VAREP Policy Program 2021 by Son Nguyen

VAREP 2021 POLICY CONFERENCE

· LIVE FROM VAREP NATIONAL JUNE 14, 2021 · 9:30 AM - 2 PM · VIRTUAL

HOSTED BY: VETERANS ASSOCIATION OF REAL ESTATE PROFESSIONALS

2021 VAREP POLICY CONFERENCE

The Veterans Association of Real Estate Professionals would like to thank our sponsors for making the 2021 VAREP National Policy Conference possible.

SESSIONS 1 & 3

HOME DONATION & SESSION 4

SESSION 2

NATIONAL

POLICY CONFERENCE TABLE OF CONTENTS LETTER FROM OUR FOUNDERS: SON NGUYEN & DUSTIN LUCE PAGE 3 Our VAREP Leaders talk about the mission of the 2021 VAREP Policy Conference. Be empowered to serve our Heroes! CONFERENCE AGENDA

PAGE 4

HOW VAREP’S HUD HOUSING COUNSELORS CAN HELP YOU SUCCESSFULLY APPLY FOR A LOAN WORKOUT! PAGE 7 Today, we’d like to provide an overview of what a HUD Housing Counselor does and how we can help our VAREP members be more successful in helping their clients achieve the dream of homeownership, by obtaining, maintaining, and sustaining homeownership. THE BEST MARKETS ACROSS THE COUNTRY PAGE 13 FOR REAL ESTATE INVESTORS IN 2021 A bill becoming a law requires a lengthy process, and many bills don’t make it through. This infographic explains the process.

PAGE 25 2021 VAREP POLICY POSITION PAPER Established in 2011, the USA Homeownership Foundation, Inc. (DBA VAREP) is a 501.c3, HUD-approved, counseling agency dedicated to improving the lives of servicemembers and veterans through housing and philanthropy. In December 2019, we incorporated our veteran services division as a 501.c19, non-chartered Veteran Service Organization (VSO) to expand our reach and resources in supporting veterans PAGE 33 HOUSE A VET: RONALD PUGH Read about our most recent home recipient through the VAREP House a Vet Program. A WORD FROM G-II VARRATO, NATIONAL LEGISLATIVE COMMITTEE CHAIRMAN Not sure where to eat tonight? This list of local restaurants should help you out!

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HOW DOES A BILL BECOME A LAW PAGE 21 A bill becoming a law requires a lengthy process, and many bills don’t make it through. This infographic explains the process. RIDING THE WAVES TO A NEW PIER PAGE 23 Stop Drop & Push introduces AmpSurf, their story and how SDP will help with their mission to Promote, Inspire, Educate, and Rehabilitate (PIER).

2021 VAREP POLICY CONFERENCE A LETTER FROM OUR FOUNDERS SON NGUYEN & DUSTIN LUCE

INCREASING SUSTAINABLE VETERAN HOMEOWNERSHIP Dear Policy Conference Attendees: On behalf of the Veterans Association of Real Estate Professionals (VAREP), we would like to welcome you to the 2021 VAREP Virtual Policy Conference. This is VAREP’s seventh Policy Conference in which your voices will be heard on Capitol Hill to help with removing barriers to veteran homeownership. Your attendance is invaluable! Although this conference Is virtual, we continue to be the voice of veteran housing through our chapter Government Affairs Directors (GAD). A shout out to GII Varrato, the National Legislative Committee (NLC) Chair and Its committee members for leading the advocacy efforts. The NLC and Chapter GADs have spent the last couple months conducting virtual meetings with the Congress and Senate members. The 2021 VAREP Policy Position has one purpose - Have Congress introduce and pass a bill making VAREP a federally chartered Veteran Service Organization (VSO).

PUBLISHER USA Homeownership Foundation, Inc. DBA Veterans Association of Real Estate Professionals EDITOR Allana Daniels CR E ATIVE SR. GRAPHIC DESIGNER Jesus Lopez GRAPHIC DESIGNER Nick Preston IT/PROGRAMMER Francisco Labias WEB DEVELOPER Jake Moya MEDIA DIRECTOR Daniel Rodarte

Why achieving a federally charted VSO status important to VAREP’s mission?

JUNIOR VIDEO EDITOR Elijah Magana

The Department of Veteran Affairs (VA) offers FIVE basic veteran benefits: 1. disability, 2. compensation, 3. pension, 4. education, and 5. home loan guaranty.

SPONSOR S

When a veteran wants to discuss service-connected disabilities, compensation, education, and medical care, a Veterans Service Organization (i.e., VFW, American Legion, DAV, AMVETS) is there to help them through the process. However, this is not the case when it comes to veteran housing (i.e., VA loan, rental assistance, homeownership, homelessness, financial literacy, workforce development, veteran housing discrimination) issues. It is clear to us that veterans need an advocate in housing. Achieving a federally chartered VSO status will allow VAREP to help millions of veterans with their housing needs. All of us have been diligently working on this point for the past several years, however, we feel that our efforts are paying off and this will be accomplished. If not this year, then next year…bottom line, we will not retreat nor surrender our conviction of this mission. The veteran community needs us and we will not fail them! Respectfully,

SON NGUYEN FOUNDER & HEAD SERVANT

DUSTIN LUCE CO-FOUNDER

EDITOR IAL

JP MORGAN CHASE Sessions 1 & 3 BANK OF AMERICA Home Donation & Session 4 CALIBER HOME LOANS Session 2

CONTACT VAR E P 951 · 444 · 7363 info@VAREP.net 495 E. Rincon St., Suite 110 Corona CA, 92879

AGENDA JUNE 14 · MONDAY · 9:30AM - 2PM PST 9:30AM - 10:35AM · Opending General Session 2021 Policy Position Established to advocate on behalf of veterans, Veterans Service Organizations (VSO) provide veteran-specific resources. Many are federally chartered (officially recognized by Congress) are private, non-profit organizations run by volunteers. The federally chartered designation is especially important as the chartered organizations are also officially recognized by the VA secretary to represent veterans. Attendees will hear from our National Legislative Committee Chair about our efforts in making this happening for VAREP. 10:35AM - 11:35AM · General Session #2 VA Loan Program Debrief Senior officials from the Department of Veterans Affairs will debrief attendees about the VA loan usage, statistics and any new developments. 11:35AM - 11:40AM · Housing Counseling Success Story 11:40AM - 12:40PM · General Session #3 State of the Market Part I: Bank Panel Discussion The real estate market is HOT and the rates are low. Will this trend continue? Attendees will hear from key executives with some of the nation’s largest banks about the 2021 trends, new regulations, and market conditions. 12:40PM - 12:45PM · VAREP Cares 12:45PM - 1:00PM · Home Donation In partnership with Bank of America, we will be awarding a deserving hero a mortgage-free home donation. 1:05PM - 1:55PM · General Session #4 State of the Market Part II: Housing Expert Panel The problem with making any predictions about this year is that there are almost no precedents or models that can help experts determine what’s likely to happen. However, attendees will hear predictions from Boots on the Ground subject matter professional opinions based upon trends and Data. 1:55PM - 2:00PM · Conclusion God Bless the USA

45 HOMES DONATED MORTGAGE-FREE TO DESERVING HEROES

291 HOMES REMODELED & SOLD TO VETERANS, FIRST RESPONDERS, TEACHERS AND CIVIL SERVANTS

$5.6 MILLION SPENT ON HOME REHABILITATION FOR MORTGAGE-FREE DONATIONS AND VETERAN RESALE PROGRAM

$70,000

HOUSING ASSISTANCE GRANTS FOR DOWN PAYMENT, CLOSING COST AND ADAPTIVE HOUSING CONSTRUCTIONS

3,100 + VETERANS EDUCATED ABOUT HOMEOWNERSHIP

1,620 + FAMILIES WERE HELPED THROUGH VAREP CARES

1,000 VETERANS PLACED IN HOMES THROUGH OUR PROGRAMS

10,000 AGENTS & LENDERS EDUCATED ABOUT THE VA LOAN

119 HOUSING SUMMITS VETERAN

TO EMPOWER VETERAN HOMEOWNERSHIP 4

2021 VAREP POLICY CONFERENCE

Working together to help make homeownership a reality. Our home lending experience and services help all types of customers get the homes they want. At Chase, we take special pride in helping those eligible to apply for Veterans Affairs (VA) loans that may offer no down payment and no monthly mortgage insurance (MI). Plus with the Chase Closing Guarantee, your clients are guaranteed on-time closings or they get $2,500 back.1

To learn more, visit ChaseMilitary.com.

This offer is for Chase customers. Ask a Home Lending Advisor about eligibility, timing and documentation requirements. Contract closing date must be at least 21 calen

type, property type and other restrictions and limitations apply. This offer is subject to change at any time without notice. All home lending products are subject to credit and states or for all amounts. Other restrictions and limitations apply. The Chase Closing Guarantee may be reported on Form 1099-MISC. Your clients should contact their ta document is not an advertisement for consumer credit as defined in 12 CFR 1026.2(a)(2). Borrowers must identify themselves as veterans or members of the U.S. military. Do Home lending products offered by JPMorgan Chase Bank, N.A. ©2019 JPMorgan Chase & Co. 63655AB 0527

ndar days after receipt of a completed mortgage application, supporting documents, and a fully-executed purchase contract. Loan d property approval. Rates, program terms and conditions are subject to change without notice. Not all products are available in all ax advisor or the IRS for more details. For real estate and lending professionals only and not for distribution to consumers. This ocumentation of service may be required to receive Military Mortgage Benefits. Restrictions and limitations apply.

2021 VAREP POLICY CONFERENCE

HOW VAREP’S HUD HOUSING COUNSELORS CAN HELP YOU SUCCESSFULLY APPLY FOR A LOAN WORKOUT!

"Our counselors are experts in their field and funded through government and private foundation grants to help you and your clients at no cost."

The Colon family was going to lose their home if they weren’t able to pay the lender three months of back payments on their mortgage. (check out their story here: https://www.facebook.com/usahomeownership/ videos/239074221092369) With Mr. Colon being on active duty with the Army and on deployment and the family just having moved to Virginia, they were in a really tight spot and needed help quickly. Mr. Colon found and utilized USA Homeownership Foundation’s HUD Housing Counseling Department, and our team of HUD Certified Housing Counselors were able to step in and help. This is what we do every day, Vets helping Vets and other servicemembers provide housing solutions.

USA Homeownership Foundation offers no cost rental, credit, foreclosure prevention, and Homebuying counseling and educational workshops. Today, we’d like to provide an overview of what a HUD Housing Counselor does and how we can help our VAREP members be more successful in helping their clients achieve the dream of homeownership, by obtaining, maintaining, and sustaining homeownership. USA Homeowership Foundations (VAREP’s nonprofit organization) HUD-approved housing counselors provide foreclosure prevention counseling and assistance in applying for a loan modification—all at no cost. If you or your clients are facing a foreclosure, the sooner you talk to a housing counselor, the better. You can have no better advocate if you're trying to work out a loan modification or other loss mitigation option. What does USA Homeownership Foundation’s HUD Housing Counselor Do? Our HUD Certified Housing Counselor acts as your advocate if you’re trying to avoid a foreclosure, buy a home, resolve your rental issue or improve your credit. Our counselors are experts in their field and funded through government and private foundation grants to help you and your clients at no cost. They’re well trained in the various ways you might be able to prevent a foreclosure and can explain your loan workout options. Your housing counselor can help assess your loan situation and work with your servicer to try to find an option that will keep you in your house. It might include filing for a forbearance, completing a modification or refinancing your loan. If a client decides they want to sell their home, a counselor will help them apply for a short sale and provide information about this option. If their VAREP member has referred them over to us, we’ll send them right back

to that member, but we do recommend that you keep in touch with your client to stay on top of their situation.

HOW HOUSING COUNSELING WORKS When you contact our Housing Counseling department, you’ll be asked to complete our online intake form and 3rd party authorization form online (www.myhomeownership.org) and then we will schedule a counseling appointment. During the counseling session, our housing counselor will: Discuss your current financial situation. Review and evaluate your current spending and income. Help you to figure out a budget that will set the maximum amount you’re able to pay towards your mortgage each month. Explore your hardship and the reasons why you fell behind in payments. Help you figure out what loan workout options are best for you. Create an action plan and recommend next steps. During the counseling session, the counselor will want to get a handle on your overall financial situation; they'll ask about your income, your debts, your assets, your mortgage, and the value of your home. So, before the appointment, it’s a good idea to gather up information about your finances, including: recent billing statements for your first and any other mortgages current pay stubs and other documentation showing any income you receive (if you’re selfemployed, an up-to-date profit and loss statement) recent tax returns monthly household expenses account balances and monthly payments due on all of your credit cards, student loans, car loans, and so on, and information about your savings and other assets.

2021 VAREP POLICY CONFERENCE

Applying for a Modification or Other Option Your housing counselor will assist you with contacting your servicer and requesting a loan modification package. You’ll fill it out and return the forms with the help of your counselor. Then, the servicer will review your income, debt, and hardship to determine whether you’re eligible for a foreclosure avoidance option. If you are approved, your counselor will then review your options and explain the process for completing the terms of the loan modification. If you are not successful, they will review the reason for the denial and try to help you over come it.

Can a HUD-Approved Housing Counselor Always Help? Housing counselors can do a lot, but they’re limited by the servicer and investor (loan owner) policies, called "loss mitigation guidelines." These guidelines set out the rules and eligibility requirements for modifications. So, you might not qualify for an alternative to foreclosure, no matter what you or the counselor does. Your housing counselor will be honest and give you their unbiased opinion and go over the best options for you as well as next steps.

"Even if you think you won’t qualify for a modification or other foreclosure alternative or that you can do it yourself, it certainly doesn’t hurt to talk to our housing counselor." 9

There are many misconceptions surrounding loan workouts and options, so even if you think you won’t qualify for a modification or other foreclosure alternative or that you can do it yourself, it certainly doesn’t hurt to talk to our housing counselor. In fact, most homeowners are more successful when working with a housing counselor when submitting their loan modification applications simply because counselors know the loan modification guidelines and programs available. The best option is to work with your housing counselor as soon as you know you’ll be having a hardship and way before your forbearance plan ends.

Currently there is a Federal Foreclosure Moratorium until 6/30/21 so all homeowners are protected until that date. Under federal law, and some state laws, a servicer can’t start or continue with a foreclosure while your completed application is pending. You might end up getting a more affordable mortgage payment for the future or qualify for a loss mitigation option that you hadn’t previously considered.

How to Work with USA Homeownership’s HUD-Approved Housing Counselors We encourage all of our dedicated VAREP members and partners to share this information with your clients, family, and friends. You can help us be the boots on the ground to spread the word that our HUD Housing Counseling Department is here to help our communities by providing the following services: Rental Counseling Foreclosure Prevention, Loan Modification, and Forbearance Plans Credit, Budgeting & Financial Management Homebuying, Down Payment Programs and First Time Buyer Loans VA Loans & Certificate of Eligibility HUD Home Buyer Certificate good for 1st Time Buyer Loans and Down Payment Assistance Programs If VAREP members have Veterans, Service Members or Patriots that need any type of rental, foreclosure prevention, Home Buying, VA Loan, Down Payment, Credit, or Financial Literacy counseling please refer them to our Housing Counseling Department to speak with our HUD Housing Counselors.

GETTING HELP FOR YOUR CLIENTS IS AS EASY AS 1, 2, 3

1. Contact Contact our Housing Counseling Department by visiting our website at www.myhomeownership. org click on counseling and complete the online intake forms. And view our short video on Housing Counseling services: http://www. myhomeownership.org/counseling/

2. Call Call our toll free number 888. 273.7267

3. Email Email your request to Mindy Ramlogan , Housing Counseling Administrative Assistant, at mramlogan@varep.net .

2021 VAREP POLICY CONFERENCE

VAREP NATIONAL STAFF

Carla Lemon

Ernie Gonzales

Jesus Lopez

Nick Preston

Association Director

Assistant Association Director

Senior Graphic Designer

Junior Graphic Designer

Patriot

U.S. Army

Patriot

U.S. Navy

Francisco Labias

Jacob Moya

Daniel Rodarte

Elijah Magana

IT/ Programmer

Web Developer

Media Director

Junior Video Editor

Patriotl

Patriot

U.S. Air Force

Patriot

Buffy Mesa

Grethchen McCroskey

Connie Der Torossian

Thomas Griffin

Accountant

Asset Manager

Program Manager

HUD Certified Counselor

Patriot

U.S. Marine Corps

Mindy Ramlogan

Gabriel Cornejo

Kyle Clark

Allana Daniels

Administrative Assistant

Asset Manager

Administrative Assistant

Patriot

U.S. Marine Corps

Patriot

VAREP National

Tamra Coulter House-A-Vet Coordinator Patriot

2021 VAREP POLICY CONFERENCE

The Best Markets Across the Country for Real Estate Investors in 2021 Whether you’re a fix-and-flip, or buy-and-rent investor, or a real estate agent who works with investors, the old adage is true when it comes to real estate: the three most important things are “location, location, location.” For many investors, especially those just starting out, there’s a strong preference toward buying properties near where they live. In fact, the majority of investors probably purchase properties within a two or three hour drive from their home. But in today’s market, with historically low levels of inventory and unprecedented demand from prospective homeowners, some markets simply don’t have anything available for sale. And since high demand and low supply generally drives prices up – and this has absolutely been true in the 2021 housing market – some investors just can’t afford to buy properties in their hometown. So, for investors looking to venture forth beyond their backyards in search of the ultimate investment opportunities, where are the ideal locations to invest in real estate? RealtyTrac’s parent company ATTOM Data Solutions just released two reports that identify some of the best markets in the country for real estate investors. Best Single Family Rental Markets For single family rental investors, ATTOM’s 2021 U.S. Single Family Rental Report analyzed data from 495 U.S. counties, showing that the average annual gross rental yield so far 2021 is 7.7 percent, down from an average of 8.4 percent in 2020. The report also noted that the potential annual gross rental yields for 2021 decreased compared to 2020 in 86.9 percent of the counties included in the analysis. But the news is not glum everywhere. There are a number of markets with high rates of return, and more than a few where demographic and economic trends suggest future growth.

The 2021 market report noted that among the top 50 highest rental returns for counties analyzed in 2021, 25 are in the Midwest, 15 are in the South and 10 are in the Northeast. According to the report, counties with the highest potential annual gross rental yields for 2021 include Schuylkill County, PA, in the Pottsville metro area (26.1 percent); Bibb County, GA, in the Macon metro area (18.1 percent); Baltimore City/County, MD (16.2 percent); La Salle County, IL, in the Ottawa metro area (14.1 percent) and Chautauqua County, NY, in the Jamestown metro area (13.7 percent). The report also identified 61 “SFR Growth” counties where average wages grew over the past year and the potential 2021 annual gross rental yields are 10 percent or higher. These 61 SFR Growth markets include Milwaukee County, WI; Shelby County (Memphis), TN; Monroe County (Rochester), NY; Jefferson County (Birmingham), AL; and Baltimore City/County, MD. ATTOM also ranked the top 10 “SFR Growth” counties with the greatest annual increases in rental returns, among those counties where average wages grew over the past year and the potential 2021 annual gross rental yields were above 10 percent. Those counties include Calcasieu County, LA (29.7 percent increase from 2020); Erie County, PA (13.4 percent increase); Licking County, OH (13.3 percent increase); Delaware County, IN (12.7 percent increase); Tazewell County, IL (12.2 percent increase); Lorain County, OH (12.0 percent increase); Wichita County, TX (10.9 percent increase); Clark County, IN (7.4 percent increase); Bibb County, GA (5.8 percent increase); and Miami County, OH (4.2 percent increase).

2021 VAREP POLICY CONFERENCE

ATTOM’s 2021 SFR market report noted that with home prices rising faster than rents in most of the country, home ownership may become even less affordable, placing upward pressure on rents. According to the analysis, single-family home prices are rising faster than rents in 86.9 percent of the counties analyzed, including Los Angeles County, CA; Cook County (Chicago), IL; Harris County (Houston), TX; Maricopa County (Phoenix), AZ and San Diego County, CA. The report also noted that rents rose faster than single-family home prices in 13.1 percent of the counties analyzed, including Duval County (Jacksonville), FL; San Francisco County, CA; San Mateo County, CA, in the San Francisco metro area; Fort Bend County, TX, in the Houston metro area and Kane County, IL, in the Chicago metro area. Best Markets for Fix-and-Flip Investors ATTOM also recently released its 2020 Year-End U.S. Home Flipping Report, which revealed that both home flipping sales and home flipping profit margins declined across the U.S. in 2020, with just 241,630 single family homes and condos flipped. That number was down 13.1 percent from 2019 to the lowest point since 2016. ATTOM’s reported that the number of homes flipped in 2020 represented 5.9 percent of all home sales in the nation during the year, down from 6.3 percent in 2019. Those declines marked the first time since 2014 that both the number of homes flipped and flips as a percent of all home sales decreased annually. The year-end analysis also showed that while home flipping activity declined, gross profits rose, but profit margins declined, marking the third straight year of declining ROI for investors. The report noted that flips in 2020 generated an average gross profit of $66,300 nationwide, up 6.6 percent from $62,188 in 2019 to its highest point since at least 2005. But that profit of $66,300 translated into just a 40.5 percent ROI compared to the original acquisition price, down from 41.5 percent in 2019 and from 46.4 percent in 2018. The 2020 year-end home flipping analysis stated that among the 6,806 U.S. zip codes included in the analysis, there were 10 with a population of 5,000 or more and at least 10 home flips in 2020 where flips accounted for at least 25 percent of all home sales last year – all in the Midwest and Southeast. Those zip codes were 38116 in Shelby County (Memphis), TN (31.5 percent); 45207 in Hamilton County (Cincinnati), OH (29.8 percent); 38127 in Shelby County (Memphis), TN (28 percent); 38115 in Shelby County (Memphis), TN (27.8 percent) and 38128 in Shelby County (Memphis), TN (27.5 percent). Among U.S. zip codes with a population of 5,000 or more and at least 10 flips in 2020, the top 10 zips with the most flips included: 38127 – Memphis, TN (244 homes flipped in 2020); 85142 – Queen Creek, AZ (209 homes flipped); 34668 – Port Richey, FL (200 homes flipped); 37042 – Clarksville, TN (196 homes flipped); 85138 – Maricopa, AZ (194 homes flipped); 85351 – Sun City, AZ (190 homes flipped); 85032 – Phoenix, AZ (186 homes flipped); 08757 – Toms River, NJ (184 homes flipped); 28269 – Charlotte, NC (182 homes flipped); and 38128 – Memphis, TN (167 homes flipped).

The typical gross profits in those top 10 zips with the most homes flipped in 2020 were: 38127 – Memphis, TN ($50,200); 85142 – Queen Creek, AZ ($37,001); 34668 – Port Richey, FL ($53,250); 37042 – Clarksville, TN ($53,700); 85138 – Maricopa, AZ ($27,250); 85351 – Sun City, AZ ($53,875); 85032 – Phoenix, AZ ($81,300); 08757 – Toms River, NJ ($112,250); 28269 – Charlotte, NC ($24,000); and 38128 – Memphis, TN ($49,900). Opportunities Are Everywhere – if You Know Where to Look While many of the markets ATTOM rates as being the best for fix-and-flip or buy-and-rent investors are located in the Midwestern and Southeastern states, there are also opportunities noted in the Northeastern, Southern, and even Western states. Most seasoned investors believe there are opportunities in virtually every market, for investors who are willing to do their homework and get to learn how to best navigate local market trends. Savvy agents can help these investors succeed, while generating a steady stream of revenue for themselves. For agents and investors looking for off-market and below-market opportunities, properties in various stages of foreclosure are often a good place to begin their search. And no one has a broader, more comprehensive national database of foreclosure properties than RealtyTrac. Visit www.realtytrac.com today to begin your search for your next great investment property.

2021 VAREP POLICY CONFERENCE

The Caliber Difference

Caliber Home Loans, Inc. is a dedicated national mortgage lender and servicer. We are committed to being a trusted resource in meeting the specific mortgage needs of the brave men and women of the United States Armed Forces who serve or have served our country with resolute sacrifice. Since our only business is home financing, we provide our real estate agents and their clients with higher levels of service and more financing options than many other lenders.

What Sets Us Apart?

Our status as an approved VA lender, combined with our strong financial standing, gives us more control over the products we offer. What’s in it for you and your homebuyers? Plenty! ■

■

Options with Lower Closing Costs: Clients may buy sooner without waiting to save up a down payment or spending their savings. Direct Lender: We will process and underwrite your clients’ VA loans in-house, and provide both of you with regular status updates via text, email or both. Fast Turn Times: We process and underwrite our VA loans with our proprietary loan origination system. VA Loans aren’t hard: Taking the confusion out for YOU and your clients! Military and veteran homebuyers can rely on their Caliber lending professional to guide them through the mortgage loan application process and answer their questions

Caliber Home Loans, Inc., 1525 S. Belt Line Rd Coppell, TX 75019 (NMLS #15622). Copyright © 2021. All Rights Reserved. Equal Housing Lender. Intended for real estate and lending professionals only. (42028)

Military Friendly Caliber is committed to supporting you and your clients. We have been a repeat Military Friendly employer for the last 5 years.

Calber Military and Veteran Lending Professionals We have made a major commitment to our nation’s Veteran and Active Military homebuyers. Part of this commitment included the creation of specialized, in-house educational curriculum that prepared team members to meet the changing needs of our military borrowers. Loan Consultants and Branch Managers who successfully complete the initial requirements and commit themselves to continued education, earn the designation of Caliber Military and Veteran Lending Professional.

The Challenge Coin Originally designed to recognize and reward soldiers, the tradition of the Challenge Coin within the U.S. military first began 100 years ago. Challenge coins are prized by their owners, and other non-military organizations such as the NFL and NASCAR now issue their own versions. Caliber Home Loans is proud of their own custom Challenge Coin. Each United States Armed Forces borrower receives a Caliber Challenge Coin upon their closing to symbol their honor, loyalty and commitment.

Caliber Military Spouse Advisory Council A council that is first of their kind. The council will provide a forum for issues concerning military and veterans’ families regarding homeownership. The council’s purpose is to conduct a community needs assessment, learn about the unique needs and challenges facing military and veteran homebuyers, and identify services, resources and programs that will meet the needs identified.

Together, we can help our military buy the home they deserve. To learn more contact us at: military@caliberhomeloans.com or visit it online at: military.caliberhomeloans.com

2021 VAREP POLICY CONFERENCE

VAREP NATIONAL BOARD OF DIRECTORS

Christine Olfus

Chairman

National Board of Directors

Patriot

U.S. Army

Patrick Diomede

Ricardo Pacheco

Robert Hipwell

National Board of Directors

U.S. Marine Corps

U.S. Army

Sandy Heath 19

Rommel Guzman

Ruben Peña

Gary Johnson

National Board of Directors

U.S. Marine Corps

Patriot

VAREP NATIONAL COMMITTEES

G-II Varrato NLC Chair U.S. Air Force

Yeimalis Acevedo-Rasmussen NLC Member Patriot

Robbie Grossman Lynn Jabs

Nacho Castro

NLC Member

Patriot

U.S. Army

Dex Cajigal

Victoria Blass

Michael Hamilton Jaimie Garrett

NLC Member

NEC Chair

Julie Owens NEC Member

U.S. Marine Corps

Patriot

Stephen DeMuth

Jeff Wilson

John Miller

Sean Selters

Dex Cajigal

NEC Member

SDP Co-Chair

Patriot

U.S. Army

U.S. Air Force

U.S. Army

U.S. Marines

LEGISLATIVE COMMITTEE EDUCATION COMMITTEE Tamra Coulter

Michelle Sweeney

SDP Co-Chair

SDP Committee Member

Patriot

STOP DROP & PUSH COMMITTEE 20

2021 VAREP POLICY CONFERENCE

Courtesy of

HOW DOES A BILL BECOME A LAW? 1. EVERY LAW STARTS WITH AN IDEA

2. THE BILL IS INTRODUCED

3. THE BILL GOES TO THE COMMITTEE

That idea can come from anyone, even you! Contact your elected officials to share your idea. If they want to try to make it a law, they will write a bill.

A bill can start in either house of Congress when it’s introduced by its primary sponsor, a Senator or a Representative. In the House of Representatives, bills are placed in a wooden box called “the hopper.” the

Representatives or Senators meet in a small group to research, talk about, and make changes to the bill. They vote to accept or reject the bill and its changes before sending it to the House or Senate floor for debate or to a subcommittee for further research.

4. CONGRESS DEBATES AND VOTES Members of the House or Senate can now debate the bill and propose changes or amendments before voting. If the majority vote for and pass the bill, it moves to the other house to go through a similar process of committees, debate, and voting. Both houses have to agree on the same version of the final bill before it goes to the President.

5. PRESIDENTIAL ACTION When the bill reaches the President, he or she can do one of four things: Approve and Pass Veto No action Pocket Veto A bill will only become a Law once the President signs and approves the bill.

VETO

NO ACTION

POCKET VETO

The President rejects the bill and returns it to Congress with the reasons for the veto. Congress can override the veto with 2/3 vote of those present in both the House and the Senate and the bill will become law.

The President can decide to do nothing. If Congress is in session, after 10 days of no answer from the President, the bill then automatically becomes law.

If Congress adjourns (goes out of session) within the 10 day period after giving the President the bill, the President can choose not to sign it and the bill will not become law.

“It’s more than a house, it’s their childhood home.” Homeownership is more than today’s goal, it’s tomorrow’s reality. Bank of America’s First-Time Homebuyer Online Edu-Series™ can help you get one step closer to making it happen. Get free resources and educational videos to help you learn about:

Lowering upfront costs Affordable loan options 5 steps to buying a home

Learn more at bankofamerica.com/homebuyer Bank of America First-Time Homebuyer Online Edu-Series is a trademark of Bank of America Corporation. Bank of America and the Bank of America logo are registered trademarks of Bank of America Corporation. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Bank of America, N.A. Member FDIC. Equal Housing Lender ©2021 Bank of America Corporation. All rights reserved. MAP3545044 | AD-05-21-0451.A | 04/2021 22

2021 VAREP POLICY CONFERENCE

Riding The Waves to a New PIER Promote, Inspire, Educate, & Rehabilitate

By: Tamra Coulter, SDP Program Director 23

The Stop Drop Push Campaign’s committee has been busy this year following up and calling all of the alternative therapy providers in its database. Updating whether the organization was still in business and if they were still able to assist new veteran clients in need. Through the committees’ efforts we ran into an amazing organization that not only is still helping veterans but is doing so on an ongoing basis. We are proud to introduce you all to AmpSurf. AmpSurf™ is a 501(c)(3) non-profit organization established to Promote, Inspire, Educate, and Rehabilitate (PIER) all people with disabilities and their families through Adaptive Surf Therapy and other outdoor activities. Every week they have what is called “VetSurf Friday”. They drive from Pismo Beach, CA to Fresno, CA to pick up a group of veterans, drive them back to Pismo for the day and teach them how to surf, then back in the van to head home. AmpSurf does this on limited funds and is in need of assistance to keep moving forward and serve even more veterans. After vetting each other and convincing their founder, Dana Cummings, that Stop Drop & Push were the real deal, Stop Drop & Push began strategizing to see how we can work together to help even more veterans receive the alternative therapy needed in their continued path of healing. We are very proud to announce for three months (June, July and August) that Stop Drop Push Campaign and VAREP will be sponsoring their VetSurf Friday program. Stop Drop & Push will be paying for their gas every Friday both ways, along with breakfast and lunch, making this therapy program 100% cost free to the veterans. Please be sure to Like and Follow not only our pages at Stop Drop Push and VAREP but also AmpSurf. Helping and Healing our veterans one Veteran at a Time.

2021 VAREP POLICY CONFERENCE

2021 VAREP NATIONAL POLICY CONFERENCE

Established in 2011, the USA Homeownership Foundation, Inc. (DBA VAREP) is a 501.c3, HUD-approved, counseling agency dedicated to improving the lives of servicemembers and veterans through housing and philanthropy. In December 2019, we incorporated our veteran services division as a 501.c19, non-chartered Veteran Service Organization (VSO) to expand our reach and resources in supporting veterans

Our Ask: Grant VAREP Congressional Charter Recognition Under U.S. Code 36, Part B. BACKGROUND

The Department of Veteran Affairs (VA) offers FIVE basic veteran benefits: 1. disability, 2. compensation, 3. pension, 4. education, and 5. home loan guaranty. Congress saw it fit to grant Title 36 Charters to approximately 92 corporations. Most notably of these were the VFW, American Legion, DAV, and AMVETS - a.k.a. the “Big Four”. In fulfilling the charter responsibilities, these VSOs assist, file, and manage veteran’s disability, compensation, pension, and education claims with the VA. In doing so, these VSOs serve as a resource to Congress in executing the benefits veterans deserve. THE FORGOTTEN BENEFIT – THE VA HOME LOAN GUARANTY BENEFIT.

Four of the Five benefits have chartered VSOs. These VSOs are empowered to help educate, oversee, and guide veterans on fulfilling the cumbersome requirements needed to obtain them. With that said, why is it the VA Home Loan Guaranty does not? The VA Home Loan Guaranty Benefit is much more than a loan for a home. It is a demonstrative process of understanding financial literacy, maintaining good credit, making wise money decisions, recognizing and reporting rental and housing discrimination, avoiding predatory lending, maintaining a job, accessing SSVF/ HUDVASH homelessness resources, and understanding the VA Home Loan Benefit without duress.

BIAS AGAINST THE VA HOME LOAN GUARANTY BENEFIT

In January 2021, VAREP sampled several local REALTOR® associations’ 2020 MLS data of homes sold and compared them to instances where the VA Home Loan Guaranty Benefit WAS NOT offered as a financing option. Maricopa County, AZ - 105,376 Closed Transactions • 48% were not afforded VA Home Loan Guaranty Benefit financing options • 7.2% of all sales were the result of VA Home Loan Benefit

Carson County, NV - 42,140 Closed transactions • 52% were not afforded VA Home Loan Guaranty Benefit financing options • 9.9% of all sales were the result of VA Home Loan Benefit

Minnesota and West Wisconsin - 1,532 Closed transactions • 75% were not afforded VA Home Loan Guaranty Benefit financing options • 7.7% of all sales were the result of VA Home Loan Benefit

Analysis: Over half the properties sold did not offer the VA Home Loan Guaranty Benefit as a financing option. Of the closed homes many veterans who qualified for a VA home loan were steered away from the benefit for which they served and sacrificed. THIS IS NOT ACCEPTABLE!

THE NEED - SUPPORTING DATA FOR OUR ASK

The following information offers a high-level view of results found in a 2020 VAREP survey, a 2010 VA National Veterans survey, and a 2013 Study: • 65% said they did not think they could ever own a home. • 95% said they did not receive housing counseling or VA loan education while serving or during post separation. • 95% said they wanted follow-up with home buying counseling services and education. • 33.6% indicated they did not know about the VA Home Loan Guaranty Benefit program. • 8.1% said their lender and/or REALTOR® discouraged the use of the VA loan. • 30% reported money mismanagement (e.g., bouncing or forging a check, going over one’s credit limit, falling victim to a money scam in the past year) was associated with homelessness in the next year. It was also mentioned that money mismanagement attributed to an arrest history, mental health diagnosis, and lack of income.

2021 VAREP POLICY CONFERENCE WHAT WE DO

At NO COST to the veteran, we have helped thousands of veterans with the following services: • As a HUD-approved housing affiliate, we represent veterans facing foreclosure to the banks. We help them achieve resolutions for late payments, and loan workouts to avoid foreclosure. No other HUD affiliate has the expertise of the veteran culture as we do. This service has been ESSENTIAL but overlooked.

• Provide workforce training during veteran reintegration and provide resources for veteran entrepreneurship.

• Work with servicemembers and their spouses to ensure banks adhere to the Servicemembers Civil Relief Act.

• Educate veterans on topics such as banking, budgeting, saving, and maintaining good credit. Plus it addresses the benefits of homeownership, the VA Home Loan Benefit, and incorporates our H.E.L.P. curriculum.

• Assist veterans with resources to achieve suitable and affordable rentals. • Provide veterans who are chronically or on the verge of homelessness with SSVF and HUDVASH assistance. • Assist government agencies with programs that reduce veteran homelessness and those that provide affordable housing solutions for veterans’ families with low-tomoderate income.

• Work and assist the Department of Veterans Affairs in developing a holistic alternative therapy program to combat the veteran suicide epidemic.

• Train real estate agents and lending professionals about the VA Home Loan Guaranty Benefit, ensuring the veterans’ home buying experience is without discrimination. • Provide closing cost assistance for veterans in need. • Donate 40+ mortgage-free homes to deserving heroes.

LEGISLATIVE ACCOMPLISHMENTS

Blue Water Vietnam Navy Act: In 2018, VAREP became aware of the Blue Water Navy Vietnam Veterans Act. The “pay for” language was constructed in such a way that the bonus entitlement (aka remainder entitlement) feature would eviscerate the VA Home Loan. Additionally, the VA Funding Fee Waiver, offered to any veteran with a VA rated disability, would have been eliminated from all but those veterans with a 100% disability. The bill passed the House with a near unanimous vote. It is currently in the Senate, ready for a vote. VAREP fiercely advocated for Senate members to halt the passage of the bill and urged corrections to its “pay for” language. VAREP literally wrote the language that rescued “bonus entitlement” and convinced Congress to remove the VA Funding Fee removing language. VAREP also backed and advocated for enhanced access to the VA Funding Fee to Purple Heart recipients who are still serving on active duty.

Servicemember Financial Literacy: VAREP successfully led the way during the 115th Congress by working with then- Congresswoman Kyrsten Sinema. The collaboration was forged to add an amendment to H.R. 5515 / S.1519 National Defense Authorization Act (NDAA) for fiscal years 2018/2019. Sinema, who is now a United States Senator, instructed the DoD to ensure members obtain sufficient financial literacy to effectively leverage conferred benefits and opportunities for employment, education, vocational training, and entrepreneurship.

VA Home Loan Churning: Along with Senators Elizabeth Warren and Thom Tillis, VAREP led the legislative efforts to put an end to CHURNING. Churning took advantage of a loophole in the VA Refinance Program (IRRRL). It allowed predatory lenders to reap tens of thousands of dollars from veteran homeowners who utilized VA Home Loans. S.2155 Economic Growth, Regulatory Relief, and Consumer Protection Act of 2019 passed in both houses and became Public Law No: 115-174 (05/24/2018), terminating this unconscionable practice.

2021 VAREP POLICY CONFERENCE

VA Home Loan Solvency: In early 2019, VAREP alerted Senator Sinema of an inadvertent error. The mistake that damaged the VA Home Loan Program had occurred when the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2019 (S.2155) was signed into law the previous year. Over 3,000 VA home loans that had already closed escrow were made ineligible to sell to Ginny Mae. If the error went uncorrected, lenders could have become resistant to working with any veteran who wanted a VA home loan. VAREP teamed up with Senator Sinema to introduce S.1749 Protecting Affordable Mortgages for Veterans Act of 2019 and correct the misstep. The bill was passed without amendment by Voice Vote and became Public Law No: 116-33 (7/25/2019).

URLA (Universal Residential Loan Application): In 2015, VAREP began advocating for a major change to the URLA, wherein the form would include a specific military question. It asked, “Did you (or your deceased spouse) ever serve, or are you currently serving, in the United States Armed Forces?” Working once again with then-Congresswoman Kyrsten Sinema, Congressman Raul Grijalva, and dozens of other members of Congress VAREP convinced then-FHFA Director Mel Watt to champion the improvement to the URLA. The URLA form was changed and the military question was added.

Extending VA Funding Fee 1st Use Authorization to a 2nd Purchase Due to National Disasters: In 2019, VAREP teamed up with Senator Mazie Hirono on S.4656 Veteran Home Loan Disaster Recovery Act of 2020. It was to ensure that, “if a veteran has obtained a VA loan and the dwelling was substantially damaged or destroyed by a major disaster, declared by the President of the United States, the VA will treat the VA loan, used to replace or substantially repair the home, that new loan will be treated as initial loan, thus there would be no need for the veteran to pay the VA Funding Fee subsequent use fee structure.” At the end of the 116th Congress the Veteran Home Loan Disaster Recovery Act of 2020 was added as an amendment to H.R. 7105 Veterans Health Care and Benefits Improvement Act of 2020 in Section 2102. It was renamed, “Reducing Loan Fees for Certain Veterans Affected by Major Disasters.” Then on January 5, 2021 it became Public Law No: 116-315.

CONCLUSION

A Congressional Charter would: • Allow the VA to recognize the VA Home Loan Guaranty Benefit on the same level as the disability, compensation, pension and education benefits. • Allow the VA and VAREP to create a national partnership that provides veterans with housing and financial literacy services. • Allow VAREP to continue as the “boots on the ground” resource reporting to Congress on housing, financial literacy, mortgage lending progress and other issues. • Allow VAREP to continue working with both chambers on key housing and financial issues.

In nearly every example of operational and legislative successes, ONLY VAREP understood the need for fixing these ubiquitous problems. As such, we implore both branches of government - The United States Congress and Senate - to grant VAREP a Congressional Charter that allows us to continue providing our services to veterans at the VA facilities. VAREP is the essential voice that has been missing on the “Veteran Housing and Economic Benefits Advocacy Battlefield.”

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2021 VAREP POLICY CONFERENCE

E V A S

E TH

SAN DIEGO, CALIFORNIA GRAND HYATT MANCHESTER

LIVE IN-PERSON OCTOBER 10TH - 12TH 2021

The 2021 VAREP National Convention will be bringing back it’s LIVE INPERSON event this October 2021. The National Convention will educate, develop, and empower current and future leaders within the VAREP organization. The National Convention equips VAREP leaders with the necessary tools to serve the military and veteran housing needs.

SEE YOU SOON... IN PERSON

2021 VAREP POLICY CONFERENCE

house a vet mortgage free home donation In Partnership with Bank of America of peace. He is a proud father of 5, including the celebration of his newborn baby girl. His wife Kristal has been a rock for him and they are overjoyed to be receiving a home for their family, a place to grow roots and create traditions.] Looking back he stats: “the best part of being a Marine is the comradery and brotherhood that lasts a lifetime, you simple can’t find that anywhere else.” “Our support of veterans, service members and their U.S. Marine Corps, Ronald Pugh Former Marine Corps Corporal Ronald Pugh recently received the keys to his newly renovated home in Chatsworth, GA. The home is being donated mortgage-free by the Veterans Association of Real Estate Professionals (VAREP) in partnership with Bank of America.

office when he was just 7 years old and it was love at first He knew then that

he wanted to be a Marine when he grew up. Once he joined CPL Pugh did his initial training in Parris Island, SC. During his desert training the Irag war was declared and after his Christomas Holiday leave he set sail overseas to Kuwait. He recalls “it being very hectic at first; patriot missiles going off, warning sirens and artillery and tanks all around, everywhere you looked”. This is where he fought many battles including the battle of An Nasiriyah. He then finished his last year in Okinawa, Japan.

After his separation from the Marine Corps, CPL

Pugh, was diagnosed with PTSD. This caused him great heart ache and difficulties over the years. He is now receiving the help he needs to be able to move forward and feels a sense 33

remains committed to hiring and serving military personnel who contribute so much to our company, our communities and our country,” said Tony Shinn, Oklahoma City Market President for Bank of America. “It’s an honor to welcome Sergeant Remley and his family home to Cushing thanks to our partnership with VAREP.”

Corporal Pugh visited his first Marine recruiting sight.

families is a huge part of who we are. Bank of America

In 2020, Bank of America celebrated 100 years of service to the military, a tradition that started in July 1920 when the company began providing financial services and products for service members and their families at the Fort Sam Houston base in Texas. Bank of America currently operates overseas military banking facilities in 10 countries, including 62 financial centers and 274 ATMs.

The

company also recently surpassed its five-year goal to hire 10,000 veterans, National Guard and reservists. This hiring goal was set to address the unique challenges military personnel face in finding employment after service. Bank of America remains committed to attracting, developing, and retaining military talent.

Stop renting. Start owning. For many families, buying that first home is generations in the making. The Bank of America Community Homeownership Commitment™ can help you make it happen. You may get: Down payment 1 help up to

$10,000 or 3% of purchase price

Whichever is less. Product availability and income restrictions apply.2

Closing cost 1 help up to

$7,500 a lender credit

Down payments as low as

3% 4 Down

Income limits apply.

Learn more at bankofamerica.com/homeowner 1. Down Payment program and America’s Home Grant program: Qualified borrowers must meet eligibility requirements such as being owner-occupants and purchasing a home within a certain geographical area. Maximum income and loan amount limits apply. Minimum combined loan-to-value must be greater than or equal to 80%. The home loan must fund with Bank of America. Bank of America may change or discontinue the Bank of America Down Payment Grant program or America’s Home Grant program or any portion of either without notice. Not available with all loan products, please ask for details. 2. Additional information about the Down Payment program: Down Payment Program is currently limited to two specific mortgage products. Program funds can be applied toward down payment only. Borrowers cannot receive program funds as cash back in excess of earnest money deposits. Down Payment Grant program may be considered taxable income, a 1099-MISC will be issued, consult with your tax advisor. May be combined with other offers. The Bank of America Down Payment Grant program may only be applied once to an eligible mortgage/property, regardless of the number of applicants. 3. Additional information about the America’s Home Grant program: The America’s Home Grant program is a lender credit. Program funds can only be used for nonrecurring closing costs including title insurance, recording fees, and in certain situations, discount points may be used to lower the interest rate. The grant cannot be applied toward down payment, prepaid items or recurring costs, such as property taxes and insurance. Borrowers cannot receive program funds as cash back. 4. Maximum income and loan amount limits apply. Fixed-rate mortgages (no cash out refinances), primary residences only. Certain property types are ineligible. Maximum loan-to-value (“LTV”) is 97%, and maximum combined LTV is 105%. For LTV >95%, any secondary financing must be from an approved Community Second Program. Homebuyer education may be required. Other restrictions apply. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Bank of America, N.A., Member FDIC. Equal Housing Lender. ©2020 Bank of America Corporation. Bank of America Community Homeownership Commitment is a trademark of Bank of America Corporation. MAP3247013 | AD-05-21-0451 | 09/2020

2021 VAREP POLICY CONFERENCE 2019

A WORD FROM G-II VARRATO, NATIONAL LEGISLATIVE COMMITTEE CHAIRMAN “To maintain the momentum from the Policy Conference, I have appointed G -II Varrato, Yeimalis Acevedo-Rasmussen, Robbie Grossman, Lynn Jabs, Nacho Castro, Rod Beck, Victoria Blass and Michael Hamilton to form VAREP’s National Legislative Committee (NLC). The NLC’s task is to do the background and heav y-lifting work necessary to move our mission and the bill forward.”

- Son Nguyen, VAREP Founder & President

G-II VARRATO NLC Chairman U.S. Air Force

YEIMALIS ACEVEDO-RASMUSSEN NLC Member Patriot

ROBBIE GROSSMAN NLC Member Patriot

LYNN JABS NLC Member Patriot

NACHO CASTRO NLC Member U.S. Army

DEX CAJIGAL NLC Member U.S. Marines

VICTORIA BLASS NLC Member Patriot

MICHAEL HAMILTON NLC Member Patriot

WHERE DO WE BEGIN? HOW ABOUT, WHAT ARE THE CHALLENGES TO BECOMING A CONGRESSIONALLY CHARTERED VSO? In the last “Roger That” we reminded you that the 117th Congress of the United States was sworn into office on January 3rd 2021. During this Congress, the VAREP NLC will work diligently to have legislation introduced in both the House and the Senate that will grant VAREP a Congressional Charter as a Veteran Service Organization or VSO. While VSOs are essentially a product of the 20th Century, in this article I am going to share with you a brief history of how Veterans Service Organizations were formed way back to the first VSO in 1879 (Navy Mutual Aid Association) up through 2009 (Military Officers Association of America). The idea of adding a 93rd Congressionally Chartered VSO is quite a challenge, inasmuch as the majority of members of the House and Senate and their staff are totally unfamiliar with the process. Most of the staffers, in all of the offices, in both the House and the Senate were either not even born yet, given the fact that it was 1997 when the Air Force Sergeants Association was Congressionally Chartered, or some of them were in their teen years, when the last VSO was

chartered in 2009. They don't know why VSO's were no longer chartered but rather simply no, “… that is the way things have been for over a decade…”. As I noted, prior to the charter for the Korean War Veterans Association in 2008 and the Military Officers Association of America in 2009, the last VSO to receive a Congressional Charter was the Air Force Sergeants Association in 1997. There are over 45,000 VSOs. Only 92 of them have the designation of being Congressionally chartered. VSOs are listed in Title 36 USC but are not agencies of the United States. The attraction of becoming a Congressionally Chartered VSO is that it tends to provide an indirect benefit to the organizations by way of recognition by the public. Over the many decades that Congressional Charters have been issued to the 92 Congressional Charters, the public began to perceive that if a VSO was designated as a Congressional Charter, the VSO must have some weight and authority backed by the full faith and confidence of the United States Government. That is totally incorrect. Nevertheless, in 1989 the House Judiciary Committee subcommittee of jurisdiction instituted a moratorium on granting new charters of all types, framed around the idea that the public’s perception was correct and injurious to the public. The chartering by Congress of organizations as VSO's is noted in Title 36 USC Subtitle II; Patriotic and National Organizations.

2019 VAREP POLICY CONFERENCE 2021 The process is divided into three categories. The first under Subtitle I: Patriotic and National Observance and Ceremonies. Under Subtitle II; Patriotic and National Organizations and under Subtitle II; Treaty Obligation Organizations. VAREP falls under Subtitle II; Patriotic and National Organizations. As I noted above there are 92 corporate entities currently that have this designation. Congressionally chartered VSOs do not receive direct appropriations from the Federal Government; they have no federal powers; their debts are not covered by the full faith and credit of the United States and they do not enjoy any form of original jurisdiction in Federal courts. In fact, up until 1992 the Department of Veterans Affairs had a rule that any VSO seeking free space and telephones in any of its facilities had to have a congressional charter. That is no longer the case. In 1965 President Lyndon Johnson vetoed a bill that would have authorized a Federal chartered status to the Youth Councils on Civil Affairs. PRESIDENT JOHNSON SAID IN HIS VETO: “For some time, I have been concerned with the question of whether we are granting Federal charters to private organizations on a case-by-case basis without the benefit of clearly established standards and criteria as to eligibility. Where the civic, patriotic, and philanthropic organizations, can and do, incorporate their activities under state law. It seems obvious that Federal charters should be granted, if at all, only on a selective basis and that they should meet some national interest standard.” In 1969 President Johnson requested that the subcommittees of both the House and the Senate Judiciary Committees jointly agree to a statement of policy known as the “Standards for Granting

of Federal Charters” . There were five minimum standards that had to be met. Any private organization petitioning Congress for the purpose of obtaining the status of a federal Corporation shall be required to demonstrate to the satisfaction of Congress, but it is an organization which is-(1) operating under a charter granted by a state or the District of Columbia and that it has so operated for a significant period of time to demonstrate its permanence and that its activities are clearly in the public interest; (2) of such unique character that chartering by the Congress as a Federal Corporation is the only appropriate form of incorporation; (3) organized and operated solely for charitable, literal, educational, scientific, patriotic, and civil improvement purposes; (4) organized and operated as a nonpartisan and nonprofit organization: and (5) organized and operated for the primary purpose of conducting activities which are of national scope and responsive to national need, which need cannot be met except upon the issuance of a federal charter. Over the following next two decades multiple controversies evolved drawing Congress into court battles over issues such as First Amendment rights in the lawsuit in the Supreme Court, Boy Scouts of America v. Dale. Subsequent to that controversy, was a lawsuit involving the American Gold Star Mothers in 2004 and subsequent to that another legal challenge with the National Education of the United States Charter. So, in 1989 Chairman of the Subcommittee on Administrative Law and Government Relations,

Barney Frank and ranking Minority Member, Craig James, announced that the subcommittee had approved a motion for a “moratorium on the granting of federal charters”. It was Congressman Frank who asserted, “When I first raised the issue, what is a federal charter? The answer was, ‘A Federal Charter is a Federal Charter is a Federal Charter... You could make up an organization for the preservation of Albert DeSalvo the Boston Strangler. We would have no way of checking into it”. It was Congressman Frank's belief that committees could be drawn into public disputes touched off by controversial activities or statements by a Title 36 Corporation or employees or members of those organizations. In the 104th Congress Congressman Frank’s committee reaffirmed the moratorium on chartering Federal VSOs. The committee went on to assert that not-for-profit organizations falsely implied to the public that a chartered organization and its activities somehow carried a Congressional, “seal of approval.” The VSO moratorium is renewed every Congress primarily by the Judiciary Committees, however even though the moratorium on VSOs has been in place since 1989 7 more Congressionally Chartered VSOs have emerged. In 1990 National Association of County Veterans Service Officers, Inc., in 1992 Military Order of the World Wars and The Retired Enlisted Association, in 1996 the Fleet Reserve Association, then in 1997 the Air Force sergeants Association, then again in 2008 the Korean War Veterans Association and in 2009 the Military Officers Association of America. Some VSOs have made it through Congress as their own line-item bill but most often they are attached to the National Defense Authorization Act. That is most likely where VAREP will find success.

VAREP’s NLC GADs are on a mission to convince Congress that VAREP should become the 93rd Congressionally Chartered VSO. We understand that Congress believes that chartering an organization can lead to mixed signals to the public. It has been argued that some members of the public believe that a chartered VSO has some material Governmental status or that a chartered VSO that becomes a Congressionally chartered VSO signifies the U.S. Government's approval of the corporation’s activities. Neither of those assumptions are correct or true. The VAREP NLC fully understands and embraces the uphill climb to discourage aversions to granting organizations, such as VAREP, Congressional VSO status. That is the mission we are on and that is the mission we will succeed at during the 117th Congress and hopefully in the year 2021. The process is well underway with House Representative Lou Correa and Senator Amy Klobuchar taking the lead on the legislation. Representative Correa hopes to have the VAREP VSO bill introduced on the floor of the House within the next couple of months. We plan on asking Senator Klobuchar to introduce her Senate Companion Bill at the same time, on the floor of the Senate. The NLC GADS are already hard at work cultivating relationships with members of Congress in both the House and the Senate in every state. The mission is to introduce the concept of VAREP becoming a Congressionally Chartered VSO and to gain a commitment from every member of Congress to endorse this effort. Stay tuned and watch this space for a progress report in the next “Roger That” briefing. Stay Safe! Stay Healthy! #IAmVAREP G-II Varrato VAREP National Legislative Committee Director 38

2021 VAREP POLICY CONFERENCE

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

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