Hoeven: VA Implements Protections for Veteran Homeowners Seeking VA-Backed Refinancing Loans

Reforms Are Part of Consumer Protection, Regulatory Relief Bill Senator Helped Pass

WASHINGTON – Senator John Hoeven, a member of the Senate Appropriations Committee on Military Construction and Veterans Affairs (Milcon-VA), today issued the following statement after the U.S. Department of Veterans Affairs (VA) issued a new policy to protect veteran homeowners from predatory lending practices when seeking VA-guaranteed refinancing loans. Specifically, these protections address serial refinancing, helping to ensure that veterans receive lower interest rates on their refinanced loans and are able to recoup the cost of the refinancing within 36 months. More details on the policy can be found here.

“VA-backed loans are an important benefit for our servicemembers that help them achieve the dream of homeownership,” said Hoeven. “This policy change, which was included in legislation we passed last month, will help ensure that veterans receive a good value when using this refinancing program. They deserve nothing less.”

The reforms come as part of bipartisan legislation Hoeven helped pass to enhance consumer protections and provide regulatory relief for small community banks and credit unions. The bill included Hoeven-cosponsored provisions to prevent fraud and identity theft as well as provide flexibility for home appraisals in rural areas.