Bill Overview
Title: VALID Act of 2022
Description: The bill requires a Federal Housing Administration mortgage notice to a veteran to contain comparative rate and fee information about loans available under the Veterans Affairs home loan program.
Sponsors: Rep. Kilmer, Derek [D-WA-6]
Target Audience
Population: Veterans eligible for VA home loans
Estimated Size: 18000000
- The bill affects veterans who are potential home buyers.
- It specifically targets veterans who are eligible for VA home loans.
- The Federal Housing Administration (FHA) mortgage notice is relevant to veterans who might be comparing FHA loans with VA loans.
Reasoning
- Veterans looking to buy homes are the primary beneficiaries of this policy as it provides them with clearer information, potentially saving them money.
- The population is quite large but only a fraction will be home buyers in any given year, thus the policy impacts mostly newer or first-time veteran home buyers.
- The budget is adequate given that the primary cost is producing and distributing the informed disclosures.
- Most veterans might not see direct financial changes immediately but will have better decision-making tools.
Simulated Interviews
Software Engineer (Texas)
Age: 32 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I think more information on loan options can help me make the right decision about buying a house.
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 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Nurse (California)
Age: 45 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- This sounds useful. When I refinance, knowing my options can only help.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 9 |
Helper at a Vet Clinic (Virginia)
Age: 28 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 12/20
Statement of Opinion:
- Honestly, I’m not sure it'll help me right now as I'm not buying soon, but it's good to know about.
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 | 8 | 7 |
| Year 20 | 8 | 7 |
Retired (Florida)
Age: 52 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- I don't see this having a major impact on me directly, but it's nice to get full information in case I help my kids.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Mechanic (Ohio)
Age: 39 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 15/20
Statement of Opinion:
- I think as a homeowner, having comparisons will make financial decisions easier.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Freelancer (New York)
Age: 30 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 6/20
Statement of Opinion:
- Having clear info when I'm ready to buy is crucial. Right now, I'm settling into civilian life.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Retired (North Carolina)
Age: 60 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- It doesn't impact me directly anymore, but I support anything that helps veterans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Teacher (Illinois)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I think it's beneficial to see what options I might have when I decide to move.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 8 |
Student (Colorado)
Age: 25 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- I'm hopeful about getting more details, as finding the best deal is important to me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Construction Management (Washington)
Age: 47 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- This would provide so much clarity in an otherwise confusing process.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Cost Estimates
Year 1: $3000000 (Low: $2000000, High: $4000000)
Year 2: $2500000 (Low: $1500000, High: $3500000)
Year 3: $2000000 (Low: $1500000, High: $2500000)
Year 5: $2000000 (Low: $1500000, High: $2500000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The main cost driver is the need for IT system updates and staff training to provide relevant information in FHA notices.
- While the bill does not generate immediate savings for the government, better-informed veterans might choose loans that reduce default rates, indirectly benefiting the government.
- The reach is primarily to veterans considering VA loans, a subset of the overall veteran population.