Section 1 Short title
This Act may be cited as the “Veterans Assistance for Loan Origination Relief Act” or the “VALOR Act”.
Veterans Assistance for Loan Origination Relief Act
A BILL
To amend title 38, United States Code, to waive the fee for a housing loan guaranteed by the Secretary of Veterans Affairs for certain veterans with a service-connected disability who applied for such loan before receiving a disability rating from the Secretary.
Sec. 2 Waiver of housing loan fee for certain veterans with a service-connected disability who applied for such loan before receiving a disability rating
Waiver— Subsection (c)(2)(A) of section 3729 of title 38, United States Code, is amended by striking “rating” and inserting “examination or review, as defined by the Secretary,”.
Refund to veteran— The Secretary of Veterans Affairs shall refund any fee collected under such section before the date of the enactment of this Act from a veteran—
who requests such a refund; and
whom the Secretary determines, pursuant to evidence submitted by the veteran, would have been eligible for a waiver of such fee pursuant to the amendment made by subsection (a) if the veteran obtained the housing loan after such date.
Funding fee refund— The Secretary may pay to a lender, loan servicer, or loan holder the amount of a fee refunded under subsection (b) if the loan for which such fee was collected was active on the date on which the refund was provided. The Secretary shall require that any amount paid under this subsection shall be applied to the loan as a principal balance reduction.