ICBA, groups urge VA to streamline home loan program

ICBA and other groups called on the Department of Veterans Affairs to align the minimum property requirements under its Home Loan Guaranty Program with the standards established by Fannie Mae and Freddie Mac.

Details: In a joint letter responding to a request for information as part of an advance notice of proposed rulemaking, the groups urged the VA to:

  • Improve the VA home loan benefit and its utilization by modernizing the collateral valuation process and aligning it with the conventional market.

  • Address the program’s unnecessary requirements, which often result in closing delays and failed deals without remedying lenders' collateral risk or the soundness of properties.

  • Require appraisers and property data collectors to holistically determine the condition in accordance with a standardized condition rating, which would reduce impediments to using the VA program.