Representatives of the Staten Island Board of Realtors were in Washington last week during the Realtor® Party Convention & Trade Expo.
At the event, which took place May 12 through May 17, members of the National Association Of Realtors met to advance the real estate industry, public policy, and the association. During a briefing before Realtors 0n Friday, officials from the Department of Veterans Affairs Home Loan Guaranty program said the agency is taking steps to improve services for active and former military service members who are ready to buy a home.
The VA Home Loan Guaranty program has guaranteed more than 20 million mortgages to American veterans, with a total loan volume of over one trillion dollars. Realtors® are strong supporters of this vital homeownership tool, which provides beneficiaries with a centralized, affordable and accessible method of purchasing homes.
“The VA would not be able to deliver the program to as many veterans without the help of Realtors®,” said Mark Connors, Air Force veteran and VA’s loan guaranty service lender liaison. The agency is going through a massive transition to make its loan process more efficient for buyers and housing industry professionals, such as Realtors® and lenders. For example, an automated underwriting system is being evaluated to help make credit risk assessments more seamless.
“Once veterans sign a contract, the VA wants to get them in the home with the least amount of bumps in the road,” said Zaneta Jones, VA supervisory loan specialist. Jones also talked about the agency’s new full file loan review system, which enables VA to cull and analyze data and identify systemic obstacles that should be reformed.
During the meeting, Realtors® expressed concerns that some of the VA loan requirements, such as pest inspections, disadvantage veterans because they may dissuade sellers from accepting offers that could potentially create additional fees, which cannot be paid by the home buyer. VA staff attorney Erica Lewis said the agency is studying the impact of the fees and may propose alternative regulations to amend the current structure. She also suggested that Realtors® request a waiver from the contracted property’s nearest VA field office to excuse the buyer from a particular fee restriction if the parties believe it is a local requirement.
