Posted on: May 31, 2018
Last Tuesday, President Trump signed the Economic Growth, Regulatory Relief and Consumer Protection Act which, for veteran homeowners, is good news.
There were a lot of parts of the act – which is also being called the Dodd-Frank Rollback – which different home buyers would want to pay attention to. For the most part, the rollback was designed to make lending easier for small banks while continuing to make things more difficult for big banks.
Home buyers and current homeowners will likely benefit from the act regardless of which program they use. Different programs got different benefits as well, but most veterans will be most interested in learning what VA loan benefits were changed with the act.
Perhaps the biggest change in the Dodd-Frank Rollback is the added protection for military members after they leave the service. In the past, some veterans have had a difficult time with foreclosure periods. Foreclosure proceedings were able to begin as early as nine months after military members left active duty.
Under the new law, military personnel will have an additional three months of protection from foreclosure. So, for the first year after leaving the military, personnel will be protected from foreclosure proceedings. This is a permanent change, and it will be offered to all veterans once it goes into effect.
Another change for military members regards credit. Under the new law, credit reporting agencies will be required to provide free credit monitoring services to active duty military personnel. Also, active duty personnel will also have access to credit freezes. This will be offered for free, and it should help many military members with their home eligibility when they are ready to purchase a home.
One of the big pushes with the Dodd-Frank Rollback was easing up on restrictions on small banks. Local banks should have an easier time lending under the new law. For example, in some rural areas, appraisals will not be required for some mortgage types if the price of the home is below $400,000. This will save home buyers money while shortening the amount of time it takes the loan to close.
However, some critics of the bill say that the overall effect could end up doing more harm to homeowners than good.
Time will tell which of the two happens, but for now, VA home buyers can be secure knowing that they have more protection, both during and after their active duty service.