Rep. Krishnamoorthi, Raja [D-IL-8], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Casten, Sean [D-IL-6], Rep. Cohen, Steve [D-TN-9], Rep. Costa, Jim [D-CA-21], Rep. Jackson, Jonathan L. [D-IL-1], Rep. Lieu, Ted [D-CA-36], Rep. Moulton, Seth [D-MA-6], Rep. Gosar, Paul A. [R-AZ-9], Rep. Garcia, Sylvia R. [D-TX-29], Rep. Davis, Danny K. [D-IL-7], Rep. Tonko, Paul [D-NY-20], Rep. Craig, Angie [D-MN-2], Rep. Timmons, William R. [R-SC-4], Rep. Salinas, Andrea [D-OR-6], Rep. Auchincloss, Jake [D-MA-4], Rep. Castro, Joaquin [D-TX-20], Rep. Kelly, Robin L. [D-IL-2], Rep. Neguse, Joe [D-CO-2], Rep. McBride, Sarah [D-DE-At Large], Rep. Smith, Adam [D-WA-9], Rep. Lawler, Michael [R-NY-17], Rep. Begich, Nicholas J. [R-AK-At Large], Rep. Finstad, Brad [R-MN-1], Rep. Bergman, Jack [R-MI-1], Rep. Tlaib, Rashida [D-MI-12], Rep. Schrier, Kim [D-WA-8], Rep. Davis, Donald G. [D-NC-1], Rep. Nehls, Troy E. [R-TX-22], Rep. Carson, André [D-IN-7], Rep. Ross, Deborah K. [D-NC-2], Rep. Wittman, Robert J. [R-VA-1], Rep. Rutherford, John H. [R-FL-5], Rep. Simon, Lateefah [D-CA-12], Rep. García, Jesús G. "Chuy" [D-IL-4], Rescom. Hernández, Pablo Jose [D-PR-At Large], Rep. Fleischmann, Charles J. "Chuck" [R-TN-3] and 43 more
Recent Actions
- 2025-06-03: Referred to the House Committee on Financial Services.
- 2025-06-03: Introduced in House
- 2025-06-03: Introduced in House
Bill Versions
- VA Loan Informed Disclosure Act of 2025 — issued 2025-06-03 — PDF (3 pages)