Affordable Homes for Veterans Act of 2026

Chapter 37 of title 38, United States Code, is amended by inserting after section 3710 the following new section:

The servicer of a loan guaranteed under this chapter shall process and render a decision on a complete application for the assumption of such a loan within 45 calendar days of receipt of such complete application. The requirement under this subsection shall apply regardless of whether the servicer—

(1) is authorized to approve loan assumptions independently; or

(2) is required to submit an application for a loan assumption to a regional loan center of the Department for approval.

In this section, the term complete application means an application that includes all documents and information required by Department regulations for review and approval.

The table of sections in chapter 37 of title 38, United States Code, is amended by inserting after the item relating to section 3710 the following new item:

(1) the 45-calendar-day processing timeline established in section 3710A of title 38, United States Code, as inserted by section 3, is a statutory requirement;

(2) servicers may not threaten, suggest, or imply to individuals who are potential assumers of such loans that the processing timeline will exceed 45 calendar days as a reason to discourage assumptions; and

(3) any communication made by servicers regarding processing timelines must be consistent with the statutory requirement.

Not later than 90 days after the date of the enactment of this Act, the Inspector General of the Department of Veterans Affairs, in consultation with the Comptroller General of the United States, shall conduct an assessment of each of the following:

(1) During the three-year period preceding the date on which the assessment is commenced, the extent to which servicers of loans guaranteed under chapter 37 of title 38, United States Code, processed applications for assumptions of loans guaranteed under chapter 37 of title 38, United States Code, within the 45-calendar-day timeline required by section 3710A of title 38, United States Code, as added by section 3.

(2) The average processing time for applications for assumption of loans guaranteed under such chapter that are submitted to servicers of such loans and regional loan centers of the Department, disaggregated by servicer and by region.

(3) The frequency and nature of communications by servicers of such loans to individuals who are potential assumers of such loans regarding processing timelines, including instances in which servicers suggested or implied that processing would take longer than 45 calendar days.

(4) The denial rates for applications to assume such loans, compared to the rates of approval and withdrawal of such applications, including an assessment of whether extended timelines may be discouraging applicants.

(5) The comparative denial rates between applications to assume such loans and applications for new loans guaranteed under such chapter, including an assessment of whether assumptions are being subjected to higher or more stringent approval standards than new loans.

(6) Any evidence of discrimination or disparate treatment of individuals who submit applications to assume such loans compared to individuals who submit applications for new loans, including differences in underwriting standards, required documentation, creditworthiness thresholds, or timelines based on borrower characteristics.

(7) Any barriers within the operations, staffing, or systems of servicers of such loans that prevent timely processing of applications to assume such loans.

(8) The adequacy of Department oversight of the compliance of servicers of such loans with assumption processing requirements.

Not later than 18 months after the date of the enactment of this Act, the Inspector General of the Department of Veterans Affairs shall submit to Congress a report containing—

(1) the findings of the assessment required by subsection (a);

(2) an identification of any servicers of loans guaranteed under chapter 37 of title 38, United States Code, that fail to meet the 45-calendar-day requirement under section 3710A of title 38, United States Code, as added by section 3, on a consistent basis;

(3) an analysis of denial rates for applications to assume such loans compared to denial rates for applications for new loans guaranteed under such chapter, including an identification of any disparities;

(4) an analysis of whether assumptions of such loans are subject to higher or more stringent underwriting standards, creditworthiness thresholds, or documentation requirements than new loans;

(5) findings regarding potential discrimination or disparate treatment of individuals who submit applications to assume such loans;

(6) recommendations for enforcement mechanisms to ensure the compliance of servicers of such loans with applicable requirements; and

(7) an identification of any additional legislative or regulatory changes needed to improve the processing of applications to assume such loans and ensure equitable treatment compared to applications for new loans.

The Inspector General shall make publicly accessible the anonymized data collected for purposes of conducting the assessment required under subsection (a).