Policypaper pc15 pgs final

National military and veteran housing policy plan JUNE 7-10, 2015 路 WASHINGTON, DC 路 HYATT REGENCY ON CAPITOL HILL

MAKING THE AMERICAN DREAM A REALITY FOR THOSE WHO HAVE SERVED US

w w w.VA R E P. n et / Po l i c y C o n f er en c e

EXECUTIVE SUMMARY Overview, Key Findings, and VAREP’s Recommendations

Veterans are members of a protected class. Laws have been passed to increase hiring of veterans, increase contracting opportunities for veteran-owned businesses, suspend civil proceedings against servicemembers while deployed, provide foreclosure-prevention help for veteran homeowners, and penalize companies who prey on servicemembers through high-interest loans and investments scams. It is now time to address the financial-literacy needs and housing issues that many servicemembers and veterans face daily.

KEY FINDINGS AND RECOMMENDATIONS FINDING #1: Lack of Financial-Literacy Education and Training for Servicemembers & Veterans ·· 30% of veterans reported financial troubles, many of which began during military service. ·· 65% experienced stress related to their family’s current financial condition. ·· 84% agreed that greater focus should be placed on preventive financial education as a whole.

Source: 2014 University of Southern California Veteran Study & 2014 Blue Star Families Military Family Lifestyle Survey

RECOMMENDATION #1: Create and Conduct Annual Servicemember and Veteran Financial Health Audits

FINDING #2: Veteran Housing Education, Training, and Counseling Services are Non-Existent ·· 95% of veterans said they did not receive housing training and counseling while in service. ·· 85% of veterans said they did not receive VA Loan training during service, transitioning out, or post separation. ·· The VA does not have a national veteran housing counseling agency program. ·· HUD-approved housing counseling agencies are ill equipped to provide veteran housing counseling services. ·· The VA and HUD’s definition of homelessness is reactive and needs to be expanded to include earlier intervention.

Source: 2014 Veterans Association of Real Estate Professionals (VAREP) Veteran Housing Survey

RECOMMENDATION #2: Create a VA-Approved National Housing Counseling Program

FINDING #3: The VA Home Loan Benefit is without Proper Supportive Services Veteran Homeowners who did not use the VA Home Loan ·· 33.6% indicated they did not know about the program. ·· 62.8% (older veterans) said their lender never discussed the VA loan option with them. ·· 25.8% (younger veterans) said their lender never discussed the VA loan option with them. ·· 31.8% said a conventional and/or FHA mortgage was easier to obtain or less expensive. ·· 8.1% said their lender and/or REALTOR® discouraged the use of the VA loan.

Source: 2010 Department of Veterans Affairs - National Veterans Survey (NVS)

RECOMMENDATION #3: Introduce and Pass Veteran Lending, Credit Access, and Fair Housing Reform Legislation. Create a VA-Approved National Housing Counseling Program.

PAGE 1 · NATIONAL MILITARY AND VETERAN HOUSING POLICY PLAN

CALL TO ACTION Introduce, Support, and Pass Veteran Financial, Lending, and Housing Legislation

The time is now for lawmakers introduce, support, and pass legislation to address VAREP’s three recommendations concerning the servicemember and veteran financial, housing, and lending needs.

VAREP RECOMMENDED SOLUTION TO KEY FINDING NUMBER ONE: · · Phase #1: During Service - Assess the financial health of servicemembers on an annual basis to enable sufficient time, if needed, to restore financial health prior to military separation. · · Phase #2: Transitioning Out of Service - During TAP/ Transition GPS, have trained financial consultants conduct detailed financial analysis of separating service members’ financial health. · · Phase #3: Post Separation and Reintegration - The veteran-support nonprofit would continue the financial health audit post separation, as military personnel transition into civilian life, and would provide continued financial education, training, and counseling.

VAREP RECOMMENDED SOLUTION TO KEY FINDING NUMBER TWO: A VA-Approved National Veteran Housing Counseling Agency Program ·· Using HUD’s housing counseling agency program as a model, the VA needs to create a “Veteran Housing Counseling Agency” that provides financial, housing, and VA home loan information and counseling services to veteran families. Additionally, create VA financial loan incentives for veterans who have gone through the VA housing counseling services similar to HUD’s “Homeowners Armed with Knowledge (HAWK)” program.

VAREP RECOMMENDED SOLUTION TO KEY FINDING NUMBER THREE: Veteran Lending, Credit Access, and Fair Housing Reform ·· Add “Did you Serve?” as a military veteran identification trigger and data-collection point on the Fannie and Freddie Loan Applications. ·· Provide a better snapshot of the veteran lending experience by adding more military and veteran data-collection points to Home Mortgage Disclosure Act (HMDA). ·· Using HUD’s Informed Consumer Choice Disclosure Notice as a model, create a “VA Loan Informed Consumer Choice Disclosure” requiring lenders to give military and veteran consumers a side-by-side comparison of the VA loan vs. FHA vs. Conventional – Let military and veteran consumers choose for themselves. ·· Include servicemembers and veterans as a protected class under the fair housing law. This will ensure fair treatment for those who have served in terms of housing and lending. ·· Allow Community Reinvestment Act (CRA) credit for financial institutions who purposefully reach out to the Low-to-moderate (LMI) veteran community to give them the credit access they need.

EXECUTIVE SUMMARY & CALL TO ACTION · PAGE 2

Established in 2011, the USA Homeownership Foundation, Inc. DBA Veterans Association of Real Estate Professionals (VAREP), is a non-profit 501.c.3 organization dedicated to increasing sustainable homeownership, financial literacy education, VA loan awareness, and economic development for the active military and veteran communities. VAREP and its members represent and work within all sectors of the real estate, housing, and financial services industries. Our goal is to keep the American Dream of homeownership alive for servicemembers and veterans of all eras.

w w w . VA R E P. n e t VETERANS ASSOCIATION OF REAL ESTATE PROFESSIONALS 462 Corona Mall Suite 102 ∙ Corona CA 92879 info@VAREP.net ¡ 951-444-7363