Section 1. Short title
This Act may be cited as the VA Home Loan Affordability Act.
(a) Prohibition of requirement of third party verification of lender fees
Section 3703(a)(2)(B) of title 38, United States Code, is amended—
(1) by inserting in regulations after Secretary may prescribe; and
(2) by adding at the end the following: In prescribing such regulations regarding fees paid by a veteran borrower to lender, the Secretary may not require documentation of such fees by a third party.
(2) Minimum interest rate for adjustable rate mortgage
Section 3709(b)(3) of title 38, United States Code, is amended by striking 200 basis points and inserting 75 basis points.
(c) Expansion of guaranteed loans for condominiums
Section 3710(a)(6) of title 38, United States Code, is amended, in subsection (a)(6), by striking, if such development or project is approved by the Secretary under criteria which the Secretary shall prescribe in regulations.
(d) Maximum closing costs and seller fees for guaranteed loans
Section 3710(b) of title 38, United States Code, is amended—
(1) in paragraph (7)(C)(ii), by striking; and and inserting a semicolon;
(2) in paragraph (8), by striking the period at the end and inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
(9) the closing costs actually paid by the veteran do not exceed 1.5 percent of the amount of the loan; and
(10) the seller fees actually paid by the veteran do not exceed six percent of the outstanding balance of the loan.
(e) Regular prescription of debt-to-Income ratios
Section 3710(g)(3)(A), of title 38, United States Code, is amended by inserting, reviewed and prescribed not less than once every two years, after debt-to-income ratios.
(f) Minimum experience of an appraiser required
Section 3731(a)(1) of title 38, United States Code, is amended by striking certification of an appropriate number of years and inserting a certificate or license issued by a State.
(g) Review of appraisal minimum property requirements
Not later than 90 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall—
(1) review regulations prescribed under section 3710(b)(4) of title 38, United States Code, regarding the suitability of property; and
(2) prescribe new such regulations that the Secretary determines appropriate.
(h) Plan To modernize IT for housing loans
Not later than 180 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall submit to the Committees on Veterans Affairs of the Senate and House of Representatives the plan of the Secretary to modernize the information technology used to administer housing loans under chapter 37 of title 38, United States Code.