This part adds veterans loans to a notice lenders already give. The notice shows what different loans cost. It also puts a question about military service on the home loan form. That question has three answers.
The document says “is amended”Who acts: CongressHow: statuteSec. 603 in the PDF
What the document says
“``(ii) in connection with a loan guaranteed or insured under chapter 37 of title 38, United States Code, assuming prevailing interest rates; and''.”
The section amends section 203(f)(2)(A) of the National Housing Act so that the disclosure comparing loan costs also covers a loan guaranteed or insured under chapter 37 of title 38 of the United States Code, assuming prevailing interest rates.
What the document actually says
“``(ii) in connection with a loan guaranteed or insured under chapter 37 of title 38, United States Code, assuming prevailing interest rates; and''.”
That sentence, in plain words
The notice must also cover a loan backed by the veterans agency. It uses the rates of the day.
What this is about
The notice shows a borrower what different loans would cost. Before this it left out veterans loans. Now it must include them.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “may not be construed”Who acts: original lendersHow: statuteSec. 603 in the PDF
What the document says
“Nothing in the amendments made by paragraph (1) shall be construed to require an original lender to determine whether a prospective borrower is eligible for any loan included in the notice required under section 203(f) of the National Housing Act (12 U.S.C. 1709(f)).”
The section states that nothing in the amendment may be read as requiring an original lender to work out whether a prospective borrower is eligible for any loan listed in the notice required by section 203(f) of the National Housing Act.
What the document actually says
“Nothing in the amendments made by paragraph (1) shall be construed to require an original lender to determine whether a prospective borrower is eligible for any loan included in the notice required under section 203(f) of the National Housing Act (12 U.S.C. 1709(f)).”
That sentence, in plain words
A lender does not have to work out what a borrower qualifies for. The notice lists loans, but the lender need not check each one.
What this is about
The notice is meant to inform, not to promise. A borrower still has to apply. This makes clear the lender takes on no new duty.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Director of the Federal Housing Finance AgencyHow: statuteSec. 603 in the PDF
What the document says
“``(1) include a military service question on the form known as the Uniform Residential Loan Application to include selection options of `Yes', `No', and ``Prefer Not To Answer''; and ``(2) position the question described in paragraph (1) above the signature line of the Uniform Residential Loan Application.''.”
The section adds a new section 1330 to the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 requiring the Director, within six months of enactment, to make each enterprise put a military service question on the Uniform Residential Loan Application with the options Yes, No, and Prefer Not To Answer, positioned above the signature line. The Director of the Federal Housing Finance Agency must issue a rule carrying out the amendment within six months of enactment.
What the document actually says
“``(1) include a military service question on the form known as the Uniform Residential Loan Application to include selection options of `Yes', `No', and ``Prefer Not To Answer''; and ``(2) position the question described in paragraph (1) above the signature line of the Uniform Residential Loan Application.''.”
That sentence, in plain words
The home loan form must ask about military service. It must offer three answers. A person may say yes, no, or that they would rather not say. The question sits above where the person signs.
What this is about
A person who served may qualify for a cheaper loan. The question is how a lender finds out. The third option lets a person keep it private.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The three things the section does: adding a veterans loan comparison to the Federal Housing Administration disclosure, the rule of construction on lender duties, and the new section 1330 requiring a military service question with three options above the signature line.
Nothing the section does is left out.
The section works by amending the National Housing Act and the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, neither of which is indexed here, so nothing is recorded about the rest of the informed consumer choice disclosure.
