A piece of legislation introduced in the Senate in May 2022 was intended to streamline the appraisal process for Veteran Affairs’ (VA) loans and, in some cases, waive appraisals altogether.

Introduced by Senator Dan Sullivan of Alaska and Congressman Mike Bost of Illinois, the legislation would allow for a digital appraisal process, addressing long-standing complaints that the Department of Veteran Affairs’ current appraisal requirements are lengthy and expensive, which makes it difficult for VA borrowers to compete in a hot housing market.

“VA home loans have given millions of veterans and their families the opportunity to purchase a home,” said Bost at the time. “Yet, on average, veterans wait longer and pay more during the closing process due to VA’s out-of-date appraisal process. That’s why I am introducing the ‘Improving Access to VA Home Loan Act of 2022’ today. This bill will make sure that veterans are not unfairly disadvantaged during the home buying process and allow for a modern, digital appraisal process, which will get them into their new home faster.”

The legislation, which would allow desktop appraisals instead of traditional in-person ones, modernizes the VA’s present appraisal process and aligns it with those of the Federal Housing Administration and government-sponsored housing enterprises Fannie Mae and Freddie Mac.

Last year, the Federal Housing Finance Agency adopted hybrid appraisals as a permanent fixture. Fannie Mae and Freddie Mac also allow appraisals to be conducted remotely for purchase loans, using public records such as listings and tax appraisals.
 
The Mortgage Bankers Association supports the pending legislation. Some home lenders are also urging Congress to ensure that funding fees are set at levels commensurate with the risks associated with VA-guaranteed home lending, as past funding fee increases may have been misaligned with the actual risk profile of veteran borrowers.

As of 2023, no further developments on this bill have been provided, however attention should continue to be given to facilitating homeownership for veterans.

Source: S.4208 - 117th Congress (2021-2022): Improving Access to the VA Home Loan Act of 2022 | Congress.gov | Library of Congress

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About Bobbi Pronin
Bobbi Pronin is an award-winning writer based in Orange County, Calif. A former news editor with more than 30 years of experience in journalism and corporate communications, she has specialized in real estate topics for over a decade.

Bobbi is not an employee of Anywhere Integrated Services or affiliated with its title companies.