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H.R. 3694: VA Loan Informed Disclosure Act of 2025

The bill, known as the VA Loan Informed Disclosure Act of 2025, proposes two main changes to existing housing finance laws aimed at enhancing the information provided to potential home borrowers related to VA loans and military service. Below are the key components of the bill:

1. FHA Informed Consumer Choice Disclosure

The bill aims to amend the Informed Consumer Choice Disclosure that must be provided to prospective borrowers of Federal Housing Administration (FHA) loans. The specific changes include:

Including information about VA home loans in the disclosure, which provides potential borrowers with essential understanding and options related to VA loans.
Requiring the disclosure to mention the loan-to-value ratio of VA loans along with prevailing interest rates, really outlining the context in which these loans operate.

It is noted that this amendment does not obligate lenders to assess a borrower’s eligibility for any loans described in the notice.

2. Military Service Question on Loan Applications

The bill also mandates that a military service question must be added to the Uniform Residential Loan Application. The requirements for this change include:

The question must ask about the applicant’s military service.
This question should be positioned above the signature line on the application form to ensure that it is easily noticeable and answered by applicants.

The bill stipulates that the Director of the Federal Housing Finance Agency must implement this change within six months following the enactment of the bill.

Implementation Timeline

Both amendments outlined in the bill have specific timelines for implementation, emphasizing the urgency in providing this information and ensuring the question on military service is included in loan applications promptly.