ICBA and other groups urged revisions to the Informed Consumer Choice Disclosure that explains Veterans Affairs loan eligibility to prospective borrowers.
Details: In a letter to the Federal Housing Administration, the groups offered recommendations regarding the FHA implementation of the Veterans Affairs Loan Information Disclosure (VALID) Act enacted as part of the 21st Century ROAD to Housing Act.
Input: The groups said:
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While they support the intent of the law to inform servicemembers and veterans of the VA home loan benefits, it is not possible to determine eligibility without additional information from prospective borrowers.
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Presenting VA loan terms to all prospective FHA borrowers without explaining the basic eligibility requirements could cause consumer confusion and operational challenges for lenders.
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To avoid these unintended consequences, the FHA should present the required VA comparative column with concise and prominent eligibility language.