Bill > S2304

This bill aims to protect veterans from predatory lending practices. It includes several key provisions: 1. It requires lenders to recoup all fees, closing costs, and expenses associated with refinancing a VA loan within 36 months through lower monthly payments. 2. It establishes a "net tangible benefit test" for VA loan refinancing, requiring the new loan to have an interest rate at least 50 basis points lower for fixed-rate loans or 200 basis points lower for adjustable-rate loans, unless discount points are paid upfront. 3. It prohibits VA loan refinancing from being guaranteed or insured until the loan has been active for at least 210 days or 6 monthly payments have been made. 4. It directs the Secretary of Housing and Urban Development and Ginnie Mae to report on the liquidity of the VA housing loan program in the secondary mortgage market and recommend actions to maintain that liquidity. 5. It requires the VA Secretary to annually report on the refinancing of fixed-rate to adjustable-rate VA loans, whether veterans are properly informed of the risks, and whether advertising materials are clear and not misleading.

Military Affairs and Security

https://www.congress.gov/bill/115th-congress/senate-bill/2304/all-info