In June 2019, Congress passed, and the President signed, a bill eliminating the VA loan cap. The elimination of the cap was part of the Blue Water Navy Vietnam Veterans Act (HR 299).
At one point last summer, it was proposed to raise the VA loan fees to 0.5% for non-disabled vets in order to pay for some the provisions in the bill. NAR sent a letter to the Senate Veterans Affairs Committee basically stating the value of the program to veteran homeownership and the need for VA loan fees to be based on the specific loan risk, not increased to pay for other programs. You may read NAR’s letter at www.weservgad.org.
Recently, we have had questions regarding VA loan denials in some areas, specifically Sun City. It turns out that under VA underwriting guidelines, association rent restrictions must not limit rentals to less than a year. You can read more at www.weservgad.org.
On April 18th 2019 HUD released Mortgagee Letter 19-06 detailing changes in down payment assistance from government entities for FHA borrowers.
Here are some of the core issue for HUD: They are losing money according to HUD’s 2018 annual report to Congress.
In response to the lawsuit filed by the Cedar Band of Paiutes, HUD extended the effective time for its new rules from April 18, 2019 to July 23, 2019 in Mortgagee Letter 2019-07. Shortly after the recording of this podcast, HUD announced it would be suspending the changes contained in Mortgagee Letter 19-06 “until further notice”.
Don’t forget, we have a Visit with Legislators scheduled in September. One in Pinal and one in Peoria. Check the GAD events calendar at www.weservgad.org for the legislators we will have as our guests.
WeMAR GAD: Advocating for private property rights, the right to private contract and YOUR business.