VALID Act of 2025
Summary
What This Bill Does
The VALID Act changes mortgage disclosures so military service is less likely to be missed during home loan origination. FHA's informed consumer choice disclosure must include, alongside the existing FHA loan comparison, information about loans guaranteed or insured under title 38 chapter 37, assuming prevailing interest rates. The bill clarifies that lenders do not have to determine whether a borrower is actually eligible for every loan in the notice. Separately, FHFA must require Fannie Mae and Freddie Mac to include a military service question on the Uniform Residential Loan Application and place it above the signature line. FHFA must issue a rule within six months to carry this out.
Who Benefits and How
Veteran homebuyers benefit because FHA disclosures must show how a VA loan may compare at prevailing interest rates. Servicemember borrowers benefit because the mortgage application must ask about military service before signature. Mortgage counselors benefit from clearer cues to discuss VA loan options. VA loan program administrators benefit if eligible borrowers are identified earlier in the mortgage process.
Who Bears the Burden and How
FHA disclosure administrators must update the informed consumer choice notice. FHFA rulemaking staff must issue a rule within six months. Fannie Mae and Freddie Mac must change the Uniform Residential Loan Application. Mortgage lenders must use the revised disclosure and application, while not being required to determine VA eligibility.
Key Provisions
- Requires FHA disclosures to include a VA loan comparison using prevailing interest rates.
- Clarifies lenders need not determine borrower eligibility for every listed loan.
- Requires a military service question on the Uniform Residential Loan Application.
- Requires the military service question to appear above the signature line.
- Requires FHFA rulemaking within six months.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Requires FHA informed-consumer-choice disclosures to compare FHA loans with VA-guaranteed or insured loans using prevailing interest rates, and requires FHFA to add a military service question above the signature line on the Uniform Residential Loan Application within six months.
Key Policy Areas
Housing, Veterans, Mortgage Finance
Primary Purpose
Requires FHA informed-consumer-choice disclosures to compare FHA loans with VA-guaranteed or insured loans using prevailing interest rates, and requires FHFA to add a military service question above the signature line on the Uniform Residential Loan Application within six months.
Policy Domains
Resolution provisions
Identified Gains
- Veteran homebuyers
- Servicemember borrowers
- Mortgage counselors
- VA loan program administrators
Identified Costs
- FHA disclosure administrators
- FHFA rulemaking staff
- Fannie Mae
- Mortgage lenders
Sponsors
Legislative Progress
In CommitteeMs. Pettersen (for herself, Ms. Hageman, Ms. Williams of Georgia, …
Referred to the House Committee on Financial Services.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
FHA disclosure administrators, FHFA rulemaking staff
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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