Bill Overview
Title: Improving Access to the VA Home Loan Benefit Act of 2022
Description: This act requires the Department of Veterans Affairs (VA) to update regulations, requirements, and guidance related to appraisals for housing loans guaranteed by the VA. Specifically, such regulations or requirements must specify when an appraisal is required, how an appraisal is to be conducted, and who is eligible to conduct an appraisal for such loans. The act also requires the VA to submit to Congress recommendations for improving the delivery times for appraisals for VA loans and to take such recommendations into consideration in prescribing its updated regulations or requirements. The VA must also provide additional guidance for desktop appraisals, which are performed remotely using information gathered by third parties with whom a VA-approved appraiser has entered into an agreement for such appraisal. In updating such guidance, the VA must specifically take into account situations where (1) desktop appraisals provide cost savings for borrowers, and (2) a traditional appraisal requirement could cause time delays and jeopardize the completion of a transaction.
Sponsors: Rep. Bost, Mike [R-IL-12]
Target Audience
Population: People eligible for VA home loans
Estimated Size: 20000000
- The bill impacts veterans who are eligible for VA home loans, as it seeks to improve access to these loans.
- It could also impact the families of veterans who are seeking VA-guaranteed home loans as these families might be involved in the home buying process.
- Appraisers and those involved in the appraisal process will be impacted as it changes how appraisals are conducted and who can conduct them.
- Veterans Affairs staff and related personnel will be affected as they need to implement the new regulations and guidance.
Reasoning
- The Improving Access to the VA Home Loan Benefit Act of 2022 primarily affects veterans, appraisers, and families of veterans involved in the process of obtaining VA home loans. Veterans make up a significant portion of the target population, which means the policy needs to be assessed primarily based on its impact on them.
- Given the budget constraints, the policy needs to efficiently improve access to and the quality of appraisals while minimizing costs. The policy may also impact the speed at which veterans can complete the home-buying process.
- The diversity of veteran experiences, including those of different ages, life circumstances, and housing needs, must be captured to fully understand the policy's impact. It is crucial to consider that some veterans might be more reliant on such policies due to financial constraints or less opportunity in other home loan systems.
- With an estimated 20 million people as potential beneficiaries and considering the policy's budget, it may significantly impact a smaller, targeted segment of veterans who are currently facing challenges with home loan appraisals.
Simulated Interviews
Veteran, seeking home loan (Los Angeles, CA)
Age: 35 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- As a vet looking to buy my first home, faster appraisals could really help in competitive markets.
- Currently, delays can make offers fall through, so this policy might really help potential homeowners like me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
Military spouse, part-time teacher (Houston, TX)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- Processes can be tedious, and any improvement in the time and cost of appraisals would help us finalize our home plans.
- It's encouraging to see policies recognizing the difficulties vets and their families face. Could relieve financial stress too.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Retired Army, part-time appraiser (Rural Nebraska)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 2/20
Statement of Opinion:
- I'm transitioning into doing more desktop appraisals, so clearer guidelines are welcome.
- I hope these changes mean more work consistency for freelancers like me in rural areas.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Veteran, retired (Miami, FL)
Age: 65 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- Anything that cuts my costs when buying would be so helpful.
- I’m on a fixed income, so I’m hopeful about the potential savings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Appraiser (Denver, CO)
Age: 28 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- The demand for faster, more efficient appraisals is useful for my business model.
- It seems like the VA is trying to make the loan process more fluid, which is great for us.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
VA employee, loan specialist (Seattle, WA)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 4/20
Statement of Opinion:
- Changes can sometimes increase workload initially but end up streamlining processes.
- We’re always looking for ways to reduce frustration for veterans, so this seems promising.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Veteran, IT consultant (Atlanta, GA)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Flexibility in appraisals can help those of us who need to relocate quickly.
- It's not just about cost, it's about not losing out on potential homes due to appraisal delays.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Navy veteran, homemaker (New York, NY)
Age: 32 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 5/20
Statement of Opinion:
- With two kids, reducing any steps in the home-buying process can save a lot of stress.
- I'm excited about the potential time-saving aspect; every little bit helps when juggling family needs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Veteran, renter (Phoenix, AZ)
Age: 60 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- I never considered VA loans due to the hassles involved; if this makes it easier, I might finally go for it.
- Ownership would be a big step, and I'm cautious but hopeful.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Navy veteran, small business owner (Chicago, IL)
Age: 48 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 6.0 years
Commonness: 3/20
Statement of Opinion:
- Icing on the cake if the VA could make this process faster and cheaper.
- I’m always looking for stability in life, and this could provide it.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $7500000 (Low: $5000000, High: $10000000)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The primary cost driver is the administrative update in regulations and guidance by the VA, which involves personnel time, training, and communication expenses.
- Cost savings anticipated in the appraisal process can mitigate some initial implementation costs, particularly if desktop appraisals are effectively integrated.
- Low-to-neutral GDP and tax revenue impacts due to the small scale and administrative nature of the policy.