Congress is still enjoying its August recess, so there were no major votes on veterans legislation this week.

But something worth watching is beginning to take shape.

A bipartisan group of members of Congress has formed a Military & Veteran Housing Caucus specifically focused on housing stability, homeownership, financial readiness and the housing challenges faced by servicemembers, veterans and military families.

That may sound like just another congressional committee with a long name.

It is not a law, and it does not change anybody’s VA mortgage today.

But the fact that veteran housing is getting its own bipartisan congressional forum is worth paying attention to.

The caucus is being led by Republican Rep. Pete Sessions of Texas and Democratic Rep. Susie Lee of Nevada, with members from both parties serving as vice chairs. Its stated priorities include strengthening awareness and use of the VA Home Loan Program and addressing barriers that keep veterans from achieving or maintaining homeownership.

Why Create a Veteran Housing Caucus?

One of the more remarkable statistics cited by the caucus is that only an estimated 15% of eligible veterans use the VA home loan benefit.

Think about that.

The VA loan can provide eligible borrowers with advantages such as no required down payment, no monthly private mortgage insurance and protections specifically designed for veterans.

Yet a large majority of veterans never use it.

Sometimes that is because another financing option makes more sense.

But sometimes it is because veterans do not fully understand the benefit, receive conflicting information about it or are working with people who simply do not know the VA program very well.

Congress appears to be recognizing that having a benefit available and making that benefit easy to use are two different things.

The VA Home Loan Navigator Act

One proposal that fits directly into that problem is the bipartisan VA Home Loan Navigator Act, H.R. 9404.

The bill would create a voluntary program providing veterans with access to free, independent housing counselors specifically trained in the VA home loan benefit.

Those counselors could help veterans with:

• Understanding VA home loan benefits.
• Obtaining or correcting a Certificate of Eligibility.
• Buying, refinancing and closing a VA mortgage.
• Understanding VA appraisal and property requirements.
• Working through servicing problems.
• Evaluating foreclosure-prevention and loss-mitigation options.
• Communicating with mortgage servicers and the VA.
• Understanding housing costs, fees and other financial obligations.

The legislation also includes conflict-of-interest protections intended to keep that counseling independent.

That makes sense to me.

The VA home loan is too valuable a benefit for a veteran to have to figure it out based on internet searches, social-media opinions or the experience level of whichever real estate or mortgage professional happens to answer the phone.

But here comes the familiar part of The Give and Take:

The bill was introduced in June and referred to the House Veterans’ Affairs Committee.

It has not become law.

And the VA Home Loan Affordability Act Is Still Waiting Too

We have also been following the VA Home Loan Affordability Act, H.R. 8532.

That bill would make a number of changes intended to modernize and streamline the VA home loan program, including provisions dealing with appraisals, refinancing, condominium financing, borrower costs and VA technology.

It was introduced in April.

A congressional hearing scheduled for June 25 was postponed.

As of this weekend, the official congressional record still lists the bill at the introduced stage, referred to the House Veterans’ Affairs Committee.

So again:

Good idea. No new benefit yet.

That distinction is important.

What About the Big Veterans Benefits Package?

The Take Care of America’s Veterans Act remains unresolved as well.

That is the legislation containing dozens of veterans provisions, including the Major Richard Star Act and expanded benefits affecting veterans, survivors and caregivers.

As we discussed previously, lawmakers largely agree on many of the benefits but have disagreed over how to pay for them, particularly proposed changes involving future disability compensation for conditions such as sleep apnea and tinnitus.

There was no breakthrough this week.

And there was not likely to be one.

The Senate is conducting only pro forma sessions during its August state work period and is scheduled to resume regular legislative business September 14. The House calendar shows members returning for legislative business beginning August 31.

So, for the moment, most of the congressional give and take is on hold.

But Your Mortgage Doesn’t Go on Recess

This is where I think veterans should separate Washington from their own financial decisions.

Congress may eventually improve the VA home loan program.

It may make refinancing easier.

It may provide better counseling.

It may streamline appraisals and other requirements.

Those proposals deserve attention.

But if you already have a VA mortgage, you do not have to wait for Congress to see whether the program available today can help you.

That is particularly true if you obtained your mortgage during a period when rates were above 7%.

VA borrowers may have access to an Interest Rate Reduction Refinance Loan, commonly called an IRRRL, that can provide a streamlined method of refinancing an existing VA mortgage when the numbers make sense.

A lower available rate by itself does not automatically mean you should refinance.

You still need to consider:

• Your existing interest rate.
• Your remaining loan balance.
• Your expected monthly savings.
• Closing costs.
• How long you expect to keep the mortgage.
• How long it takes for the savings to recover the cost of refinancing.

That is why I would rather have a veteran run the numbers than simply assume refinancing is—or is not—a good idea.

The Bottom Line

This week’s Give and Take is not about something Congress passed.

It is about something Washington finally seems to be recognizing:

The VA home loan benefit can only work as intended if veterans can understand it, access it and use it competitively.

Creating a bipartisan congressional focus on military and veteran housing is encouraging.

The VA Home Loan Navigator Act is encouraging.

The VA Home Loan Affordability Act is encouraging.

But none of those proposals is helping a veteran’s mortgage payment this morning.

So we will keep watching what Congress does when everyone gets back to Washington.

In the meantime, veterans should use the benefits and opportunities that are already available to them.

Because Congress may be on recess.

Your mortgage isn’t.

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Clay Edmonds is the Corporate Educator and Complete Mortgage Advisor at Complete Mortgage LLC in Hollywood, Florida, and the creator of MortgageSimplified.net. With over four decades of experience in real estate finance, Clay focuses on simplifying the mortgage process and helping borrowers and real estate professionals make smarter financing decisions.

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