Bill Overview
Title: Improving Access to the VA Home Loan Act of 2022
Description: This bill 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 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: Sen. Sullivan, Dan [R-AK]
Target Audience
Population: veterans eligible for VA home loans seeking to purchase property
Estimated Size: 19500000
- The bill impacts veterans who are eligible for VA home loans, as it streamlines the appraisal process for these loans.
- By requiring the VA to update regulations and guidance on appraisals, the bill aims to make it easier for veterans to obtain home loans, potentially affecting all veterans seeking these loans.
- The bill mentions desktop appraisals, which could reduce costs and time delays, directly benefiting veterans looking to buy homes with VA loans.
Reasoning
- We have a large population of 19.5 million veterans potentially impacted by this policy.
- Not all veterans will be seeking a VA home loan immediately. It is estimated that a smaller fraction will engage with the policy each year.
- Given the budget constraints, it is likely that the policy will initially impact a smaller group of veterans, especially those currently looking for homes.
- The policy aims to streamline and make the appraisal process cheaper and faster, potentially aligning with the greater goal of improving self-reported wellbeing scores among veterans.
- We expect variance in impact; some veterans may not perceive change or benefit immediately, while others could experience significant improvements due to cost savings or less procedural friction.
- The long-term effects are more pronounced as the process becomes more efficient and veteran satisfaction potentially increases over time.
Simulated Interviews
Veteran and IT Specialist (San Diego, CA)
Age: 30 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I think updating the appraisal process could help people like me get into homes sooner and save money.
- Desktop appraisals seem like a modern solution that could help reduce the hassle.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Veteran and Nurse (Austin, TX)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- Any cost savings could be reinvested in maintaining my home better.
- I am currently paying off my mortgage, so direct impact is less, but future refinancing could benefit.
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 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Veteran and Real Estate Agent (Fairfax, VA)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- As an agent, this policy will likely make VA home buying-scenarios smoother for clients.
- There might be fewer bottlenecks with quicker appraisals.
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 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 7 |
Retired Veteran (Miami, FL)
Age: 65 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 6/20
Statement of Opinion:
- The policy doesn't directly influence me now but would benefit veterans looking to invest or buy their primary residences.
- Encouraging efficiency in asset management is always a positive.
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 | 8 | 8 |
| Year 20 | 8 | 8 |
Veteran and Software Developer (Chicago, IL)
Age: 39 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- Could really benefit from cost savings and less time involved in appraisals.
- It's intimidating to start the home-buying process, streamlining it is appreciated.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 7 |
Active Duty Military (Seattle, WA)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- If buying a home becomes faster and cheaper with a VA loan, it could be quite beneficial, especially for service members on tight schedules.
- Appraisals often seem tedious; streamlining is essential.
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 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 8 |
Veteran and Small Business Owner (Denver, CO)
Age: 56 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Updating the appraisal system might make me reconsider using VA loans for business property in the future.
- It's always great to see improvements for veterans post-service.
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 | 8 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Retired Veteran (New York, NY)
Age: 60 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- A quicker appraisal could affect resale positively.
- Interest in seeing how it impacts fellow retired veterans pursuing similar financial adjustments.
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 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Veteran and University Student (Atlanta, GA)
Age: 34 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Potentially beneficial when I look to buy, particularly in reducing initial costs.
- Streamlined processes always help with financial planning.
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 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 8 |
Veteran and Civil Engineer (Los Angeles, CA)
Age: 42 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- This policy is directed more at those just starting; my own experience suggests it would have been a massive help earlier.
- For urban veterans, desktop appraisals could cut through red tape significantly.
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 |
Cost Estimates
Year 1: $5000000 (Low: $4000000, High: $6000000)
Year 2: $4000000 (Low: $3000000, High: $5000000)
Year 3: $4000000 (Low: $3000000, High: $5000000)
Year 5: $3000000 (Low: $2000000, High: $4000000)
Year 10: $2000000 (Low: $1000000, High: $3000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The policy is fairly targeted, impacting a particular demographic within the housing market—veterans seeking VA home loans.
- Streamlining the VA appraisal process could increase home ownership opportunities for veterans, subsequently benefitting the wider economy.
- Potential cost savings for veterans might be significant on a case-by-case basis, despite the relatively low aggregate savings.