HR 3694119th CongressIn Committee

VALID Act of 2025

Introduced: Jun 3, 2025

Financial ServicesHousing & Urban DevelopmentVeterans Affairs

Standard Summary

Comprehensive overview in 1-2 paragraphs

The VA Loan Informed Disclosure Act of 2025 (VALID Act of 2025) would make two main changes to federal housing programs. First, it requires that information about VA home loans be included in the Informed Consumer Choice Disclosure that lenders provide to prospective FHA borrowers. This means borrowers would see VA loan options and related terms (such as prevailing interest rates) when comparing loan choices alongside FHA options. Second, the bill would require a military service question to be added to the Uniform Residential Loan Application (URLA) used by Fannie Mae and Freddie Mac, with the question placed above the signature line. The Federal Housing Finance Agency (FHFA) would be directed to issue rules to implement these changes. The bill also clarifies that the disclosure requirement does not obligate lenders to determine a borrower’s VA loan eligibility. In short, the bill aims to improve consumer information for VA loan options and collect veteran status data on loan applications, with specific implementation timelines for federal housing agencies and the government-sponsored enterprises (GSEs).

Key Points

1Adds VA loan information to the FHA Informed Consumer Choice Disclosure, including reference to VA loans and prevailing interest rates for loans guaranteed or insured under the VA program (chapter 37, title 38, U.S.C.).
2Includes a rule of construction clarifying that the disclosure obligation does not require original lenders to determine a borrower’s VA loan eligibility.
3Requires the Uniform Residential Loan Application (URLA) to include a military service question, and to position that question above the signature line.
4Directs FHFA to issue rules within six months after enactment to implement the URLA change and the military service disclosure.
5The bill is titled the VA Loan Informed Disclosure Act of 2025 (VALID Act of 2025) and was introduced in the House in 2025.

Impact Areas

Primary group/area affected- Prospective homebuyers, particularly veterans and active-duty service members, who are considering FHA- or VA-backed loan options and rely on the Informed Consumer Choice Disclosure.Secondary group/area affected- Fannie Mae and Freddie Mac (the GSEs) and the Federal Housing Finance Agency, which would implement the URLA changes through required rulemaking.- Lenders participating in FHA loan programs and those processing URLAs, who would need to incorporate VA information into disclosures and collect military service data.Additional impacts- Data collection: The added military service question on the URLA would capture veteran status, potentially informing VA loan usage, program outreach, and consumer research.- Privacy and consumer information: Collecting military service data may raise questions about how the data is stored and used, though the bill focuses on disclosure and form changes rather than new data-sharing requirements.- Implementation timeline: With rules due within six months of enactment and the URLA change within six months after enactment, the changes could begin to appear in disclosures and forms within roughly a year, subject to final rulemakings.

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