Housing Disclosure Adds VA Info and Service Question

Summary#

S.1932, the VALID Act of 2025, would amend the National Housing Act and the Federal Housing Enterprises Financial Safety and Soundness Act of 1992. Its stated goal is to add information about VA home loans to a disclosure for prospective FHA borrowers and to add a military-service question to the Uniform Residential Loan Application. The bill was introduced and is not law; the parent Acts were not supplied, so I could not verify the full current requirements.

  • The existing disclosure for prospective FHA borrowers would include information about a loan guaranteed or insured under the VA home-loan program, using prevailing interest rates.
  • An original lender would not have to determine whether a prospective borrower qualifies for a loan mentioned in that disclosure.
  • The Federal Housing Finance Agency Director would have to require each “enterprise” to add a military-service question to the Uniform Residential Loan Application and place it above the signature line.
  • The Director would have to issue a rule to carry out that requirement within six months after enactment. The enterprises would have up to six months after enactment to include the question.

What it means for you#

  • Prospective FHA borrowers: The disclosure they receive would include information about a VA loan based on prevailing interest rates. The lender would not have to check whether you qualify for that loan.
  • People using an enterprise’s Uniform Residential Loan Application: The form would include a military-service question above the signature line. The bill does not say that you must answer it.
  • Lenders and enterprises: The bill does not create a process for checking VA eligibility. It does require the enterprises to change the form, once directed by the FHFA Director.
  • Other borrowers: The bill does not directly change FHA or VA loan eligibility, loan terms, or who may receive either type of loan.

Money#

No publicly available information.

  • The bill gives no estimate of public costs, staffing costs, or costs to change the disclosure and application forms.
  • It does not set a fee, tax, fine, or loan benefit.

What is unclear#

  • The bill does not specify exactly what VA loan information the FHA disclosure must show beyond tying it to prevailing interest rates.
  • It does not define the wording of the military-service question or say how answers may be used, stored, or protected.
  • It does not identify which entities count as “enterprises”; the parent Act was not supplied to check that definition.
  • The bill sets deadlines after enactment but does not say when enactment would occur. Its passage is uncertain.
  • The bill does not explain how the new disclosure would interact with any other loan-comparison information already provided.

Case for#

  • A possible argument for the bill is that prospective FHA borrowers would receive information about a VA loan option when comparing mortgage choices.
  • A lender would not have to decide whether the borrower qualifies for the VA loan, which keeps that eligibility determination outside this disclosure requirement.
  • Asking about military service on the loan application could make that information visible in the application process, though the bill does not specify what follows.

Case against#

  • The bill requires VA loan information in the disclosure but does not require the lender to check whether the borrower is eligible. The information may therefore describe an option that does not apply to a particular borrower.
  • The bill does not set out the exact comparison or calculation to be shown, beyond assuming prevailing interest rates.
  • It requires a military-service question but does not explain why the information is collected or how it may be used or protected.
  • Form changes and FHFA rulemaking may have costs, but the bill provides no estimate.