[House Hearing, 118 Congress]
[From the U.S. Government Publishing Office]
LEGISLATIVE HEARING ON.
H.R. 226, H.R. 7543, H.R. 7896, H.R. 7920,H.R.
8529, H.R. 8661, H.R. 8646, H.R. 8647, H.R. 8514,
H.R. 8560, H.R. 8627, AND H.R. 8607
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HEARING
BEFORE THE
SUBCOMMITTEE ON ECONOMIC OPPORTUNITY
OF THE
COMMITTEE ON VETERANS' AFFAIRS
U.S. HOUSE OF REPRESENTATIVES
ONE HUNDRED EIGHTEENTH CONGRESS
SECOND SESSION
__________
WEDNESDAY, JUNE 12, 2024
__________
Serial No. 118-68
__________
Printed for the use of the Committee on Veterans' Affairs
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Available via http://govinfo.gov
__________
U.S. GOVERNMENT PUBLISHING OFFICE
56-198 WASHINGTON : 2025
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COMMITTEE ON VETERANS' AFFAIRS
MIKE BOST, Illinois, Chairman
AUMUA AMATA COLEMAN RADEWAGEN, MARK TAKANO, California, Ranking
American Samoa, Vice-Chairwoman Member
JACK BERGMAN, Michigan JULIA BROWNLEY, California
NANCY MACE, South Carolina MIKE LEVIN, California
MATTHEW M. ROSENDALE, SR., Montana CHRIS PAPPAS, New Hampshire
MARIANNETTE MILLER-MEEKS, Iowa FRANK J. MRVAN, Indiana
GREGORY F. MURPHY, North Carolina SHEILA CHERFILUS-MCCORMICK,
C. SCOTT FRANKLIN, Florida Florida
DERRICK VAN ORDEN, Wisconsin CHRISTOPHER R. DELUZIO,
MORGAN LUTTRELL, Texas Pennsylvania
JUAN CISCOMANI, Arizona MORGAN MCGARVEY, Kentucky
ELIJAH CRANE, Arizona DELIA C. RAMIREZ, Illinois
KEITH SELF, Texas GREG LANDSMAN, Ohio
JENNIFER A. KIGGANS, Virginia NIKKI BUDZINSKI, Illinois
Jon Clark, Staff Director
Matt Reel, Democratic Staff Director
SUBCOMMITTEE ON ECONOMIC OPPORTUNITY
DERRICK VAN ORDEN, Wisconsin, Chairman
NANCY MACE, South Carolina MIKE LEVIN, California Ranking
C. SCOTT FRANKLIN, Florida Member
JUAN CISCOMANI, Arizona FRANK J. MRVAN, Indiana
ELIJAH CRANE, Arizona MORGAN MCGARVEY, Kentucky
DELIA C. RAMIREZ, Illinois
Pursuant to clause 2(e)(4) of Rule XI of the Rules of the House, public
hearing records of the Committee on Veterans' Affairs are also
published in electronic form. The printed hearing record remains the
official version. Because electronic submissions are used to prepare
both printed and electronic versions of the hearing record, the process
of converting between various electronic formats may introduce
unintentional errors or omissions. Such occurrences are inherent in the
current publication process and should diminish as the process is
further refined.
C O N T E N T S
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WEDNESDAY, JUNE 12, 2024
Page
OPENING STATEMENTS
The Honorable Derrick Van Orden, Chairman........................ 1
The Honorable Mike Levin, Ranking Member......................... 2
WITNESSES
Panel I
Mr. John Bell, Executive Director, Loan Guaranty Service, U.S.
Department of Veterans Affairs................................. 4
Accompanied by:
Mr. Joseph Garcia, Executive Director, Education Service,
U.S. Department of Veterans Affairs
Mr. James Ruhlman, Deputy Director, Education Service, U.S.
Department of Veterans Affairs
Ms. Jill Albanese, Director, Clinical Operations/Senior
Advisor, Veterans Health Administration, U.S. Department
of Veterans Affairs
Panel II
Dr. Jan Del Signore, President, National Association of Veterans
Program Administrators......................................... 13
Mr. Kevin O'Neil, Senior Employment and Education Policy
Associate, The American Legion................................. 14
Ms. Karen Kreutziger Powell, Chief Executive Officer of Flat Home
Loans, Mortgage Bankers Association............................ 16
Mr. Marquis Barefield, Assistant National Legislative Director,
Disabled American Veterans..................................... 18
Mr. Richard Brookshire, Chief Executive Officer, Black Veterans
Project........................................................ 19
APPENDIX
Prepared Statements Of Witnesses
Mr. John Bell Prepared Statement................................. 31
Dr. Jan Del Signore Prepared Statement........................... 49
Mr. Kevin O'Neil Prepared Statement.............................. 55
Ms. Karen Kreutziger Powell Prepared Statement................... 67
Mr. Marquis Barefield Prepared Statement......................... 70
Mr. Richard Brookshire Prepared Statement........................ 74
Statements For The Record
National Consumer Law Center Prepared Statement.................. 77
Navy Federal Credit Union Prepared Statement..................... 78
Housing Policy Council Prepared Statement........................ 79
APPENDIX--continued
The Military Coalition Prepared Statement........................ 87
National Association of Realtors Prepared Statement.............. 89
Student Veterans of America Prepared Statement................... 91
Veterans Education Success Prepared Statement.................... 96
Veterans of Foreign Wars of the United States Prepared Statement. 100
National Guard Association of the United States Prepared
Statement...................................................... 102
Reserve Organization of America Prepared Statement............... 103
National Alliance to End Homelessness Prepared Statement......... 110
Enlisted Association of the National Guard of the United States
Prepared Statement............................................. 111
LEGISLATIVE HEARING ON
H.R. 226, H.R. 7543, H.R. 7896, H.R. 7920, H.R. 8529, H.R. 8661, H.R.
8646, H.R. 8647, H.R. 8514, H.R. 8560, H.R. 8627, AND H.R. 8607
----------
WEDNESDAY, JUNE 12, 2024
Subcommittee on Economic Opportunity,
Committee on Veterans' Affairs,
U.S. House of Representatives,
Washington, DC.
The subcommittee met, pursuant to notice, at 2:06 p.m., in
room 360, Cannon House Office Building, Hon. Derrick Van Orden
(chairman of the subcommittee) presiding.
Present: Representatives Van Orden, Crane, Levin, and
Ramirez.
Also present: Representatives Vasquez, and Davis.
OPENING STATEMENT OF DERRICK VAN ORDEN, CHAIRMAN
Mr. Van Orden. Good afternoon, everybody. Sorry about that,
Kay. Surprise her. Surprise. The subcommittee will come to
order. I welcome the witnesses and subcommittee members to
today's hearing, and everyone who has participated in the
subcommittee understands this is not a bipartisan committee,
this is a nonpartisan committee and will continue to operate in
that vein.
We have got 12 important legislative proposals to consider
today. It is--oh, sorry. Please be seated. Yes, sorry about
that. I got all excited about legislation. I actually do. I am
a much bigger nerd than I thought I was. It is important to
note that not all of the proposals will move forward in today's
process, are in the process, and we hold legislative hearings
to learn from the U.S. Department of Veterans Affairs (VA) and
other groups about their views on the bills and ensure members
are making informed decisions and when we do or do not--when we
do or do not mark them up. We value the insight provided by
these stakeholders and agencies as an essential part of this
process. A number of these proposals seek to improve education
programs for America's veterans and ensure that the GI Bill
dollars are being used responsibly.
I specifically want to highlight three of my bills that are
on today's agenda. My--my first bill would modernize the
requirement for VetSuccess on Campus (VSOC) officers and allow
them to have a minimum of a bachelor's degree in a relevant
field of study instead of a master's degree. This change will
allow our VSOCs to service more student veterans on campus and
possibly allow for services to be provided to nearby student
veterans on other campuses. Other bills that I have introduced
would allow individuals participating in the on-the-job
training or apprenticeship to receive an increased amount of
educational assistance paid during the--during months 6 through
12 of the apprenticeship from 80 to 90 percent. This is a
logical way to promote nontraditional ways for veterans to
explore career opportunities.
My last bill would establish a partial claim program that
would bring the VA Home Loan Program on par with other programs
such as Federal Housing Loan (FHA), Fannie Mae, and Freddie
Mac. This partial claim authority would be in step--would be a
step in the loss mitigation process before the Veterans Affairs
Servicing Purchase (VASP) program, which I have deep seated
concerns about.
In the current high interest environment that we are living
in, created by some terrible economic policies, my bill would
allow a veteran who is behind on their mortgage to get a loan
from the Federal Government--the Federal Government without
having to enter into loan modification that would make their
mortgage payments too costly to afford. The legislation would
allow VA to provide assistance without purchasing the entire
property, which is a key difference from the proposed vast
expansion.
Many of you have heard previously me express my frustration
with the idea of the VA taking responsibility for as many as
60,000 mortgages that would put the American taxpayers on the
hook if they are foreclosed to the tune of $16 billion, which
could potentially destroy the second best program that has been
created under the Veterans' Administration, and that is the VA
Home Loan Guarantee, the first one, of course, being the GI
Bill.
My bill would allow VA to provide limited assistance and
include mechanisms to encourage repayment as soon as the
veterans are able. I do look forward to working with the
minority and my friends in the Senate to see if we can find a
better way to help these veterans without destroying the VA
Home Loan Program.
At this hearing, we are also going to discuss legislation
to allow National Guard and Reservists who are activated while
in school to receive a grade instead of an incomplete, provided
they can reach an agreement with their school and professors.
Additional bills that will be considered would address
education, home loan, and homelessness, which is my ranking
member's number one legislative priority. I have reservations
about some of the proposals on the agenda today, and the
witnesses testimony and questions from members will hopefully
address some of these issues so that we can make informed
decisions about whether or not to move these forward in the
legislative process. We look forward to hearing from the
members who have been introduced, who have introduced these
proposals, as well as our witnesses on how we can continue to
improve these bills and better the lives of our veterans.
I now yield to my friend, Ranking Member Levin from the
great State of California, for 5 minutes.
OPENING STATEMENT OF MIKE LEVIN, RANKING MEMBER
Mr. Levin. Thank you to my friend, Chairman Van Orden, for
holding this legislative hearing on 12 pieces of legislation,
and also congratulations on a successful jump at Normandy
commemorating the 80th anniversary of D-Day. I want to start
out by highlighting a few of the bills on the agenda that will
ensure equity and benefits for service members, veterans,
spouses, and dependents, expand much needed benefits for
homeless veterans, and increase the post-9/11 GI Bill books and
supply stipend.
First, I would like to thank Ranking Member Takano for his
partnership on the Guard and Reserve GI Bill Parity Act of
2024. This important piece of legislation would ensure National
Guard and Reservist service members receive post-91/1 GI Bill
eligibility for every day spent in uniform. This means that
every day conducting operations, training, attending military
schools, conducting weekend drill and annual training
requirements, or responding to National disasters would count
toward earning post-9/11 GI Bill educational benefits.
Additionally, homelessness continues to be a top priority
of mine, and there is not a one size fits all solution. We must
take a comprehensive approach to address the underlying needs
of each individual veteran until every veteran has a place to
call home. Ranking Member Takano, Representative Waters, I
partnered on the End Veteran Homelessness Act that will allow
thousands more veterans to be served in the U.S. Department of
Housing and Urban Development (HUD) VA Supportive Housing
program. This crucial piece of legislation will drastically
reduce the number of homeless veterans and increase the
utilization of U.S. Department of Housing and Urban
Development-Veterans Affairs Supportive Housing (HUD-VASH)
vouchers.
Next, Representative Clyburn's VA Housing Loan Forever Act
will address historic racial inequities faced by veterans. This
significant piece of legislation would grant eligibility to the
VA Home Loan Program for military family members of World War
II, Korean, and Vietnam War veterans who are promised benefits
based on their service but unable to actually use these
benefits due to redlining and discriminatory practices. We have
a moral obligation to make this right, and this will have a
huge impact on this generation and subsequent generations for
home ownership.
Last, Representative Vasquez's bill would increase the
books and supply stipend that veterans receive each academic
year. This stipend has not been increased since the post-9/11
GI Bill benefits were enacted in 2008.
Many veterans cannot stretch the yearly books and supply
stipend to cover all their needs. I have heard this frequently,
and they often end up paying out of pocket to ensure they have
everything they need. This bill would help to ensure that no
longer happens and that our student veterans have the books,
supplies, and equipment they need to be successful.
Moving on, we are considering the VA Home Loan Reform Act.
I was surprised to see this legislation on the VA Home Loan
Program instead of Representative Deluzio and Senator Tester's
bill H.R 7898, the Veterans Housing Stability Act of 2024, that
was introduced in April of this year. I want to be clear. I
support the intent of providing VA with additional tools to
help veterans avoid foreclosure. However, Representative
Deluzio's bill is much more comprehensive. It would provide
authority for the VA to request moratoriums on foreclosures in
the event of a National emergency and establish a partial claim
program for up to 30 percent of the unpaid principal. I am
concerned that the bill on the agenda is meant to replace the
VASP portion of the loss mitigation waterfall, something I
cannot support. We should be adding to VA's toolbox, not taking
tools away.
Finally, I am pleased we are considering a bill that
focuses on allowing more post-secondary vocational institutions
to offer hybrid learning. However, I do have some concerns
around the drafting of the bill to ensure we are not opening up
the aperture for bad actors to take advantage of veterans GI
Bill benefits. As I have said before, the subcommittee has a
treasure trove of bills that are ready for consideration. I
would welcome more legislative hearings this year and I stand
ready to work with the chairman on his priorities.
Also, I look forward to our upcoming events, such as the
Subcommittee Markup and the Oversight Hearing on homelessness
programs later this month. Chairman Van Orden and I share this
as a top priority. We still have so much to accomplish. The
calendar keeps getting shorter. With that, Mr. chairman, I
yield back.
Mr. Van Orden. Thank you, Ranking Member Levin. I will now
introduce the witness panel. Our first witness is Mr. John
Bell, the executive director of Loan Guaranty Services at the
Department of Veterans Affairs. Mr. Bell is accompanied by Mr.
Joe Garcia, executive director of education services; Mr. James
Ruhlman, deputy director of education services; and Ms. Jill
Albanese, director of clinical operations.
I ask the witnesses of the first panel to please stand and
raise your right hand.
Do you solemnly swear that the testimony you are about to
provide is the truth, the whole truth and nothing but the
truth? Thank you.
Let the record reflect that the witnesses have answered in
the affirmative.
[Witnesses sworn.]
Mr. Van Orden. I asked the witnesses today to have your
seats, please. You guys know how this works. I do not ask you
to respect the 5-minute rule. You are going to do it, or I will
shut the microphone off. I hold myself to the same standard.
Mr. Bell, you are now recognized for 5 minutes to deliver your
testimony on behalf of the Department of Veterans' Affairs.
STATEMENT OF JOHN BELL
Mr. Bell. Thank you, Chairman Van Orden, Ranking Member
Levin, and members of the subcommittee. Thank you for inviting
us here today to discuss pending legislation. Joining me today
are Joe Garcia, Executive Director, and James Ruhlman, Deputy
Director for Program Management, both from education service at
the Veterans' Benefits Administration, and Jill Albanese,
Director of Clinical Operations and Senior Advisor to the
Executive Director for the VA Homeless Programs Office at the
Veterans Health Administration.
While VA's views on all of the bills are detailed in my
written testimony, including areas of concern and support, I
would like to highlight several bills in my opening remarks.
First, VA highly supports the unnumbered bill that would
authorize an annual increase of the amount payable for books
and supplies. The current amount has remained unchanged for 15
years, and with the cost of books increasing each year, we
believe that books and supplies stipend should also increase to
lower out-of-pocket expenses for our beneficiaries. VA also
supports the unnumbered bill, which would increase the monthly
housing allowance from 80 percent to 90 percent during the
second period for beneficiaries participating in on-the-job
training and apprenticeship programs. With the cost-of-living
expenses steadily rising, this increase to the housing
allowance will ease some of the financial strain on our
veterans and allow them to focus more on gaining the skills
needed to acquire meaningful employment.
Regarding the Modernizing the Veterans on Campus Experience
Act of 2024, VA does not support this bill unless amended. VA
requests additional clarification on the definition of
employees authorized to provide on campus services, given the
specific educational requirements needed to provide counseling
services. We also request clarity on the bill's restriction to
provide case management services to no more than 25 individuals
at any one time, as it will limit the VSOC's counselors ability
to provide necessary outreach and walk-in services to student
veterans, especially in serving multiple campuses.
VA strongly supports efforts to end veteran homelessness,
and as such, we support the End Veteran Homelessness Act of
2024. This legislation would expand veterans' eligibility for a
HUD-VASH program and allow more veterans experiencing or at
risk of homelessness to obtain permanent housing. Regarding the
Housing Loan Forever Act, VA supports this bill. If amended, we
believe VA's proposed amendments to limit a legatee's benefit
to a one-time purchase or construction loan for a first-time
homebuyer will not jeopardize the objectives of the bill and
will still make a meaningful difference for the families of
veterans who served prior to 1978 and did not use their earned
VA Home Loan benefit.
Finally, VA appreciates the subcommittee's continued
support to provide VA with additional flexibilities to help
veterans experiencing financial difficulties retain their
homes, and as such, we support Section 2 of the VA Home Loan
Program Reform Act.
However, we do not support the partial claim program
outlined in Section 3 of the bill due to concerns that it would
compromise veterans long-term financial standing and pose
significant implementation challenges given the short-lived
nature of the program. VA also does not support Section 4 of
the bill because we believe that VA has, in announcing
yesterday our strategy to address the changing real estate
marketplace, VA announced a temporary policy to allow veterans
to pay buyer broker fees when purchasing a home using their
earned VA Home Loan benefit. We also noted that we will propose
a permanent policy through rulemaking when full impacts of the
class action lawsuit and the National Association of Realtors
rule changes are fully understood.
Mr. Chairman, this concludes my statement. We appreciate
the congressional intent and welcome the opportunity to work
closely with Congress on all of the bills on today's agenda. My
colleagues and I are prepared to respond to any questions you
or other members of the subcommittee may have.
[The Prepared Statement Of John Bell Appears In The
Appendix]
Mr. Van Orden. Thank you, Mr. Bell. I am now going to
recognize Ranking Member Levin for 5 minutes.
Mr. Levin. Thank you. Thank you, Mr. Chairman. Ms.
Albanese, thank you for your testimony in support of the End
Veteran Homelessness Act of 2024. A bill I am proud to co-lead
with Ranking Members Takano and Waters. This bill will
modernize the HUD-VASH program by expanding eligibility and
making it more flexible. How will the expansion of eligibility
for HUD-VASH and other authorities in this bill close the gap
between unused vouchers and the veterans who are still
experiencing homelessness?
Ms. Albanese. Thank you very much for that question,
Ranking Member Levin. We really do appreciate this very much.
To answer your question, we know that there are many veterans.
In fact, we know that there are thousands of veterans out there
who are homeless who could benefit from having a HUD-VASH
voucher. Right now, they are not eligible for that HUD-VASH
voucher. By expanding the pool of veterans that can receive
these vouchers, we can get those veterans off the streets now
and permanently. What we know about HUD-VASH is that veterans
do not return to homelessness when they have a permanent
subsidy like HUD-VASH.
This really, truly would end someone's homelessness. I
heard recently that there was a veteran who was living in his
car, he had a full-time job, was working every day, and
therefore was deemed not needing case management. That
veteran's not eligible for a HUD-VASH voucher, even though
there were unused vouchers available at that local medical
center. That veteran, if this bill were passed, could get a
HUD-VASH voucher and again would end his homelessness
permanently.
Mr. Levin. Thank you for that. How much does VA estimate
this bill will cost?
Ms. Albanese. There--there is no cost. We----
Mr. Levin. No cost.
Ms. Albanese. Yes.
Mr. Levin. That is good.
Ms. Albanese. We will use--we are not asking for additional
vouchers. We will use the existing resources that we have to--
we are just asking for more flexibility, really, to use the
vouchers the way we want to.
Mr. Levin. Appreciate that. I want to turn to the VA Home
Loan Program. VA recently updated its policy to temporarily
allow veteran buyers using the VA Home Loan Program to
negotiate and pay their own buyer broker fee within certain
safeguards. Veterans were previously not allowed to pay their
own buyer broker fees when they bought a home through the VA
Home Loan Program. A recent legal settlement will likely lead
to a greater expectation that homebuyers pay their own buyer
broker fees, putting veterans at a disadvantage in securing a
home. Mr. Bell, I will ask this of you. When does VA plan to
make this new rule permanent?
Mr. Bell. Sir, we are working on the regulation now. We
wanted to make sure that as implementation gets closer for the
National Association of Realtors (NAR) settlement in August,
that we are able to take that feedback from the public and then
make a fully informed decision about, you know, whether or not
there are addition--whether or not there are maximum fees that
should be charged for--for veterans to make sure that they are
still able to be competitive, but also get that public feedback
on--on how we should move forward.
Mr. Levin. At a minimum, could you commit to not rescinding
this temporary prohibition and returning to former policy?
Mr. Bell. Yes, sir.
Mr. Levin. Appreciate that. Mr. Garcia, I will turn to you.
I think we agree veterans should never have to worry that their
education is being jeopardized or that they are going to be
harmed by a predatory institution. I worked on passing
legislation to ensure proper oversight measures for the VA and
to restore education benefits to defrauded veterans. The
Veterans Education and Technical Skills Opportunity Act would
change the definition of institutions of higher education for
the purposes of independent study, specifically to include
post-secondary vocational institutions. My question for you,
sir, does this bill provide adequate standards, in your view,
to qualify to participate in student financial assistance
programs that are authorized by Title IV?
Mr. Garcia. We have concerns about that because the way the
language is now, it is qualified to participate versus approved
and participate. Education Department really are the subject
matter experts when it comes to Title IV approval. The way the
bill is written now, we would then have to determine who is
qualified. Right? Again, that is not our expertise. The concern
is you bring us into it, you may have two agencies reaching
different conclusions on being qualified. Why not stick with
the language now for Title IV: approved and participate versus
determining somebody who is qualified? That would be the
concern.
Mr. Levin. Got it. I appreciate that, Mr. Garcia. One more
question for you. By expanding the definition of independent
study to allow vocational schools to provide online learning,
would the bill potentially open up the aperture for bad actors?
Mr. Garcia. Sir, with the state-approved agencies, what
they do now, we believe that that would not be an issue because
you do not want to prevent good programs from coming in. You
already have the safeguards to prevent bad programs from--from
being there. We think there is more benefit to it with existing
controls already in place with us and the State approved
agencies.
Mr. Levin. Out of time. He is about to hit that gavel, so
yield back. Thank you.
Mr. Van Orden. Thank you, Ranking Member Levin. The chair
now recognizes Ms. Ramirez for 5 minutes.
Ms. Ramirez. Thank you, Chairman, and thank you, ranking
member. I want to thank our witnesses for joining us today. I
have had an opportunity to hear from a number of you, so it is
good to see you again. It is important, as we are discussing a
number of bills that aim to improve the lives of our veterans,
including those that would help prevent homelessness, expand
opportunities to obtain housing, improve educational benefits,
and address educational equity, that we get into a little bit
more of the substance of it. I want to start with Ms. Albanese.
Did I pronounce your name correctly?
Ms. Albanese. Close enough. Thank you.
Ms. Ramirez. Okay. Thank you. I am big on that. I wanted to
ask you, we know that the flexibilities integrated in the
emergency housing voucher program have worked to reduce
homelessness and get people in stable housing during the
pandemic. My question to you is, how does the End Veteran
Homeless Act adopt some of those flexibilities and why are they
so necessary to our ability to get veterans quickly moved into
permanent housing?
Ms. Albanese. Yes, thank you so much for the question. What
we found during the pandemic that the more flexibilities we
had, the more veterans we could house. Having these additional
flexibilities with the HUD-VASH program, it is going to allow
our case managers to provide services to those veterans who
need it the most, but still provide the HUD-VASH voucher to
veterans who maybe do not need intensive case management
services. That is going to allow us to house more veterans
within the HUD-VASH program. It is also going to allow us to
move veterans who maybe were in another housing program, maybe
in another assistance program, into HUD-VASH if they need the
case management and if that is a more appropriate program.
Ms. Ramirez. Got it. Additionally, I--I think I have
mentioned this before, and actually this question can be to
you, or it could be to Mr. Bell, but I used to run a homeless
shelter. I did that--I was there for about 13 years. I know I
look very young for that, but it happened. I worked with a lot
of veterans who were experiencing homelessness, who oftentimes
the time that it took to help them move into permanent housing
really had an impact on their mental health. I wanted to ask
you, or Mr. Bell, do you think that the End Veteran Homeless
Act will also serve as another tool to really help reduce
suicide among our veterans? I mean, we know, for example, that
homeless veterans are 186 percent higher, at higher rate than
non-homeless veterans, in committing suicide. I am interested
in your take on that, Mr. Bell or Ms. Albanese.
Ms. Albanese. I will say, absolutely it will. We know that
homelessness or risk of homelessness is absolutely a high risk
for suicide. What this bill will do is it will also allow us
to--it will allow us to serve more veterans and house more
veterans. It will also allow us to serve more veterans who are
at risk of homelessness, and we know that that is a risk factor
for suicide.
Ms. Ramirez. Thank you. Then I guess one of my last
questions here. This one I want to move and shift a little bit
into the VA Home Loan Reform Act. Mr. Bell, this one is for
you. The Veteran Affairs Servicing Purchase program is set to
start at the end of May, and through VASP, as the last option,
the VA will purchase qualified veterans modified loans from
their servicer. The VA Home Loan Reform Act would create
partial claims program. My question to you is, what is the VA
doing to ensure that those veterans who were forced to take
much higher interest rates when the COVID provisions ended and
before the VASP implementation are taken care of?
Mr. Bell. Thank you for your question. This--this speaks
directly to the reason why we needed VASP. That was a unique
set of borrowers, of veterans that went through The Coronavirus
Aid, Relief, and Economic Security (CARES) Act, had
forbearances, they were at 2.5 to 3 percent interest rate, and
we needed a--a place where we could solve for the past due
payments, but we needed payment reduction. And payment
reduction is what allows VASP to work. We are hoping that as we
get over--over this one occurrence, that there are other means
in our lost mitigation waterfall that our servicers can use to
help veterans as they move, if they do go into default, that we
can help them succeed. It is just that is why it is the last
option in that waterfall. It is all about payment reduction.
They needed a time and place payment reduction when 2.5 percent
interest rate is what they have now, 2.5 to 3, and raise her at
7 percent, so----
Ms. Ramirez. Thank you. That is helpful. Thank you, Mr.
Bell. Mr. Chairman, I yield back.
Mr. Van Orden. In accordance with committee rule 5E-Echo, I
ask unanimous consent that Representative Vasquez from
California----
Mr. Vasquez. New Mexico.
Mr. Van Orden. New Mexico. Oh, my gosh. You know what? I am
going to haze myself. Immediately following this committee
hearing. From New Mexico will be permitted to participate in
today's subcommittee hearing. Hearing no objections, we will
proceed. Mr. Vasquez, from the great State of New Mexico, you
are now recognized for 5 minutes.
Mr. Vasquez. Thank you so much, Chairman Van Orden, Ranking
Member Levin. We do have a saying, do not California my New
Mexico. I am going to hold you to that, although I love the
great State of California. Distinguished members of the House
Veterans Affairs Subcommittee on the Economic Opportunity for
allowing me to testify today in support of my bill, the
Veterans Education Assistance Adjustment Act. Thank you to our
witnesses that are here as well joining us.
Our veterans have made an extraordinary sacrifice for our
country. It is our duty to support them as they transition to
civilian life and pursue their educational goals. The post-9/11
GI Bill has been a key part of our promise to veterans,
offering them the educational benefits they need to reach their
academic and their career goals post service. However, to
maintain the effectiveness of this vital program, we need to
make sure the financial support it provides keeps up with
inflation and a changing economy. Currently, the financial
support for books, supplies, and equipment provided under the
post-9/11 GI Bill stands at $1,000 per year. This amount,
unchanged over a decade, no longer reflects the rising costs of
educational materials and living expenses. My bill, the
Veterans Education Assistance Adjustment Act, would increase
the maximum stipend for books and supplies to $1,400 per year.
Additionally, it introduces a cost of living adjustment each
year, ensuring that the financial support keeps pace with
inflation and the ever increasing costs that our veterans and
their families face today.
Books and other educational supplies can be a barrier for
many students. 2008 was the last time an adjustment was made.
Alarmingly, $1,000 in 2008 is equal to $1,450 today. Veterans
should not be required to subsidize that additional cost with
their limited incomes. As the cost of materials rise, our
veterans deserve the necessary financial support to continue
their education.
My district, New Mexico's second congressional district,
with one of the highest rates of service per capita, including
the highest rates amongst Native Americans, is home to almost
50,000 veterans, and New Mexico is home to 3,700 veterans
currently enrolled in veteran educational assistant benefits. I
am honored to come before this committee today to advocate for
them and the benefits they rightfully deserve for serving our
country, as well as all the veterans enrolled in these benefits
in all of our districts across the country. It has been well
over a decade since anyone took into account the cost of
education supplies for veterans, and that is why I am here
today to advocate for my bill that will provide veterans with
the financial stability that they need to focus on their
studies as they transition to civilian life.
We need to do better to assist the heroes who served our
country. The cost of books should not be a barrier to education
and to a future career. I ask that the Chairman, Ranking
Member, and members of this subcommittee support my legislation
to increase this crucial stipend for veterans education
assistance. Thank you all for considering my bill. I yield
back, Mr. Chairman
Mr. Van Orden. Mr. Vasquez, I want to thank you for coming,
and I appreciate--I appreciate this bill. There is precedent
set already through the Vocational Rehabilitation program,
where they pay for books and supplies, and what I suggest we do
is look at how that program is administered in the cost and see
if we can apply some type of formula to this. You are right.
We--we should not have our veterans who served our country
subsidizing their own education. One--one of the primary
reasons some people do join the military is to have educational
benefits. We are in a recruiting crisis now. I really--I
appreciate you coming here tremendously.
A tradition in the subcommittee is, when we ever have
anybody come talk, is that you are given a gift, and it is
Wisconsin cheese. Matthew just left, and if he is not back in
time, if you want to take off, that will be delivered to your
office, and you are always welcome here. I appreciate your
heart for veterans, sir.
Mr. Vasquez. Chairman, you know the way to my heart. I
appreciate it.
Mr. Van Orden. All right. I now recognize, or the chair now
recognizes himself in the third person for 5 minutes.
Mr. Bell, you were here before when we were discussing
VASP, and I asked you specifically, if all things went to pot,
would the Veterans' Affairs Administration, before closing on
homes? You said, yes. Everything, this whole waterfall, does
not work out. You said that the VA would foreclose on veterans
homes. Then I had the secretary of Veterans' Affairs, Denis
McDonough, a man that I respect tremendously, and I asked him,
in what universe do you see the Veterans Affairs Administration
foreclosing on a veteran home who was incapable of paying their
mortgage after we go through this whole thing? He said, there
is not one.
The secretary of Veterans' Affairs said that there is no
way that the VA would be foreclosing on homes, and you said
that they would if all of these schemes do not work out. Who is
running the Veterans' Affairs Committee, Mr. Bell, you or
Secretary McDonough.
Mr. Bell. Sir, of course the Secretary runs the VA. What I
will say is we are doing everything that we can, including
talking about the legislation that we have presented today, as
well as the VASP program, and making sure that every veteran is
given the opportunity to not foreclose.
Mr. Van Orden. I understand, Mr. Bell. Are you telling me
that you inadvertently delivered the wrong testimony to this
committee under oath, or you did that on purpose because your
testimony and the secretary of Veterans' Affairs testimony are
incongruent?
Mr. Bell. No, sir. The answer is--is, again, I stand by
that there are certainly times, unfortunately, where we have to
foreclose on veterans.
Mr. Van Orden. Do I need to ask the secretary to revise his
testimony, or do I need to ask you to revise yours? This is an
incredibly important issue because we are talking about
destroying the second-best program that has ever been
developed.
Mr. Bell. Sir, I will take that back to the--to the
Department.
Mr. Van Orden. Okay. That is a completely unacceptable
answer, sir. You gave the exact opposite answer to the
secretary about a program that could potentially--a program
within a program that could destroy it and not allow our
veterans to purchase homes. Again, this speaks to the fact that
I do not think that this VASP program has been thought out very
well. Our second panel, we are going to be talking about the VA
Housing Loan Forever Act of 2024, right?
Mr. Bell. Yes, sir.
Mr. Van Orden. How many folks would be eligible for this?
The expansion of the VA Home Loan Program.
Mr. Bell. It is an unknown, sir, and that is one of the
things that we need to work through with the--with the bill, is
to understand exactly what veterans are eligible.
Mr. Van Orden. Okay, I read your testimony. It is great. I
just have a couple questions here.
Mr. Bell. Yes, sir.
Mr. Van Orden. Are you telling me, the Veterans' Affairs,
that the VA is willing to foreclose on the home of a World War
II veterans granddaughter who is given these benefits through
an expansion of the program?
Mr. Bell. Again, sir, there is every--we expend every
opportunity within VA----
Mr. Van Orden. I get it.
Mr. Bell [continuing]. with our servicers to, you know, to
try not to foreclose on any veterans. What I am before you
today to speak about is for our continued support in trying to
solve an issue where we do not----
Mr. Van Orden. Mr. Bell, I understand your intent
explicitly. I also understand the fact that you have decided to
extend this moratorium until December. Is that correct?
Mr. Bell. Yes, sir.
Mr. Van Orden. All right. If you guys, if your ship is
watertight and everything is good to go, and you are going to
launch it out to everybody, like you told me you were prepared
to do so before, why would you have to extend anything? Why
cannot you push go?
Mr. Bell. Sir, there is one thing for us to be able to take
in or to establish the program, that happened on May 31st,
which was what was promised. Whether or not a servicer's
technical is--is ready from a technical standpoint to transfer
those loans to us, that is why we needed the additional time,
because we do not want to leave any veteran behind that we can
help.
Mr. Van Orden. Mr. Bell, no one wants to leave a veteran
behind, but I am afraid you are going to destroy something that
is the second-best program that has ever been created by the
VA, because you have not thought this program through. I am out
of time.
Before I dismiss this panel, I feel compelled again to
express my deepest reservation about what the Veterans' Affairs
Committee is potentially doing. I mean, if we look at these
things, the application of this VASP, their implementation of
this and this $16 billion that we are signing up for, and now
we are talking about potentially expanding VA Loan Home
Guarantees to an unknown number of people--which you
articulated very well, that your concerns--I just I am
unwilling to allow that to take place on my watch. No one wants
a homeless veteran. It is Ranking Member Levin's priority. It
is my priority.
If we do this and we destroy the program in its entirety,
trying to save it, the amount of homeless veterans we are going
to have is going to be exponentially more. The road to hell is
paved with good intentions, and I feel like we are taking that
off ramp with your VASP program, and I just want that noted
again for the record. I am not impugning your reputation, sir,
or saying that your heart is not in the right place. Any one of
you. I understand that. I just, we are trying to get to the
same place, but the route you are choosing to take is going
to--is going to destroy something that is--that is good.
I do need to note that, Mr.--the written statement, Mr.
Bell, will be entered into the record.
Thank you very much for coming, everybody. I appreciate it
greatly. You are excused, and I hope that you stick around for
the second panel.
Can we empanel the second panel, please?
The Clerk. Here they come.
Mr. Van Orden. Oh, wow, look at that.
The Clerk. Poof. There you go.
Mr. Van Orden. We are all sitting here staring at each
other and wondering who is.
On our second panel, we are going to wind up--if you just
stay standing for a second. On our second panel, we are going
to hear from the following witnesses. Dr. Jan Del Signore,
President of the National Association of Veterans' Program
Administrators; Mr. Kevin O'Neil, Senior Employment and
Education Policy Associate at the American Legion; Ms. Karen
Kreutziger. What is it? Kreutziger? Okay. Kreutziger Powell,
Chief Executive Officer (CEO) of Flat Home Loans on behalf of
the Mortgage Bankers Association (MBA); Mr. Marquis. You know
what, I get a Marquess in my district, you are a Marquis. Mr.
Marquis Barefield, Assistant National Legislative Director at
Disabled American Veterans (DAV); and Mr. Richard Brookshire,
CEO and Founder of Black Veterans Project.
[Witnesses sworn.]
Mr. Van Orden. Thank you. Let the record reflect it. All
witnesses have answered in the affirmative. Now you may be
seated.
Dr. Del Signore, you are now recognized for 5 minutes to
deliver your testimony.
STATEMENT OF JAN DEL SIGNORE
Dr. Del Signore. Chairman Van Orden, Ranking Member Levin,
and members of the subcommittee, thank you for inviting me to
speak at this hearing on pending legislation. My name is Dr.
Jan Del Signore, President of the National Association of
Veterans' Program Administrators, NAVPA. NAVPA's membership
includes over 400 public and private colleges and universities
across the Nation that represents over 530,000 student
veterans.
Most of our membership is comprised of school certifying
officials, SCOs, and school administrators who administer or
oversee GI Bill benefits for our student veterans. NAVPA has
served as the voice of advocacy for veterans in higher
education since its founding in 1975. I appreciate the
opportunity to speak on the pending legislation topics that
pertain to the institutions of higher learning, IHLs, and how
previous outcomes have affected our military-connected students
and veterans.
NAVPA would like to address the following topics, the
Student Veteran Debt Relief Act of 2024 and Performing
Education for Veterans Act. One of our main concerns is how
Public Law 116-315 Section 1019, has been implemented by the
VA, causing undue hardship on student veterans and schools
alike. When the VA determines a GI Bill recipient was paid
Chapter 33 benefits incorrectly, those overpayment letters are
sent to the institution.
NAVPA members are reporting those overpayment letters
include tuition payments as far back as 2010. Per the SCO
handbook, the institution is required to retain student records
for 3 years. The institution has difficulty understanding the
reason for this 14-year-old debt since SCOs no longer have
access to the VA, one once technology or even the student's
records per Federal guidelines, or why it has taken the VA over
14 years to determine a debt.
Sometimes a student and/or graduate is unaware the VA has
rescinded their GI Bill approval. These students are placed
into collections causing unforeseen consequences such as
negatively impacting their credit rating and personal financial
portfolios. These actions are unknown to the student veteran as
the school can no longer contact them. Not all student debt has
been from years past, however.
When the VA has rescinded a student veteran's GI Bill
approval, NAVPA had one member report that both the school and
student received overpayment letters prior to the student's
final semester. This created a huge debt for the student where
he had to retain--return thousands of dollars of his housing
allowance back to the VA due to a VA clerical error, but was
then facing no housing support to complete his final semester
in school and graduate.
In addition, he now owed his school thousands of dollars in
tuition for the moneys the VA took back that were previously
approved under his benefit. This action was not only unfair to
that student veteran, but placed him into extreme financial
hardship and dire straits.
Our next topic concerns the Reform Education for Veterans
Act. Currently, schools are required to follow guidance from
the Department of Education, ED, and the DOD, Department of
Defense, and how to administer to students when or if they are
activated while attending the institution. The Department of ED
currently has an outline, and the Department of Defense
Instruction DOD 1322.25 provides guidance the schools must
adhere to.
NAVPA recommends an amendment to reflect current procedures
followed by the Department of ED and the Department of Defense
for when service members must withdraw or take a leave of
absence to perform military duty. Public Law 117-333 added a
time restraint upon the SCO to prepare for a VA compliance
survey. The compliance survey change currently limits
institutions to less than 10 business days to prepare for a
review once notified is received.
NAVPA members are reporting that there is not enough time
to prepare for a VA compliance survey. Many schools are not
receiving a reasonable amount of notification. Current
legislation is maximum of 10 business days to prepare,
organize, and upload the amount of documentation required. SCOs
are working from the time they receive notification until the
day of the site visit to gather the substantial amount of
required documentation for the VA compliance survey, regardless
of Federal holidays, weekends, school mandated events, or
personal life events.
Recently, one school reported they were notified on the
Thursday prior to Memorial Day for a compliance survey at their
institution for the following Wednesday. That was a 3-day
business day notification over a Federal holiday when the
school was closed.
Centralized schools are reporting that they are being
notified for different compliance survey locations on the same
day. These centralized schools are categorized as one
institution under the Department of Education, with these
surveys often overlapped, creating triple duty or more for the
SCO at times.
Many SCOs are veterans themselves and are reporting that
received notification for a VA compliance survey on the day
they have an appointment at the VA hospital. Then there is a
conflict and they cannot reschedule.
Thank you for the opportunity to testify today, and I look
forward to your questions regarding these topics.
[The Prepared Statement Of Jan Del Signore Appears In The
Appendix]
Mr. Van Orden. Thank you, Dr. Del Signore, your testimony
will be entered into the hearing record. Mr. O'Neil, you are
now recognized for 5 minutes to deliver your testimony.
STATEMENT OF KEVIN O'NEIL
Mr. O'Neil. Chairman Van Orden, Ranking Member Levin, and
distinguished members of this subcommittee, on behalf of
National Commander Daniel J. Seehafer, and our 1.6 million
members, the American Legion thanks you for the opportunity to
testify on important legislation affecting veterans and their
families. Before we delve into legislation, I want to express
my admiration for the subcommittee's unwavering commitment to
ensuring that veterans and their families receive the support
they deserve in all facets of life.
The legislation we are here to discuss today is a testament
to this commitment, reflecting a strong desire to provide
veterans with every available opportunity. These opportunities,
often life changing, can transform the lives of veterans in
ways that were once unimaginable. My own life was significantly
transformed by the benefits made available to me following my
military career. I remember sitting with a recruiter in 2008 at
the age of 19 and hearing about the array of benefits that I
would receive as a result of my military service.
Even at that time, despite having no desire to obtain a
degree, I found it astonishing that the GI Bill would allow
veterans to attend college with little to no cost out of
pocket. It took time for me to develop the desire to attend
college, but when I finally did, I felt extreme gratitude for
those who determined that veterans are deserving of these
benefits. I feel the same gratitude now for this subcommittee
as it continues to expand opportunities for veterans and their
families.
Keeping in line with the theme of education, the American
Legion would like to express its support for two bills that
will greatly improve education and training outcomes for
veterans. The first bill that we would like to address is the
Warriors to Workforce Act. The Warriors to Workforce Act, a
bill that the American Legion fully supports, aims to increase
the monthly housing allowance for veterans from 80 percent to
90 percent of the standard rate.
This adjustment is designed to support veterans continued
participation in apprenticeship and on-the-job training
programs, and to reduce dropout rates that often occur when
their housing allowance decreases after the program's first 6
months. If passed, this bill will be a significant step toward
ensuring that veterans have the necessary support to transition
into the civilian workforce. We firmly believe that no veteran
should be forced to discontinue their education due to housing
costs.
The American Legion commends Chairman Van Orden for his
leadership in the efforts of the subcommittee to improve
education and training outcomes for veterans. The second bill
that the American Legion strongly supports is H.R. 7543, the
Guard and Reserve GI Bill Parity Act of 2024. From safeguarding
our borders and capitals, to providing pandemic aid, and
supporting local law enforcement, National Guard and Reserve
service members have been increasingly called upon to face
unique challenges.
They often make significant sacrifices, leaving their
families and civilian employers for extended periods of time,
sometimes even accepting substantial pay cuts. Yet despite all
we ask of them, they often are denied fundamental benefits of
their service, particularly the GI Bill.
The American Legion believes that every day in uniform
counts. National Guard and Reserve service members who serve
alongside their active-duty counterparts deserve GI Bill
parity. The American Legion would like to thank Ranking Member
Levin and Takano for their leadership on this front and that of
the subcommittee for consistently advocating for GI Bill
parity.
Finally, the American Legion would like to express its
support for legislation not related to education, and that is
the VA Housing Loan Forever Act. Specifically, the American
Legion supports transferring housing loan benefits to spouses
and biological or legally adopted children. There is no option
for service members and veterans to transfer VA home loan
benefits to their spouse or child.
By enabling and supporting the families of our service
members and veterans, we are supporting the military community
as a whole. We thank Congressman Clyburn and his staff for
their commitment to service members, veterans, and their
families.
In closing, the American Legion would like to thank
Chairman Van Orden, Ranking Member Levin, and distinguished
members of this subcommittee for allowing us to be here today,
and I welcome any questions you may have.
[The Prepared Statement Of Kevin O'Neil Appears In The
Appendix]
Mr. Van Orden. Thank you, Mr. O'Neil. Mr. O'Neil's written
testimony will be entered into the hearing record. My fellow
legionnaire. Ms. Kreutziger Powell, you are now recognized for
5 minutes to deliver your testimony.
STATEMENT OF KAREN KREUTZIGER POWELL
Ms. Kreutziger Powell. Chairman Van Orden, Ranking Member
Levin, and members of the subcommittee, thank you for the
opportunity to testify today on behalf of the MBA. My name is
Karen Kreutziger Powell. I serve as the chief executive officer
at Flat Branch Home Loans, an independent residential mortgage
lender headquartered in Missouri and licensed in 38 states. I
have extensive experience originating, securitizing, and
servicing VA Home Loan program mortgages and am honored to
appear before this panel.
MBA appreciates the focus of today's hearing on proposed
legislation aimed at authorizing a permanent partial claim
program.
This program is designed to give our Nation's heroes loss
mitigation options comparable to those in other Federal housing
programs. The VA Home Loan program is a significant benefit
earned by our veterans through their sacrifice and service. MBA
recognizes the need to make this program more accessible,
operationally efficient, flexible, and competitive.
This is particularly crucial during times of individual
crisis for veterans and their families, and it is important
this benefit is not diminished. That is why I want to emphasize
MBA's strong concern that the VA funding fee should not be used
for expenses unrelated to the Home Loan program.
MBA has worked closely with committee staff on the topic of
partial claims, and we are pleased to offer recommendations
aimed at improving the proposed legislation. The VA may require
additional resources from Congress to implement these suggested
program improvements.
MBA welcomes legislation that authorizes a permanent
partial claim for the VA Home Loan program. A partial claim is
a standard, simple, and time-tested foreclosure prevention
solution available to borrowers in other Federal housing
programs, but one that is missing from the VA's loss mitigation
toolkit. It allows a borrower who has resolved a financial
hardship to move missed payments to the back of the loan
without interest following a period of forbearance.
This helps borrowers get back on track with regular
mortgage payments or pursue a modification for a more
affordable payment. Despite the introduction of the VA's newest
loss mitigation program, known as VASP, MBA believes veteran
homeowners facing temporary financial hardship deserve access
to partial claims to reinstate their loans and remain in their
homes.
Access to both of these solutions will provide struggling
borrowers with a more durable set of loss mitigation options to
preserve affordable homeownership. We are, however, concerned
that certain provisions of the current bill text, such as the
repayment plan, could adversely affect veteran homeowners,
mortgage servicers, and the VA. As drafted, this legislation
adds hurdles that may negatively impact borrower benefits.
These changes might be motivated by a desire to generate
revenue through interest income, but VA will recoup the initial
outlay most of the time as a partial claim requires repayment
at payoff, refinance, or maturity of the first lien mortgage.
No other government program requires repayment with
interest, and we urge amendments to the bill to achieve parity
with other Federal housing programs.
MBA appreciates your consideration of these
recommendations. Our association and its members will continue
to work with the agency, this committee, and other key
stakeholders to ensure veterans and their families have access
to more affordable, sustainable home ownership opportunities.
The final topic I want to highlight today concerns the
settlement agreement of the National Association of Realtors to
resolve various class action lawsuits alleging antitrust
violations. If approved, changes could impact decisions by
sellers to cover buyer-agent commission fees. VA's regulations
prohibit veterans from paying fees or commissions to real
estate agents in relation to a VA Home Loan program. This
prohibition puts veteran borrowers at a severe disadvantage as
they are prohibited from compensating real estate agents who
guide them through the home buying process.
MBA is pleased that the VA has taken temporary measures to
address the problem. We urge the VA to permanently amend its
regulations. Once again, MBA appreciates the opportunity to
comment on the issues impacting the VA Home Loan program and
the specific legislation before the subcommittee, today. We
value partnering with Congress and the VA to help veterans
utilize their earned benefit to achieve home ownership.
MBA looks forward to continuing to work with the
subcommittee to forge practical solutions and provide the VA
with the necessary resources to implement changes and improve
the Home Loan program.
I look forward to answering any questions you may have on
this or any of the proposed legislation.
[The Prepared Statement Of Karen Kreutziger Powell Appears
In The Appendix]
Mr. Van Orden. Thank you. The written statement of Ms.
Kreutziger Powell will be entered into the hearing record. Mr.
Barefield, you are now recognized for 5 minutes to deliver your
testimony.
STATEMENT OF MARQUIS BAREFIELD
Mr. Barefield. Thank you. Chairman Van Orden, Ranking
Member Levin, and members of the subcommittee, thank you for
inviting DAV to testify at today's hearing of the Subcommittee
on Economic Opportunity to consider the legislation for
discussion this afternoon. We have provided our written
statement for all of the bills under consideration today, and
we are pleased to provide our views on a few of the bills
impacting DAV members, their families, and survivors.
Mr. Chairman, at the beginning of the Fiscal Year 2024,
there were as many as 41,000 veterans homeless in the United
States. According to the VA, a key priority is to place
veterans experiencing homelessness into permanent housing. They
will accomplish this by using HUD rental assistance vouchers
for privately owned housing to assist veterans who are
experiencing homelessness.
This collaborative program between VA and HUD combines
housing vouchers with VA supportive services to help veterans
who are homeless, and their families find and sustain permanent
housing. VA case managers may connect these veterans with
supportive services such as healthcare, mental health
treatment, and substance use counseling to help them in their
recovery process and with their ability to maintain housing in
their community.
For these reasons, DAV is pleased to support H.R. 8560, the
End Veteran Homelessness Act. Many veterans have experienced
post-deployment conditions such as post-traumatic stress
disorder, traumatic brain injuries, and substance use
disorders. These conditions from military service often make
veterans participation in the workforce difficult or impossible
and can make them more prone to homelessness. We appreciate the
fact that this legislation would have case managers prioritize
assistance to vulnerably homeless veterans, especially those
with service-related conditions.
We urge Congress, excuse me, to authorize the HUD VASH
vouchers and require the VA to provide effective case
management necessary for homeless veterans to stay housed.
Another bill DAV fully supports is H.R. 7543, the Guard and
Reserve GI Bill Parity Act.
Currently, for guard and reserve members to be eligible for
post-9/11 GI Bill benefits, they must have served at least 90
aggregate days on active duty after September 10, 2001, or
served 30 continuous days on active duty after September 10,
2001, and were honorably discharged for a service-connected
disability. With the passage of this with the passage of this
legislation, National Guard and Reserve members will be
eligible to earn post-9/11 GI Bill education benefits for every
day spent in service to this country.
This legislation would address the inequity between all
duty statuses. We encourage Congress to remove barriers to
continued education and ensure full access and use of these
earned benefits.
Mr. Chairman, DAV is pleased to support your bill, H.R.
7920, the Agriculture Grants for Veterans Education and
Training Services Act, or the AG Vets Act. For individuals who
would like to pursue an opportunity to work in agricultural
fields, this grant program would go a long way in helping them
achieve the goal. Agriculture is a broad and diverse industry
that offers a wide range of jobs and opportunities.
There are many jobs in the agriculture that are in high
demand, including supportive positions like truck drivers,
construction workers, engineers, and mechanics. According to
the U.S. Bureau of Labor Statistics, the agriculture industry
employed over 876,000 people in 2021, and overall employment of
agricultural workers is projected not to change from 2021 to
2031. These grants are intended to support the establishment
and enhancement of farming and ranching opportunities for
veterans, as well as to be used for training, education,
curriculum development, and other activities that increase
veterans participation in agriculture.
Finally, Mr. Chairman DAV also supports the following
bills, H.R. 7896, the Vets Opportunity Act, H.R. 8514, to amend
Title 38, United States Code, to provide for an annual increase
in stipend for book supplies, equipment, and other educational
costs under post-9/11 education assistance programs of the
Department of Veterans Affairs; H.R. 8592; H.R. 8627; H.R.
8646; and, finally, H.R. 8661.
This concludes my testimony, and I welcome any questions
that you or members of the subcommittee make.
[The Prepared Statement Of Marquis Barefield Appears In The
Appendix]
Mr. Van Orden. Thank you, Mr. Barefield. I, too, am a
member of the Disabled Veterans of America, DAV, thank you very
much. The written statement of Mr. Barefield will be entered
into the hearing record. Mr. Brookshire, you are now recognized
for 5 minutes to deliver your testimony.
STATEMENT OF RICHARD BROOKSHIRE
Mr. Brookshire. Thank you. Chairman Van Orden, Ranking
Member Levin, and members of the subcommittee, on behalf of
Black Veterans Project, thank you for the opportunity to share
our views on H.R. 8607, the VA Housing Loan Forever Act. Black
Veterans Project is a nonpartisan 501(c)(3) nonprofit that
advances research, litigation and narrative storytelling to
actualize racial equity and reparative justice in and out of
uniform. Core to our mission is making reparations for
descendants of Black World War II veterans and their families
real in our lifetime.
June 22 marks 80 years since the GI Bill was initially
crafted and passed into law in 1944. This past week we
venerated the heroic actions of American troops on the shores
of Normandy. Today, we must remember an uncomfortable truth,
that the horrors of Jim Crow segregation were reinforced by our
government's administration of the GI Bill's housing and
education benefits programs meant to honor the contributions of
the greatest generation.
The sacrifices of over 1 million Black GIs were met with
redlining, with racial covenants, discriminatory practices in
banking and collegiate admissions, and broader divestments
tantamount to economic lynching. Collectively, these policies
coalesced to ensure diminutive numbers of Black veterans and
military families could access nor utilize their VA home loans.
VA Home Loan programs set millions of White veterans and their
families on a path to home ownership and to the accumulation of
generational wealth, bolstering and transforming the American
middle class.
The opportunity to right this particular historical wrong
is overdue, and the time to act has come. Black Veterans
Project unequivocally supports H.R. 8607, VA's Housing Loan
Forever Act, and its aim to amend Title 38 of the United States
Code to make certain legatees of certain veterans eligible for
housing loans guaranteed by the Secretary of Veteran Affairs
and for other purposes.
A 2021 Brandeis University study found that Black veterans
of World War II were obstructed from accessing the GI Bill and
were denied approximately $80,000 in wealth of generating
benefits between 1945 and 1956, worth nearly $70 billion today.
We encourage further exploration of how H.R. 8607 can become
law to redress that harm while maintaining a provision for
utilization by multiple descendants. A preliminary analysis by
the Center for Responsible Lending in 2022 showed that
expanding the VA housing loan pool would be revenue generating,
boost the housing market, and have a net positive impact on
reducing housing insecurity for military families.
We implore removing any undue burdens on military families
seeking redress by placing minimal barriers to accessibility in
the bill's final form. This bill must extend good faith to
descendants who meet credit income standards and to qualify for
access to the VA housing loan program. Last, I would be remiss
not to address how continued discrimination in lending persists
today, evidenced by the Cable Network News, Inc. (CNN)
investigation into the practices of Navy Federal Credit Union
and its home loan program late last year, whereby more than
half of its Black applicants were denied access to home loans.
Greater oversight and accountability are needed to ensure
that all financial institutions participating in the Department
of Veteran Affairs VA Home Loan program provide equitable
access and are held accountable for patterns of discrimination
in lending. Audits of major lenders participating in VA Home
Loan programs and penalties for bad actors must be implemented
if we want to avoid repeating the sins of our past. Ensuring
all veterans and military families have equitable access to
sustainable upward mobility is the responsibility of all
Americans, but particularly this subcommittee.
Black Veterans Project appreciates the opportunity to
express our views, and we look forward to working closely with
you and all the staff members as this measure advances. Thank
you.
[The Prepared Statement Of Richard Brookshire Appears In
The Appendix]
Mr. Van Orden. Thank you, Mr. Brookshire. Mr. Brookshire's
testimony will be entered into the hearing record. In
accordance with the committee rule 5-Echo, I ask unanimous
consent that Representative Davis from North Carolina be
permitted to participate in today's subcommittee hearing.
Hearing no objection, we will proceed.
I now recognize Ranking Member Levin for 5 minutes.
Mr. Levin. Thank you, Mr. Chairman. Mr. O'Neil, thank you
so much for your kind words. Earlier this year, as you
mentioned, we reintroduced the Guard and Reserve GI Bill Parity
Act. It is a very important bill to me. The GI Bill has allowed
millions of veterans to pursue a higher education and find
rewarding career paths. Service members consistently cite GI
Bill benefits as one of the top reasons they choose to serve in
our armed forces, given the opportunities those benefits
provide for them and their families. However, our Guard and
Reserve members only accrue benefits in very limited
circumstances. My bill would expand eligibility for the post-9/
11 GI Bill to count every day that a service member is paid and
in uniform toward benefit eligibility in order to achieve
parity for National Guard and Reserve members. Mr. O'Neil, how
would this impact your membership?
Mr. O'Neil. Thank you for the question. I think it would
greatly impact our membership. This is something we have been
focusing on for years. We have a resolution in place that
supports GI Bill parity. Our 1.6 million members agree that
this is something that should happen. Like I said, I think this
would greatly impact membership in a positive way.
Mr. Levin. Terrific. I agree with you, and I think all
service members, no matter whether they serve in the active or
reserve components, deserve benefits for doing their jobs and
risking their lives. I look forward to working with the
Chairman to get this bill across the finish line, this
Congress, at least, I hope.
Mr. Brookshire, I will turn to you. Thank you for your
testimony as well. The Home Loan Guarantee program is one of
the best known and most widely used veterans benefits. Mr.
Brookshire, in your testimony, you referenced the impact of
redlining. For the benefit of our committee, can you further
explain how a veteran was unable to use their home loan benefit
due to redlining?
Mr. Brookshire. Veterans were no, Black veterans were not
unable to use their home loans with respect to redlining, in
part because policies were put in place by the FHA that
essentially made it very difficult to get their homes insured
in particular areas, and it made it nearly impossible to
receive home loans from banks because of it. That essentially
was a policy that disabled many, many Black families from being
able to access the benefit.
Mr. Levin. Got it. It had the same effect. Just slightly
different. Can you explain how the VA Housing Loan Forever Act
will attempt to address racial inequities faced by veterans
from marginalized groups in accessing their earned GI Bill Home
Loan benefits?
Mr. Brookshire. This would enable families and descendants,
spouses, to be able to utilize a benefit that was earned and
had not been utilized. It would give them access to the VA Home
Loan benefits. A pretty standard, straightforward.
Mr. Levin. Very good. Anything else that you want to
mention about this issue?
Mr. Brookshire. Yes, I would like to say that, you know,
obviously this bill would be very important to Black vets, but
I think it would affect all veterans. Only 4.3 million
returning GIs use the benefit. There were almost 16 million
folks who served. This would benefit Hispanic vets, this would
benefit White vets, who were not able to use the loan for
whatever reason. Obviously, this is very important to Black
veterans as well.
Mr. Levin. Very much appreciate your comments. Thank you
all for your testimony and look forward to working with you all
to get these bills across the finish line.
Thank you, Mr. Chairman. Yield back.
Mr. Van Orden. Thank you, Ranking Member Levin. I now
recognize Ms. Ramirez for 5 minutes.
Ms. Ramirez. Thank you, Chairman. I have already told Rep.
Davis that he might get a treat. Well, no, just kidding. Thank
you again, Chairman. Just really grateful for your work and
Ranking Member Levin's work here, particularly as we are
talking about an issue that is so important to me, and that is
ending homelessness. Folks, as we know, our veterans continue
to be at risk and currently are experiencing homelessness. That
is why this hearing is so important and making sure that we are
providing every possible VA resource to our at-risk veterans is
crucial. Doing the work that I have done addressing issues of
homelessness, I know that it costs three, four times more to be
able to help someone once they are experiencing homelessness
than it is to prevent it.
Mr. Barefield, can you tell me how the End Veteran Homeless
Act will enable case managers, the folks that are providing
those support services, to help homeless veterans with
wraparound services like healthcare, like mental health
treatment, and substance use disorder compensating?
Mr. Barefield. Thank you for the question. Those case
managers would be able to intervene with homeless veterans who
need those services that you just mentioned, healthcare, mental
health services, and substance use disorder. Some homeless
veterans have those ailments or have that need for healthcare,
and they do not have a way to connect with VA medical centers
or the Community-Based Outpatient Clinics (CBOC) in their area.
Those case managers would prove to be very important by
connecting them with VA services that they can use and get
connected with to help get them out of the situations that they
are in.
Ms. Ramirez. Thank you so much, Mr. Barefield. Obviously,
as we think about it, housing is a need, but there are other
needs as well. Sometimes homelessness is a symptom of other
issues. I absolutely believe and have actually supervised many
case managers that do wraparound services. I absolutely agree
with you. I want to talk to you about homeless women veterans.
Particularly this legislation, how do you see, Mr. Barefield,
it assisting women veterans that may have a child or children
also in need of assistance?
Mr. Barefield. Thank you for that question as well. Women
veterans, especially those with children that may find
themselves being homeless, would definitely benefit from case
managers being able to connect them with not only the HUD
vouchers that they would need to remove them from the situation
that they are in, but the wraparound services, again, would
also be able to provide them with other needs that they would
have for themselves and for their children.
Ms. Ramirez. Thank you. I want to turn it over and talk a
little bit now with Mr. Brookshire. First, just thank you so
much for being here, and I really appreciated hearing from you
and your testimony and what it means today to do the work that
we must do, particularly our reparations for so many of our
Black veterans who have seen the challenges of disparity and
continue to see them. We know that veterans of color,
specifically Black and Latino veterans, are disproportionately
impacted by unsheltered homelessness. Look, there is no reason
any veteran, regardless of race, regardless of gender, should
experience homelessness. I think that we are all clear that we
must always be aware of how there are still racist policies
like redlining and segregation that feed into the cycles of
homelessness and poverty. Mr. Brookshire, can you explain how
the VA Housing Loan Forever Act would begin to redress veterans
who did not receive housing benefits during the implementation
of the GI Bill? You started talking a little bit about in your
testimony, but I would be interested in hearing more.
Mr. Brookshire. One, I think it is a matter of restoring
dignity to military families, Black military families
specifically, who were denied a benefit for generations. I
think, second, it would also help to boost home ownership in
the Black community. There, I believe the Center for
Responsible Lending did a study in 2022 that showed that I
think somewhere around 12 million potential descendants are
descended from World War II veterans. That would obviously be a
large pool. I think they recommended that the program be shaped
around first-time homebuyers. Obviously all of those things
need to be considered in the crafting of the bill as it moves
forward. For me, it is about, one, restoring dignity. I mean,
second, acknowledging a historical wrong that occurred when
this second greatest policy was put in place by this committee,
and also offering a pathway to home ownership for a community
that is still facing a lot of challenges.
Ms. Ramirez. Thank you, Mr. Brookshire. I had another
question, but I will wait, if there is another round. I will
yield back. Thank you.
Mr. Van Orden. Thank you, Ms. Ramirez. The Chair now
recognizes my great friend, Mr. Davis for 5 minutes.
Mr. Davis. Well, good afternoon, Chairman Van Orden and
Ranking Member Levin. It is an honor to appear before you, and
I must say, a treat. This is a very distinguished subcommittee
that is taking on awesome and incredible work. I want to
personally thank you for keeping up the fight for every day,
every single day, for our Nation's veterans, and especially the
46,000 veterans in North Carolina's First congressional
District, which more than 15,000 were or are currently enrolled
in an educational program. H.R. 8627, the Student Veteran Debt
Relief Act of 2024, will allow veterans who have decided to
continue their education after serving our country to remain
enrolled in education programs at educational institutions
across the country while they respond to a student loan
overpayment.
Our veterans should never have to worry about their
educational future if a review determines they received a
student loan overpayment due to a fault that has nothing to do
with them. The Student Veteran Debt Relief Act will ensure that
our Nation's veterans take responsibility in paying back
student loan overpayments without compromising their financial
well-being or their education. No veteran should have to worry
about their degree or certificate that they are going to be
delayed because of a student loan overdue payment. We must
ensure morale remains high. Thank you for this opportunity.
I would like to direct my question today to Mr. Barefield.
My question is, how might the Student Veteran Debt Relief Act
help to collect loan overpayments in a timely fashion while
preventing veterans from facing the hardship of disenrollment
from their educational institution?
Mr. Barefield. Thank you for the question, Mr. Davis. This
legislation, one, would squarely put the responsibility on the
VA for creating a debt that the veteran had no intended or no
intentions of, or no way of knowing about. The VA puts the
responsibility on the veteran to make sure that they know
classes are being paid for, that enrollment has been taken care
of. A lot of this, this bill would relieve a lot of that
pressure off of the veteran to make sure that they know that
something that they did not create, or cause will not be a
burden on them from completing their education.
Mr. Davis. Again, I believe we need to continue to do
everything we can to help our veterans along the way. This is
legislation that we have enormous interest in. I urge support.
I want to thank the opportunity to come before the subcommittee
today. I would always thank all of our veterans who continue to
fight for other veterans across the Nation. Thank you so much,
and I appreciate you, my friend, and the Chair and the ranking
member.
I yield back.
Mr. Van Orden. Mr. Davis, thank you. In fact, Ms. Ramirez
was being truthful. This is some fantastic Vern's, Wisconsin
beer cheddar, and it is for you. Tell your friends they want to
come to the subcommittee. There is absolutely treats awaiting
for you.
I now recognize myself for 5 minutes. Mr. O'Neil, I am
alive today because there was 50 Pennsylvania National Guard
dudes helping protect me and the person that became the first
democratically elected Prime Minister of Iraq. His name is
Ibrahim al-Jaafari. I had those cats, and they were our second
ring of security. The last three service members that were
killed in action were killed in Jordan. They were reservists.
What they did not really widely publish is that there was a
tremendous amount of National Guardsmen that were injured
during that same attack. The enemy does not care if you are a
Reservist. They do not care if you are a National Guardsman.
They are not aiming at your title; they are aiming at the
American flag on your shoulder. We would be wise to remember
that collectively as a Nation. This is a thing that this
particular issue that you have very broad bipartisan support,
and we will continue to work for parity. We got to get down to
the brass tacks, nuts and bolts, to figure out how to do it
properly. Again, I do not care if you are a Reservist. I do not
care if you are a National Guardsman. I want to make sure that
the benefits that you have earned through your service are
granted to you at the commiserate level.
Ms. Kreutziger Powell, how many people would you have on
your staff to service 40,000 to 60,000 home loans?
Ms. Kreutziger Powell. Currently for us, we have about a $7
billion portfolio, which is about 40,000 units, and it is
between 40 and 45 employees to service that portfolio.
Mr. Van Orden. Okay. That is in the tune of about $16
billion?
Ms. Kreutziger Powell. For us, it is $7 billion. We have
really low loan amounts.
Mr. Van Orden. Okay.
Ms. Kreutziger Powell. When you are servicing units matter,
and so 40,000 loans is what we service.
Mr. Van Orden. Okay. What is the level of subject matter
expertise with your people that are servicing these loans?
Ms. Kreutziger Powell. There is multiple departments and
extreme levels of expertise, specifically in the loss
mitigation field.
Mr. Van Orden. How long does it normally take someone to
gain the commiserate amount of expertise to make sure that they
can run these books at a low-level of failure?
Ms. Kreutziger Powell. There is multiple layers, but if you
are truly running the department, I would say several, several
years of experience.
Mr. Van Orden. Okay. It is not a pickup game. Right? You do
not just like roll in on Monday and then on Tuesday, you are
servicing loans----
Ms. Kreutziger Powell. No.
Mr. Van Orden.--to the tune of $16 billion and 60,000
loans.
Ms. Kreutziger Powell. No, sir.
Mr. Van Orden. Okay. The problem is, we have some people
that do not quite understand that, and I think that they are
treading into waters and they do not know what they are doing.
That is an issue.
Mr. Brookshire, my colleague, Mr. Clyburn, came to my
office a little while ago and brought up this issue to me. He
did that because both of my parents were Freedom Riders in the
sixties. They left for Mankato State. They went down to
register African Americans to vote. This is part of my family's
DNA, trying to rectify these things and making sure that we are
not discriminated against people due to immutable
characteristics, such as race, sex, and all that stuff.
I have some questions, because, again, we got to nail this.
Mr. Brookshire. Mm-hmm.
Mr. Van Orden. You know what I mean? How many potential
folks are you talking about that would be eligible for this
program?
Mr. Brookshire. I do not know the answer to that question.
I think that is part of the reason that we have presented the
bill now is so that we can start to get answers and get a
Congressional Budget Office (CBO) score.
Mr. Van Orden. Okay. What if the person who was given
access to a Veterans Home Loan Guarantee wants to purchase an
additional home?
Mr. Brookshire. Again, I would not know the answer to that
question because the bill is still in draft form.
Mr. Van Orden. Okay, so here is the VA--and this is going
to sound crazy. I see Mr. Rodriguez over there. He is probably
going to have a heart attack. I agree with them in their
assessment of a lot of stuff. I mean, that is going to--you
want to write that one down, Mike?
What my concerns are is that we do need to have things
definable. What is definable is, and it is irrefutable, is that
many Black Americans during that period of time in our history
were discriminated against because of an immutable
characteristic. No one is arguing that at all. That happened.
That is real. If we can rectify something, we should. My
concern is that until we are able to clearly define numbers, we
cannot understand the cost and we cannot understand how to
appropriately apply this. For instance, the way that this is
currently written, it is not compatible with how an active-duty
service member's eligibility for VA Home Loan Guarantee is.
Mr. Brookshire. Mm-hmm.
Mr. Van Orden. Like, I can use it, but I cannot transfer
it.
Mr. Brookshire. Mm-hmm.
Mr. Van Orden. My educational benefits I can transfer to my
wife and to a child. I cannot give it to my grandchild or a
cousin or any living descendant.
Mr. Brookshire. Mm-hmm.
Mr. Van Orden. I would like these things, these programs,
if we could have some type of standardization across the board.
Mr. Brookshire. Mm-hmm.
Mr. Van Orden. If we use an existing model like the GI
Bill, which I think would be prudent, then a significant
portion of the people that are potentially identified in this
bill as written would no longer be eligible for it. I have had
these discussions with Mr. Clyburn and I am going to continue
to work with him to get this down to something that we can
truly quantify.
Mr. Brookshire. Mm-hmm.
Mr. Van Orden. Here is how I have decided to legislate. If
it makes sense, we are going to do it.
Mr. Brookshire. Mm-hmm.
Mr. Van Orden. If it does not make sense, we are going to
ask questions. Right now, it does not make sense. That is why I
am asking questions. I will speak to my colleague, Mr. Clyburn,
again. Then if we can get to yes with those answers, then we do
it. I do not care what the CBO score is. I do not care what
your political party affiliation is. I do not care. If it makes
sense, it makes sense. If we have the opportunity from the
subcommittee to help rectify historic wrong, that is what we
are going to do.
Mr. Brookshire. Mm-hmm.
Mr. Van Orden. I want you to stay in very close contact
with our teams and let us see if we can get to yes.
Mr. Brookshire. Okay.
Mr. Van Orden. Is that cool?
Mr. Brookshire. Yep.
Mr. Van Orden. All right. Okay. Well, with that said, they
are going to call votes here shortly.
Ms. Ramirez. I will submit my questions.
Mr. Van Orden. Are you sure, Ms. Ramirez.
Ms. Ramirez will submit her questions, her follow-on
question, for the record. I want to thank you, everyone. I am
going to recognize Ranking Member Levin, for any concluding
remarks you might have.
Mr. Levin. I just want to thank the Chairman for his
cooperation in so many of these important bills and thank our
witnesses for all their hard work. Hopefully we get a lot done
in the next few months here.
Mr. Van Orden. Hopefully. I want to thank you guys for
coming and for your participation in today's hearing. I have
received a number of statements for the record. I have read
them all. I make a habit of doing that before we sit down here
and talk. I ask unanimous consent that all members may have 5
legislative days to revise and extend their remarks and include
extraneous material. Without objection, so ordered. This
hearing is adjourned.
[Whereupon, at 3:31 p.m., the subcommittee was adjourned.]
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A P P E N D I X
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Prepared Statements of Witnesses
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Prepared Statement of John Bell
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Prepared Statement of Jan Del Signore
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Prepared Statement of Kevin O'Neil
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Prepared Statement of Karen Kreutziger Powell
Chairman Van Orden, Ranking Member Levin, and members of the
Subcommittee, thank you for the opportunity to testify today on behalf
of the Mortgage Bankers Association (``MBA'').\1\
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\1\ The Mortgage Bankers Association (MBA) is the national
association representing the real estate finance industry, an industry
that employs more than 275,000 people in virtually every community in
the country. Headquartered in Washington, DC, the association works to
ensure the continued strength of the Nation's residential and
commercial real estate markets, to expand homeownership, and to extend
access to affordable housing to all Americans. MBA promotes fair and
ethical lending practices and fosters professional excellence among
real estate finance employees through a wide range of educational
programs and a variety of publications. Its membership of more than
2,000 companies includes all elements of real estate finance:
independent mortgage banks, mortgage brokers, commercial banks,
thrifts, REITs, Wall Street conduits, life insurance companies, credit
unions, and others in the mortgage lending field. For additional
information, visit MBA's website: www.mba.org.
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My name is Karen Kreutziger Powell, and I am the Chief Executive
Officer at Flat Branch Home Loans, an independent residential mortgage
lender licensed in thirty-six states. I am appearing today in my
capacity as a member of MBA's Residential Board of Governors - and as a
former Co-Chair of MBA's Independent Mortgage Banker (IMB) Executive
Council.
As a lender with deep personal experience originating,
securitizing, and servicing Department of Veterans Affairs (VA) Home
Loan Program mortgages, I am honored to appear today before this panel.
Specifically, MBA appreciates the focus of today's hearing on
proposed legislation that would improve the available suite of VA Home
Loan benefits by authorizing a permanent partial claim program - one
designed to give our Nation's heroes a set of loss mitigation options
comparable to those offered through other Federal housing programs.
I am also prepared to comment on proposed legislation designed to
expand access to the VA Home Loan program to include legatees of
Veterans who never used their housing benefit, and I am happy to
continue to elaborate on MBA's strongly held belief that the VA funding
fee should not be used to as a budgetary offset for expenses unrelated
to the Home Loan program.
In recent weeks, MBA has enjoyed the opportunity to work closely
with House Veterans' Affairs Committee staff on the topic of partial
claims. The industry is grateful for the progress made during those
discussions. Accordingly, I am pleased to offer recommendations aimed
at improving the proposed legislation. It is important to note the VA
may require additional resources from Congress to implement some of
these suggested program improvements and changes.
As noted in appearances by prior MBA witnesses before this panel, I
want to underscore that our industry, including the many individual MBA
member firms who originate and service VA loans, continues to have a
positive and productive working relationship with the agency.
The VA Home Loan Program is one of the most significant benefits
our Nation's heroes earn through their sacrifice and service. MBA
recognizes the need to help make this important program more
accessible, operationally efficient, flexible, and competitive against
other loan options. This is particularly important during times of
individual crisis for Veterans and their families - in keeping with the
topics and challenges being discussed here today.
We understand this work will involve reaching a bipartisan
consensus with the members of this Subcommittee (and full Committee),
the full House, your Senate counterparts, the agency itself, and all
other key market participants and advocates. MBA looks forward to
playing a constructive role as part of this ongoing dialog.
The VA Home Loan Reform Act (H.R. 8647)
As noted, MBA welcomes legislation that authorizes a permanent
partial claim for the VA Home Loan Program. A partial claim is a
standard, simple, and time-tested foreclosure prevention solution
available to borrowers in other Federal housing programs but is sorely
missing from the VA's loss mitigation toolkit.\2\ A partial claim
allows a borrower who has resolved a financial hardship to move their
missed payments to the back of the loan following a period of
forbearance. Through a partial claim, borrowers can get back on track
with their regular monthly mortgage payments or pursue a modification
to achieve a more affordable payment.
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\2\ The COVID-19 Veterans Assistance Partial Claim (VAPCP) was
discontinued in October 2022. The VAPCPC was modeled after the Federal
Housing Administration's (FHA) and Rural Housing Service's (RHS)
partial claim, as well as Fannie Mae and Freddie Mac's Payment
Deferral.
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Despite the recent introduction of the VA's newest loss mitigation
program that attempts to combat today's high interest rate environment,
the Veterans Affairs Servicing Purchase (VASP) program, MBA believes
Veteran homeowners facing a short-term, temporary financial hardship
deserve access to this vital tool to reinstate their loan and remain in
their homes.\3\ It seems contradictory that the reward of their
sacrifice and service is access to a loan program that offers less of a
safety net than other broadly available government loan programs.
Access to both solutions will provide Veteran homeowners with a more
durable set of loss mitigation options to preserve affordable
homeownership in times of financial stress.
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\3\ The Veterans Affairs Servicing Purchase Program allows the
servicer to modify qualifying borrowers to 2.5 percent over 30 or 40
years after the loan is purchased by the VA.
---------------------------------------------------------------------------
While MBA appreciates the legislation's recognition of the need for
a partial claim, we are concerned that certain provisions of the bill,
namely the repayment plan, will adversely affect Veteran homeowners,
mortgage servicers, and the VA. As drafted, H.R. 8647 adds certain
hurdles that may negatively impact the borrower benefits of a partial
claim. These changes may be motivated by a desire to generate revenue
from a partial claim through interest income, but VA will recoup the
initial outlay the vast majority of the time as a partial claim
requires a borrower to repay their arrearage at payoff, refinance, or
maturity of the underlying first lien mortgage.\4\ No other government
program requires a repayment of the partial claim with interest and we
urge amendments to the bill to achieve parity with other Federal
housing programs.
---------------------------------------------------------------------------
\4\ The average life of a mortgage loan is under 7 years, which
will fluctuate with market interest rates.
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To do so, the bill should remove Section 3(c), which requires a
borrower to agree to enter a monthly repayment within 1 year of
receiving the partial claim funds or face potential interest (0.5
percent) for failing to do so. While the terms of repayment are
undefined, such a provision is not in the best interest of the Veteran
borrower and creates unnecessary risk. By definition, a repayment plan
does not help borrowers return to the same, if not better, financial
position than before their financial hardship.\5\
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\5\ An interest penalty - while nominal--also creates the risk of
negative amortization creating a greater financial burden to the
Veteran than underlying delinquency itself.
---------------------------------------------------------------------------
Additionally, creating a repayment plan raises complications around
how to treat the (otherwise performing) first lien mortgage if the
borrower is delinquent on the repayment plan. The VA would also need to
pay for and manage a complex payment processing operation to collect
the interest paid on the partial claims, which could cut into the
revenue generated under this approach. To address these issues, we
suggest defining a partial claim as a subordinate, non-interest-bearing
junior lien that does not require repayment during the mortgage term,
similar to the FHA program's partial claim or the GSE payment deferral.
Second, Section 3 should specify that a partial claim is not a
claim against the guaranty. The loan guaranty is a fundamental
statutory protection against the risk of default a lender receives at
loan termination. Currently, H.R. 8647 defines a partial claim as a
purchase of a portion of the indebtedness to resolve a default,
consistent with VA's existing purchase authority that allows VA to pay
a claim before loan termination. Paying the guaranty portion before
termination will adversely affect credit losses for lenders and
servicers, and because of the impact on Ginnie Mae security pricing,
would also adversely impact affordable financing for Veterans in the
future. We recommend that the bill affirmatively state the guaranty
cannot be used to fund a partial claim and that, instead, it is a
direct purchase of a portion of the indebtedness.
MBA appreciates your consideration of the recommendations for
improvement to the bill outlined here. Our association - and its
members that originate, service, and securitize VA Home Loan Program
mortgages - looks forward to continuing to work with the agency, this
committee, and other key stakeholders on H.R. 8647.
The VA Housing Loan Forever Act of 2023 (H.R. 8607)
The VA Housing Loan Forever Act of 2023 is a well-intended piece of
legislation meant to redress the harm that historical discrimination
inflicted on Veterans of color - including World War II Veterans -
during a period of time stretching from the 1940's to the 1970's. MBA
supports the bill's intent, which is to transfer the VA housing benefit
to the legitimate heirs of those brave service members who were
wrongfully denied the benefit they earned.
For this legislation to become a successful policy that best
supports the families of those Veterans' whose benefits were not
realized, we recommend several changes be made to the legislation in
its current form. These changes are offered to address potential
implementation concerns, as well as mitigate concerns that the bill, as
drafted, could expose the VA Home Loan program to a considerable threat
of fraud and abuse without proper safeguards in place.
As the legislation is currently drafted, VA would be responsible to
confirm legatee status on an application-level basis, validate and
authenticate the transfer of the benefit, validate and authenticate
revocations of the transfer, and maintain a data base of such transfers
and revocations. MBA fears these new cumulative set of responsibilities
will prove to be difficult to track and administratively unwieldy for
the agency.
Therefore, we are concerned that the requirements needed to verify
the legatee will lead VA to ultimately delegate this responsibility to
lenders in a similar fashion to the way the agency currently delegates
credit underwriting approval. Without an appropriate ``safe harbor''
for lenders, this potential responsibility would present a major
liability risk for participating lenders who make good faith efforts to
ascertain and validate claimed legatee status - but may not always get
it right.
The VA program is unique among Federal programs in that it offers a
competitively priced ``zero-down'' mortgage. This is an especially
attractive option in a market where down payment funds remain the
biggest hurdle for first time home buyers, and VA does not have a cap
on loan limits for higher-income homebuyers. Taken together, an overly
broad transfer of benefits will be ripe for abuse and/or invite
instances of outright fraud, such as forged signatures of a Veteran or
signatures made under duress, in addition to the anticipated
difficulties of dealing with an elderly population of potential new
beneficiaries. MBA is concerned about the burden this would impose on
the VA--and potentially the lender by delegation--to police these
anticipated program changes.
Existing data consistently shows that loans to Veteran borrowers
perform better than loans to other borrower cohorts when factors like
FICO score and debt-to-income ratio are taken into account. If the VA
program is expanded to include a much larger and potentially
unpredictable non-veteran population, we anticipate the VA program
would begin performing similarly to, or perhaps even worse, than the
FHA loan program over time, meaning higher delinquency rates and
greater claim volume. This, in turn, could lead to higher Funding Fees,
more aggressive lender credit overlays, or the VA itself tightening the
program credit requirements. We worry that these potential changes
would reduce the overall value of the VA loan benefit over time and
diminish the advantage that it affords Veterans over other loan
programs.
Other Potential Policy Options
NAR Litigation Settlement Impacts on VA Borrowers
As you are aware, the National Association of Realtors (NAR)
entered a proposed settlement agreement, pending court approval, to
settle numerous class action lawsuits alleging violations of antitrust
law. If approved, the key changes required by the settlement are
projected to take effect in August and could impact the decision made
by some sellers to cover the cost of the buyer agent commission. In
some instances, sellers may decide to forego covering a buyer's broker
commission - particularly if buyers are offering to cover the cost
themselves. Today, the VA prohibits Veterans from paying fees or
commissions to real estate agents or brokers in relation to a VA home
loan. Thus, without the ability to potentially match competing purchase
offers that are willing to cover buyer agent commission, Veteran
borrowers face a distinct disadvantage.
MBA is glad that VA has now taken a temporary measure to address
this prohibition. We urge the VA to permanently amend its regulations
to allow Veteran borrowers to pay reasonable and customary fees and
commissions to retain agents that will represent their interests in the
transaction.
Drafting Table
As we have noted in prior testimony before this Subcommittee, MBA
encourages Congress to ensure the VA has the necessary resources to
implement a permanent public input process for the development of
transformative policies before they are required to be implemented.
Similar to FHA, a ``Drafting Table'' for interested stakeholders would
allow the VA to receive thoughtful comments on the impact of changes to
a lender and servicer's operations prior to implementation and
enforcement. Transparency and collaboration in policy development will
ensure VA's mission is best achieved, will result in a more efficient
mortgage program, and will improve outcomes for veterans.
VA Funding Fees
MBA remains concerned about the repeated use of VA home loan
funding fee increases to pay for non-housing related veterans'
benefits. As Congress considers several wide-ranging pieces of
legislation that would expand or alter veteran benefits across a range
of programs, I want to make clear that MBA opposes legislation that
increases or extends VA funding fees to offset the costs associated
with new and/or unrelated expenditures.
Simply stated, these funding fee increases and extensions
implemented in recent years (and being considered once again) are not
in any way correlated with the actual credit risks of Veteran
homebuyers. If that were the case, the actual funding fee would be a
fraction of where it currently sits today, meaning that far more
Veterans would be able to qualify to purchase a home. Instead, it is
out of reach for many Veterans today. Those who can access the benefit
today are paying far more, in the midst of a housing affordability
crisis, to help subsidize other Federal programs.
These continued increases and extensions of previous increases
severely threaten the VA home loan program. While any individual
funding fee increase may be small, the cumulative impact of the many
hikes and extensions over the past decade is worrisome and significant.
We recognize that in many instances the funds diverted from the home
loan program fund worthy and important initiatives, but firmly believe
that Congress should fund that work separately rather than diminish the
strength of the home loan program to achieve those ends.
We urge Congress to work with the Biden Administration to ensure
that VA funding fees are set at levels commensurate with the risks
associated with VA-guaranteed home lending. Congress should conduct
appropriate oversight and analysis of past funding fee increases before
simply defaulting to the practice of levying further increases or
extensions.
Conclusion
Once again, MBA appreciates the opportunity to comment on the many
critical issues that impact the VA Home Loan Program, including the
specific legislation before the Subcommittee at this hearing today. We
value our partnership with Congress and the VA on these subjects - and
our shared mission to help Veterans utilize their earned benefit to
achieve homeownership.
Our association looks forward to continuing to work with this
Subcommittee - and the full Committee - to forge practical solutions
including, but not limited to, the legislation to make permanent a VA
partial claim option to help distressed borrowers. We also look forward
to working with Congress to help provide the VA with the resources
necessary to implement changes and improve the delivery of the Home
Loan Program benefit to our Nation's heroes.
I look forward to answering any questions you may have.
Prepared Statement of Marquis Barefield
Chairman Van Orden, Ranking Member Levin and Members of the
Subcommittee:
DAV (Disabled American Veterans) has a mission that includes the
principle that this Nation's first duty to veterans is the
rehabilitation and welfare of its wartime disabled. This principle
envisions vocational rehabilitation and/or education to assist these
veterans to prepare for and obtain gainful employment, enhanced
opportunities for employment, job placement and self-employment, so
that the full array of talents and abilities of disabled veterans are
used productively and to their greatest levels.
We are pleased to provide our views on the bills impacting service-
disabled veterans, their families and the programs administered by the
Department of Veterans Affairs (VA) that are under consideration by the
Subcommittee.
H.R. 226, the Veterans Collaboration Act
The Veterans Collaboration Act would mandate VA to initiate a 2-
year pilot program aimed at fostering cooperation between the VA,
nonprofit organizations, and institutions of higher learning to provide
administrative support to veterans.
The program would focus on collaborating with veterans service
organizations (VSO) and educational institutions offering pro bono
legal aid to veterans for filing disability compensation claims.
Additionally, it would require the Department to establish metrics to
identify and promote the most effective service providers, target
states with large veteran populations, and utilize social media for
promotion and outreach.
The Secretary would also be required to submit quarterly reports on
the program's progress and its impact on veterans to the relevant
congressional committees. DAV has no resolution from our membership on
this matter, and therefore takes no position on this bill.
H.R. 7543, the Guard and Reserve GI Bill Parity Act of 2024
GI Bill education benefits date back to 1944; serving as a critical
tool in helping service members transition back into civilian life and
closing the opportunity gap created by military service with their
civilian counterparts. Congress has previously attempted to correct GI
Bill inequities between Active Duty and Reserve Component service
members.
H.R. 7543, the Guard and Reserve GI Bill Parity Act, would grant
National Guard and Reservist service members Post-9/11 GI Bill
eligibility for every day spent in service to this country.
Specifically, this legislation would ensure that Guard and Reservists
receive credit for every day they spend in uniform in a Federal duty
status under titles 10 or 32 for GI Bill purposes. This following
service would count toward earning the Post-9/11 GI Bill benefits:
conducting operations, training, attending military schools, conducting
weekend drills, completion of annual training requirements, or
responding to national disasters.
The Guard and Reserve GI Bill Parity Act of 2024 would universally
address this inequity for all duty statuses. DAV fully supports H.R.
7543, the Guard and Reserve GI Bill Parity Act, in accordance with DAV
Resolution No. 542. We must remove barriers to continued education and
ensure full access and use of earned benefits.
H.R. 7896, the Veterans Education and Technical Skills Opportunity Act
of 2024
More and more student veterans are gravitating toward virtual
educational programs and we need to ensure that they have the same
access to online learning as their non-veteran counterparts.
H.R. 7896, the Veterans Education and Technical Skills (VETS)
Opportunity Act of 2024, or VETS Opportunity Act, would change the
criteria for the approval of certain independent study programs under
VA educational assistance programs. Specifically, it would update the
definition of eligible institutions of higher education in relation to
student financial assistance programs. By expanding post-9/11 GI Bill
eligibility to include high-quality, partially online certificate
programs in areas, such as welding, Computer Numerical Control
machining, and heating, ventilation, air conditioning and
refrigeration, this legislation ensures veterans have access to
opportunities that align with the needs of employers.
DAV fully supports H.R. 7896, the VETS Opportunity Act, in
accordance with DAV Resolution No. 542. We support giving student
veterans more opportunities, through programs like independent study,
to pursue their educational goals.
H.R. 7920, Agriculture Grants for Veterans Education and Training
Services Act
The U.S. agricultural industry not only provides daily necessities,
but millions of stable, enriching careers. There are many jobs in
agriculture that are in high demand, including supportive positions
like truck drivers, construction workers, engineers, and mechanics.
There are direct agriculture related careers in biotech industries
developing new and (we hope) better seeds, chemists working to find new
herbicides and insecticides, soil analysts, as well as marketing
positions that help bring crops to the supermarket shelves.
H.R. 7920, the Agriculture Grants (AG) for Veterans Education and
Training Services (VETS) Act, or AG VETS Act, would establish a program
where the Secretary of Agriculture will award competitive grants to
eligible entities, such as cooperative extension services, land-grant
colleges, non-land-grant colleges of agriculture, Hispanic-serving
agricultural colleges and universities, State departments of
agriculture, nonprofit organizations, community-based organizations, or
combinations thereof.
These grants are intended to support the establishment and
enhancement of farming and ranching opportunities for veterans. The
funds are to be used for training, education, curriculum development,
workshops, tours, field experiences, or other activities that increase
veterans' participation in agriculture. Recipients would be required to
match the grant amount with non-Federal funds. The bill would authorize
$5 million annually for fiscal years 2025 through 2029 to support this
initiative.
DAV fully supports H.R. 7920, the AG VETS Act, in accordance with
DAV Resolution No. 542. We must ensure that veterans are afforded the
opportunity to develop proper skills and gain meaningful employment to
take care of themselves and support their families.
H.R. 8514, to provide for an annual increase in stipend for books,
supplies, equipment, and other educational costs under VA's Post-9/11
Educational
Assistance Program
According to the website educationdata.org, the average cost of
books and supplies varies widely between programs.
At public 4-year institutions, students pay an average of
$1,220 annually for textbooks and supplies.
Books and supplies at private, non-profit institutions
average $1,215; at private, for-profit institutions, the average cost
is $990.
At public 2-year institutions, students pay an average of
$1,467 each year for books and supplies.
At private, nonprofit institutions, books and supplies
average $930; at private, for-profit 2-year colleges, the average cost
is $1,501.
H.R. 8514 would increase the monthly stipend for books and supplies
from $1,000 to $1,400 and on an annual basis beginning with Fiscal Year
2025. The increase would be tied to the Consumer Price Index and based
on the average U.S. city for the 12-month period ending on June 30
preceding the beginning of the Fiscal Year for which the increase is
made. The increased percentage amount would be rounded to the nearest
dollar.
In accordance with DAV Resolution No. 157, DAV supports H.R. 8514,
as this legislation would help defray associated costs for service-
disabled veterans and survivors using their educational benefits.
H.R. 8560, the End Veteran Homelessness Act of 2024
Many veterans experience post-deployment readjustment issues and
conditions such as post-traumatic stress disorder, traumatic brain
injuries and substance use disorders. These conditions acquired during
or worsened by military service often make veterans' participation in
the workforce difficult or impossible and can make them more prone to
homelessness.
VA initiatives to end homelessness among veterans through enhanced
collaboration with other Federal, State, faith-based, VSO and community
partners have made significant in-roads in decreasing homelessness
among our Nation's veterans.
The End Veteran Homelessness Act would have case managers
prioritize assistance to vulnerable homeless veterans, including
veterans who are homeless and have disabilities (including chronic
mental illness, chronic substance abuse disorders or chronic physical
disabilities). A homeless veteran or a veteran at risk of being
homeless who the VA determines does not require case management, may be
afforded a HUD-VASH voucher if the use is included in the notice of
operating requirements of the program.
The bill would authorize payment of administrative fees to the
public housing agencies for costs of administering vouchers and other
eligible expenses used to facilitate the leasing of the vouchers, such
as security deposits and other cost related to retention and support of
participating owners. It also requires the Government Accounting Office
(GAO) to complete and submit a report with specific information as it
pertains to the HUD-VASH program to the appropriate congressional
committees.
In accordance with DAV Resolution No. 083, DAV fully supports H.R.
8560, the End Veteran Homelessness Act. We urge Congress to authorize
vouchers through the Department of Housing and Urban Development and
require the VA to provide effective case management, health and
supportive services necessary for homeless veterans to stay housed.
H.R. 8592, the Warriors to Workforce Act
The VA currently pays a veteran up to $1,000 each academic year
while they are in an apprenticeship or other on-the-job training
program.
This draft legislation would increase the amount of educational
assistance paid by the VA to an eligible individual during the first
year of a full-time program of apprenticeship or other on-the-job
training from 80 percent to 90 percent.
We support this legislation in accordance with DAV Resolution No.
157. Transitioning service members and veterans benefit from
apprenticeship programs and we support increasing the amount of the
educational assistance to 90 percent for full-time program
participants.
H.R. 8627, the Student Veteran Debt Relief Act of 2024
Currently, a veteran is responsible for keeping track of their
tuition and fee account balance. Veterans are advised to visit their
school's financial office regularly to review their account, ensure the
charges are correct and that payments and refunds are processed
correctly. Veterans are also encouraged to contact their school
certified official to make sure the certification sent to the VA
matches their schedule. Currently, the veteran is held responsible if
an overpayment is created.
This draft legislation would transfer responsibility for
overpayment to the VA and no longer hold a veteran, eligible person or
educational institution at fault. The veteran, eligible person or
educational institution would have to show that the VA made the error
in eligibility or that the DoD provided incorrect information to the VA
about the veteran or the eligible person for educational assistance.
If the VA determines that the overpayment to the veteran or
eligible person would likely result in the inability for them to
continue in their course or program, the VA will determine if the
liability is eligible for a hardship waiver or try to recover the
overpayment from the veteran or eligible person.
If the VA cannot recover the overpayment from the veteran or
eligible person, the VA would be required to contact the Under
Secretary for Benefits to attempt to recover the overpayment or
establish a payment plan with the veteran or eligible person.
The legislation would ensure that the VA may not recover an
overpayment unless it is identified and the educational institution has
been notified of the overpayment. Additionally, not more than 10 years
can pass before the overpayment can be collected by the Department.
In accordance with DAV Resolution No. 097, we support this draft
legislation. DAV supports legislation that requires the VA to waive any
additional amounts of debt created by its own lack of timely action on
evidence and information received regarding education changes.
H.R. 8646, the Modernizing the Veterans On-Campus Experience Act of
2024
This draft legislation would expand the use of VetSuccess on Campus
(VSOC) counselors to more than one institution of higher learning and
lower the number of people that they are required to provide services
to from 50 to 25 individuals.
The VSOC program aims to help veterans, service members, and their
qualified dependents succeed and thrive through a coordinated delivery
of on-campus benefits assistance and counseling, leading to completion
of their education and preparing them to enter the labor market in
viable careers.
VSOC counselors are easily accessible on campuses, which helps to
quickly resolve any problems that could potentially interfere with a
veteran's educational program, to include assisting with disability
accommodations. If needed, they can also provide referrals for health
services through VA Medical Centers, Community-Based Outpatient
Clinics, or Vet Centers.
DAV supports this draft legislation in accordance with DAV
Resolution No. 542. Disabled veterans participating in Veterans
Readiness and Employment benefit from having VSOCs available to assist
them with any barriers to their educational goals. This draft bill
would help ensure that VA is effectively utilizing this important
resource.
H.R. 8661, the Reforming Education for Veterans Act
This draft legislation would allow a student veteran that has
received orders to go back to active duty to withdraw from a period of
education, take a leave of absence or enter into an agreement with the
institution of higher learning concerning the course of education and
determine if the course has been satisfactorily completed. The
institution of higher learning may enter into an agreement with a
student veteran if they have completed at least half of a course of
covered education.
This legislation would also require the VA to notify the school
certifying official (SCO) of any updates to the SCO handbook within 14
business days of the update.
In accordance with DAV Resolution No. 157, we support this draft
bill as it would improve VA's education benefit for service-disabled
veterans. Specifically, this legislation would protect the student
veteran from having to retake a course of education if called back to
active duty.
Draft bill, the VA Home Loan Program Reform Act
This draft legislation would allow the VA to perform certain
actions if a veteran is faced with foreclosure of a VA-backed home
loan, to include:
Paying the holder of the loan guaranteed an amount
necessary to avoid foreclosure of the loan;
Requiring the holder of the loan and the veteran to
execute all documents necessary to ensure the VA obtains a secured
interest in the property covered by the loan;
Requiring the holder of the loan to take any actions
necessary to carry out these actions, including preparing, executing,
transmitting, receiving and recording documents, and requiring the
holder of the loan to place the loan in forbearance.
The legislation authorizes VA to carry out a program, to be known
as the ``Partial Claim Program'' under which the Department may make a
partial claim if the VA determines that such loan is in default or at
risk of defaulting. The amount of a partial claim will not exceed 20
percent of the unpaid principle balance of the guaranteed loan.
Provisions in the bill also allow the VA to establish guidelines to
protect its interest in this program and include specific consequences
for the individual or entity that had the VA-backed loan if default or
foreclosure occurs while in the program.
Additionally, any decision made by the VA on a partial claim would
not be subject to judicial review. Nor would any decision made on a
partial claim be treated as a decision under the law that affects
another benefit. The VA may not make a partial claim after September
30, 2026.
DAV has no resolution specific to this issue and therefore takes no
position on this draft legislation.
Draft bill, the VA Housing Loan Forever Act of 2023
This draft legislation would allow the transfer of the VA home loan
benefits of the veteran to one or more legatees of the veteran. The
veteran would have had to have served during a specific time period and
not used their home loan benefits during their lifetime.
The VA home loan benefits of a deceased veteran could be
transferred to an individual if they apply for the benefits during a
10-year period and have been determined by the VA to be a legatee of
the veteran. The term ``legatee'' is defined as: a spouse or surviving
spouse; a biological or legally adopted child; a grandchild; and any
other direct descendant.
Once identified as the legatee of the veteran, that individual
would be entitled to receive the full housing loan benefits of the
veteran. The legatee of the veteran could use the benefits immediately
upon such transfer but could not transfer the housing loan benefits to
another individual. A veteran may revoke the benefit of transferring
their housing loan benefits to a legatee by written notice to the VA.
DAV has no resolution specific to this issue; therefore takes no
position on this draft legislation.
Mr. Chairman, this concludes my statement. We appreciate the
opportunity to provide our views on the legislation before the
Subcommittee and look forward to addressing questions members may have.
Prepared Statement of Richard Brookshire
Chairman Van Orden, Ranking Member Levin, and members of the
Subcommittee, on behalf of Black Veterans Project, thank you for the
opportunity to share our views on H.R. 8607, the Housing Loan Forever
Act.
Black Veterans Project is a nonpartisan 501(c)3 non-profit
organization that advances research, litigation, and narrative
storytelling to advance racial equity and reparative justice in and out
of uniform. Core to our mission is making reparations for descendants
of Black World War II veterans real in our lifetime.
June 22nd marks eighty years since the GI Bill was initially
drafted and passed into law in 1944.
This past week, we've venerated the heroic actions of American
troops on the shores of Normandy. Today, we must remember an
uncomfortable truth--that the horrors of Jim Crow segregation were
reinforced by how our government chose to administer the GI Bill's
housing and education benefit programs.
The sacrifices of over 1 million Black GIs were met with redlining,
racial covenants, discriminatory practices in banking and collegiate
admissions and broader divestments tantamount to an economic lynching.
Collectively, these policies coalesced to ensure diminutive numbers
of Black veterans and military families could access nor utilize their
VA home loans. VA's home loan program set millions of white veterans on
the path to homeownership and the accumulation of generational wealth--
bolstering and transforming the American middle class.
The opportunity to right this particular historical wrong is
overdue, and the time to act has come.
H.R. 8607--VA Housing Loan Forever Act
Black Veterans Project unequivocally supports legislation to amend
Title 38 of the United States Code to make certain legatees of certain
veterans eligible for housing loans guaranteed by the Secretary of
Veterans Affairs and for other purposes.
A 2021 Brandeis University study alleges that Black World War II
veterans who were obstructed from accessing the GI Bill were denied
approximately $80,000 in wealth-generating benefits between 1945 and
1956. We encourage further exploration of how H.R. 8607 can become law,
maintaining a provision for utilization by multiple decedents.
A preliminary analysis by the Center for Responsible Lending in
2022 showed that expanding the VA housing loan pool would be revenue-
generating, boost the housing market and have a net-positive impact on
reducing housing insecurity for military families.
We implore removing any undue burdens on families seeking redress
by placing minimal barriers to accessibility to this benefit. Rather,
this bill must extend good faith to those who still must meet credit/
income standards to qualify and access the VA home loan program.
Last, I would be remiss not to address how continued discrimination
in lending persists today - evidenced by the CNN investigation into the
practices of Navy Federal Credit Union and its home loan program late
last year, whereby more than half of Black applicants were denied
access to home loans.
Greater oversight and accountability are needed to ensure that all
financial institutions participating in the Department of Veterans
Affairs VA home loan program provide equitable access and are held
accountable for patterns of discrimination. Audits of major lenders and
penalties for bad actors must be implemented if we want to avoid
repeating the sins of our past.
Ensuring all veterans and military families have equitable access
to sustainable upward mobility is the responsibility of all of us.
Black Veterans Project appreciates the opportunity to express our
views before this Subcommittee and we look forward to working closely
with the staff members as this measure advances.
Statements for the Record
----------
Prepared Statement of National Consumer Law Center
On behalf of the low-income clients of the National Consumer Law
Center, thank you to Chairman Van Orden and Ranking Member Levin for
the opportunity to submit a statement for the record at the June 12
hearing on: ``Pending Legislation.'' We write to share our response to
H.R. 8647 VA Home Loan Program Reform Act (hereinafter, ``H.R. 8647'').
It is a bedrock principle of Federal housing policy that borrowers
who are facing financial hardship should have access to workout options
to bring their loans current and avoid foreclosure. These home
retention policies provide stability for homeowners by giving them a
path to recovery after financial hardships and provide stability for
neighborhoods that suffer when foreclosure hits.
We strongly believe that Veteran borrowers with VA-guaranteed loans
should have access to foreclosure alternatives that are at least as
favorable as the options available to other federally backed borrowers.
This should include giving Veteran borrowers who have overcome a
temporary hardship access to a simple option that defers past due
amounts to the end of the loan and allows them to resume making their
original monthly payments.
Borrowers with Fannie Mae, Freddie Mac, FHA-insured, and USDA-
guaranteed loans all have this type of option, and VA-guarantee
borrowers should have access to one as well. The previous VA partial
claim program established during the pandemic did provide such an
option, but VA discontinued the program in October 2022. The current
deferral program that VA allows is generally not economically viable
for mortgage servicers of VA-guaranteed loans and, thus, is unused and
does not fill the gap. And traditional modifications, which are better
suited to assist borrowers facing ongoing rather than temporary
hardships, are not effective for most borrowers at the current mortgage
rate.
We generally support legislative efforts to clarify that VA has the
authority to establish a partial claim program, though we believe the
VA already has this authority. However, VA has not reestablished a
partial claim program, and we recognize that legislation would be an
important impetus for getting it in place. We appreciate efforts from
both parties to address this issue.
In assessing the various legislative efforts to address the partial
claim, which includes H.R. 8647 and S. 3728, the Veterans Housing
Stability Act of 2024 (hereinafter, ``S. 3728''), we prefer S. 3728 for
a few reasons. First, H.R. 8647 imposes an interest rate on partial
claims when the borrower chooses not to make monthly payments on the
partial claim. As stated above, VA borrowers should have at least
equivalent loss mitigation options as other federally backed borrowers,
and those other programs do not charge interest. Moreover, the interest
rate may push some borrowers into a monthly payment plan on their
partial claim on top of their existing monthly payment, and we know
that this type of total monthly payment increase also increases the
likelihood that the borrower redefaults. Additionally, we do not think
the interest rate imposed would provide substantial revenue for the
program and, thus, it seems unnecessary.
Second, H.R. 8647 imposes a statutory cap of 20 percent of the loan
balance on partial claims. We prefer the 30 percent cap imposed by S.
3728. We believe it is important for VA to have flexibility in its
operation of the program. In addition, the 30 percent cap aligns with
the other federally backed programs.
Finally, H.R. 8647 does not clarify some of the additional
authorities VA should have to help borrowers who fall behind that S.
3728 bill does clarify, including authorities related to forbearance
and moratorium. We believe the goal of the bill is to clarify VA's
ability to take these actions and so it is critical to include the
moratorium and forbearance authorities as S. 3728 does.
Under either bill, it is our understanding that there will be
significant challenges in how to fund a partial claim program at the
VA. We urge VA to work with Veterans, Members of Congress from both
parties, consumer advocates, and industry participants to discuss how
to establish the partial claim while also protecting the long-term
health of the VA Home Loan Guaranty. It is crucial to establish this
program to help Veterans in need.
If you have any questions or would like to meet about this
statement, please contact Steve Sharpe, Senior Attorney at the National
Consumer Law Center, at [email protected] or Kanav Bhagat, consultant to
the Center for Responsible Lending, at [email protected].
Prepared Statement of Navy Federal Credit Union
Navy Federal Credit Union is committed to expanding economic
opportunity and access to credit for our diverse community of members.
That is why we hired a leading civil rights lawyer and former
Commissioner of the U.S. Commission on Civil Rights, Debo Adegbile of
WilmerHale, to review our mortgage lending. That external review
confirmed what we at Navy Federal know to be true - we treat our
members fairly, regardless of their race or background.
Mr. Adegbile has now completed his review, and found no race-based
decision-making in our mortgage underwriting. His analysis showed that
when all non-public underwriting factors are accounted for - including
credit score, income verification, debt-to-income ratio, and incomplete
credit applications - any suggestion of discrimination by the CNN
article is completely unsupported.
As the largest home lender to Black Americans by percentage of
loans successfully made, we continue to work to make home ownership
accessible to all.
Navy Federal values each and every one of our members. Black
members make up one in four of our members, and we rank first among
large lenders in the percentage of mortgage loans made to Black
borrowers. We are proud to serve as an industry leader in expanding
economic opportunity for our 13 million members, and we are committed
to identifying opportunities to further drive homeownership. Working
with our internal stakeholders and external partners, we are currently
examining initiatives to build on our mission of expanding access to
credit for our diverse community of members and continue our efforts to
address systemic barriers to homeownership. This is a challenge that
requires action across the industry, and we are working to make sure we
do our part.
These initiatives will include Navy Federal's newly created Office
of Financial Opportunity, led by Executive Vice President of Real
Estate Lending Brittani Ivey. These steps are in addition to the many
programs Navy Federal has in place as part of our continued work to
help members achieve their financial and home-ownership goals, such as
free financial counseling and credit-modeling products to help our 13
million members around the world learn how to build and maintain
credit, unique support for first-time homebuyers of modest means,
educational seminars for members, and more.
Statement from WilmerHale Partner Debo Adegbile
``CNN's analysis was incomplete, and the article's suggestion that
Navy Federal discriminates against its members is unsupported. In fact,
our review found that when all relevant factors are controlled for,
which CNN did not do, the difference in approval rates between Black
and White borrowers falls to less than 1 percent. The remaining
difference in approval rates is explained by legitimate, non-race
factors like income verification and incomplete credit applications.
Navy Federal is exploring opportunities to enhance its mortgage lending
practices and drive further access to home ownership.''
Prepared Statement of Housing Policy Council
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Prepared Statement of The Military Coalition
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Prepared Statement of National Association of Realtors
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Prepared Statement of Student Veterans of America
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Prepared Statement of Veterans Education Success
Chairman Van Orden, Ranking Member Levin, and Members of the
Subcommittee:
We thank you for the opportunity to share this statement for the
record to be considered during this hearing, which includes many
notable bills addressing topics in higher education and veterans'
education benefits. Veterans Education Success is a nonprofit
organization with the mission of advancing higher education success for
veterans, service members, and military families, and protecting the
integrity and promise of the GI Bill and other Federal education
programs.
In this statement, we address the following legislative proposals:
the Guard and Reserve GI Bill Parity Act of 2024, the Student Veteran
Debt Relief Act of 2024, the GI Bill Book Stipend Act, the Reforming
Education for Veterans Act, the Modernizing the Veterans On-Campus
Experience Act of 2024, the Warriors to Workforce Act, and the Veterans
Education and Technical Skills Opportunity Act of 2024.
We applaud the Subcommittee's dedication to our Nation's veterans
and look forward to working closely with the staff members on the
advancement of many of these important topics for broader
consideration.
H.R. 7543, the Guard and Reserve GI Bill Parity Act of 2024
This bill would expand Post-9/11 Educational Assistance eligibility
to include National Guard Members performing active duty service. It
broadens the definition of qualifying service to encompass various
active and training duties as specified in Titles 10 and 32, and
applies these provisions retroactively to service since September 11,
2001. The amendments will take effect 1 year after enactment.
We are pleased to see Congress address this long-overdue issue
affecting the eligibility of reserve component members for the Post-9/
11 GI Bill by reintroducing the Guard and Reserve GI Bill Parity
Act.\1\ The current law mandates that Guard and Reserve Members must
have served at least 90 cumulative or 30 continuous days on active duty
to accrue ``qualifying days,'' creating a disadvantage in accessing
their deserved GI Bill educational benefits. Despite the obligation for
reserve component members to ``serve in uniform'' and fulfill duty
responsibilities for a minimum of 39 non-consecutive days each fiscal
year, these periods of service do not currently contribute toward Post-
9/11 GI Bill eligibility. We appreciate the Subcommittee's work to
address this disparity.
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\1\ Veterans Education Success. Joint U.S. Senate and U.S. House of
Representatives Veterans Affairs Committee Hearing. ``Statement for the
Record: Legislative Priorities Submitted to the Senate and House
Committees on Veterans Affairs 2024,'' (Mar. 13, 2024), https://
vetsedsuccess.org/statement-for-the-record-legislative-priorities-
submitted-to-the-senate-and-house-committees-on-veterans-affairs-2024/.
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We also applaud this legislation for applying retroactively, and
that it would apply to all service performed on or after September 11,
2001. We appreciate the strong bipartisan support for this legislation,
and are especially grateful to Chairman Van Orden and Representatives
Ciscomani and Mrvan of this Subcommittee for their co-sponsorship. We
look forward to seeing this legislation advance, and we support this
bill.
H.R.--, the Student Veteran Debt Relief Act of 2024
This bill would modify the requirements for recovering overpayments
of educational assistance by VA. Through proposed subparagraph (f)(1),
GI Bill overpayments would not be considered a liability of the student
or institution if the U.S. Department of Veterans Affairs (VA) made an
error or received incorrect information from the U.S. Department of
Defense (DOD).
In addition, proposed subparagraph (f)(2) directs that in instances
where an overpayment has been made and the Secretary determines in
consultation with an institution that liability for the overpayment
would likely result in the student not being able to continue at the
school, VA would be required to review the liability to determine if it
is eligible for a potential hardship waiver, and if not, enter into a
payment plan with the student.
Pursuant to proposed subsection (g), the Secretary may not recover
an overpayment under Sec. 3685 unless the overpayment occurs and is
identified after the enactment of this Act, and the institution is
notified and the overpayment identified within 10 years of the
overpayment occurring.
We cannot support this bill as it is not good for student veterans.
It undermines the Protect the GI Bill Act, enacted in 2021, which
ensured that overpayments were the obligation of the institution.
We have serious concerns about subparagraph f(2) because the
language of the bill as well as the problem purportedly being resolved
by the bill are unclear. Of particular concern is that subparagraph
f(2) appears to authorize the Secretary, acting in concert with the
school, to shift the school's responsibility for repayment (provided in
existing 38 U.S.C. Sec. 3685(b)) from the school to the student.
The bill specifies that the Secretary shall seek repayment from the
student if, in consultation with the institution, the Secretary
determines liability for the overpayment would likely result in the
student not being able to continue in the program. The bill does not
appear to provide the student the option of still requiring VA to
recover the overpayment from the school. Rather, the Secretary is
required to review the liability for a hardship waiver, and if it does
not apply, enter into a payment plan with the student. In doing so, the
bill undermines the Protect the GI Bill Act.\2\
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\2\ The purpose of paragraph f(2) is made even more unclear because
VA should already be reviewing student debt to VA for hardship pursuant
to 38 U.S.C. Sec. 5302. If the intent of the bill is to require VA to
consider whether a student's liability to VA would likely cause the
student to withdraw from school as part of a hardship review, then that
could be achieved with a simpler provision.
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Student veterans who contact us often have complaints about
misleading information and the low quality education they receive from
predatory schools, and they do not want to spend any more of their GI
Bill at the school. Further, students may not want to assume
obligations under a payment plan with VA. This bill would put students
in jeopardy because institutions could misuse this provision to provide
unreliable and self-serving information to the Secretary about the
student's circumstances, resulting in the repayment obligation being
shifted to a student who actually may not intend to continue in the
program.
Especially troublesome, predatory schools could use the threat of
aggressive collection practices and prohibitive institutional debt to
intimidate students into staying enrolled and assuming a payment plan
with VA with more favorable terms. This bill would unintentionally
provide schools with the means to intimidate students to remain
enrolled at an institution or incentivize students to stay enrolled at
a low-quality school.
Similar to subparagraph f(2), the problem to be solved and the
scope of the solution in proposed subsection (g) are not clear. It
appears that the Secretary will be prohibited from seeking recovery of
overpayments under Section 3685 that occurred prior to the enactment of
the Act, and that this protection may only relate to seeking recovery
from institutions.
We urge the Committee to set aside this current draft legislation
and engage in further fact-finding and policy development without the
unintended consequences of undermining the 2021 law that holds
institutions liable for overpayments.
H.R.--, To amend title 38, United States Code, to provide for an annual
increase in stipend for books, supplies, equipment, and other
educational costs under Post-9/11 Educational Assistance Program of
Department of Veterans Affairs
This bill proposes an annual increase in the stipend for books,
supplies, equipment, and other educational costs under the Post-9/11 GI
Bill. The key provisions include raising the stipend amount to $1,400
from the current maximum of $1,000 and introducing a new requirement
for the Secretary to adjust the stipend based on the Consumer Price
Index (CPI) each fiscal year.
The present book stipend amount has not changed since the original
Post-9/11 GI Bill legislation passed in 2008.\3\ This stipend has not
kept pace with the increased costs of educational materials. The Bureau
of Labor and Statistics inflation calculator estimates that the
economic value of $1,000 in 2008 is worth nearly $1,500 today, a
roughly 50 percent increase, and yet the book stipend has remained
stagnant.\4\
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\3\ Section 5003 of H.R. 2642, the Supplemental Appropriations Act
of 2008 authorized the book stipend, codified as 38 U.S.C.
Sec. 3313(e)(2)(B)(iv)(I).
\4\ The Bureau of Labor and Statistics inflation calculator
estimates $1,000 in 2008 would be valued at roughly $1,485 in 2024.
Reference: https://www.bls.gov/data/inflation_calculator.htm
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We support this common-sense legislation to modernize the amount of
the book stipend and additional increases based on the CPI. We thank
the Subcommittee for addressing this long overdue issue.
H.R.--, the Reforming Education for Veterans Act
This bill would seek to codify certain policies for GI Bill
students during periods of military service, including the requirement
of a leave of absence policy. It would also decrease the number of
compliance surveys for educational institutions that have multiple
locations, and mandate timely updates to the school certifying
officials (SCO) handbook.
We support the intended goal of improving protections for student
veterans who are mobilized for a period of military service. However,
we believe those protections are already enshrined in two separate
pieces of legislation: the Isakson-Roe Act, which conditions
eligibility for VA funds on similar accommodations, and the Higher
Education Opportunity Act, which requires all Title IV institutions to
accommodate servicemembers when they are activated.\5\, \6\
We are concerned that the enactment of yet a third piece of legislation
mandating essentially the same accommodations is not only redundant,
but also could lead to confusion and complicate compliance.
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\5\ Public Law 116-315, Section 1018 stipulates institutions must,
``maintain a policy that (i) ensures that members of the Armed Forces,
including the reserve components and the National Guard, who enroll in
a course of education at the educational institution may be readmitted
at such institution if such members are temporarily unavailable or have
to suspend such enrollment by reason of serving in the Armed Forces;
and (ii) otherwise accommodates such members during short absences by
reason of such service.''
\6\ Public Law 110-315, Section 487 stipulates institutions must,
``Any student whose absence from an institution of higher education is
necessitated by reason of service in the uniformed services shall be
entitled to readmission to the institution of higher education if (A)
the student (or an appropriate officer of the Armed Forces or official
of the Department of Defense) gives advance written or verbal notice of
such service to the appropriate official at the institution of higher
education; (B) the cumulative length of the absence and of all previous
absences from that institution of higher education by reason of service
in the uniformed services does not exceed 5 years; and (C) except as
otherwise provided in this section, the student submits a notification
of intent to reenroll in the institution of higher education in
accordance with the provisions of paragraph (4).
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We urge the Committee to abandon Section 3, which proposes limiting
annual compliance surveys at multi-campus institutions to no more than
one. We are alarmed at the notion of allowing any venue where veterans
may enroll and use their hard-earned benefits to skip a compliance
survey. This would be a giveaway to college chains that operate many
locations. Conditions at one campus location do not necessarily reflect
the circumstances of other campuses, and even aggregating data across
multiple campuses can mask subpar conditions that fall below the
compliance thresholds.
Ensuring compliance by every branch is important to protecting
student veterans and the GI Bill. Compliance burdens are the price that
institutions voluntarily accept in exchange for eligibility for GI Bill
funds. We believe it is entirely reasonable that VA be allowed to
ensure that all venues enrolling veterans are in compliance with the
requirements that Congress has seen fit to impose on institutional
participants.
Finally, we acknowledge the importance of timely updates to SCOs,
as they are oftentimes the frontline support for student veterans on
campus. Ensuring they have the most current guidance, consistent with
the statute and intent of Congress, is critical to the proper
functioning of GI Bill benefits. We support this section of the bill,
and would support the inclusion of this provision in future
legislation.
H.R.--, the Modernizing the Veterans On-Campus Experience Act of 2024
This bill would improve on-campus educational and vocational
counseling provided by VA's VetSuccess on Campus (VSOC) program. It
revises counselor qualifications, allowing them to serve at multiple
campuses and limiting their caseloads to 25 individuals at a time.
A key feature of this bill is allowing counselors to serve multiple
campuses. This flexibility addresses the issue of limited resources at
some institutions, ensuring that more veterans can access these
services regardless of their location. It maximizes the use of
available counselors and creates a broader support network.
Additionally, the bill limits the number of individuals a counselor
can serve to 25 at a time. This cap would help to maintain the quality
and effectiveness of the counseling services, ensuring that each
veteran receives personalized attention.
We support this legislation, and thank Chairman Van Orden for
leading this proposal.
H.R.--, Warriors to Workforce Act
This bill would increase the monthly housing allowance (MHA)
stipend from 80 percent to 90 percent for veterans during the total
first year of full-time apprenticeship or on-job training (OJT)
programs. Presently, veterans receive 100 percent of the MHA for the
first 6 months, which decreases by 20 percent every 6 months that
follows.
We believe there are a variety of beneficial pathways available
with the GI Bill, including apprenticeships and OJT programs. While
these programs are lesser known in comparison to traditional 2-and 4-
year degrees, for many of the veterans who make use of these pathways
they can offer long-term gainful employment.\7\ We believe additional
monetary support during the transition period will allow veterans to
focus more on their training, and to worry less about their finances.
---------------------------------------------------------------------------
\7\ A 2015 Government Accountability Office report titled,
``Outcome Measures and More Outreach Would Enhance the Post-9/11 On-
the-Job Training and Apprenticeship Programs'' found that veterans make
use of OJT and apprenticeship programs at a rate of approximately 2
percent of over all GI Bill users. For more details, reference: https:/
/www.gao.gov/assets/gao-16-215t.pdf.
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We do note, as a practical matter, that an increase in funding of
the second 6-month period creates a greater disparity as the MHA rate
would drop in the following period from the proposed 90 percent down to
60 percent (as opposed dropping from 80 percent to 60 percent). We
would encourage the Subcommittee to consider this element in
discussions with VA, and ways to mitigate any risks associated with a
steeper decline in the MHA during that period.
We support this legislation, and thank the Subcommittee for
presenting it for consideration. We also thank the Chairman for
championing this proposal, and look forward to providing any additional
feedback on it as the Subcommittee may request.
H.R. 7986, the Veterans Education and Technical Skills Opportunity Act
of 2024
The Veterans Education and Technical Skills Opportunity Act of
2024, or ``VETS Opportunity Act'' would modify the criteria for
approval of certain independent study programs. Specifically, the bill
seeks to amend 38 U.S.C. Sec. 3680A(a)(4)(B)(iii)(II) to add, as an
exception to the prohibition against independent study programs, for-
profit programs that do not lead to a standard college degree or to a
certificate at an institution of higher learning.
We urge the Committee to set aside this legislation and undertake
further analysis. The rationale and actual need for this legislation
are unclear, and the current proposal would pose dangerous unintended
consequences to student veterans.
Some proponents of this legislation contend it is needed so that
``hybrid programs'' - defined as programs offered as a combination of
online and resident training - at for-profit institutions may be
approved, but this argument is fundamentally flawed and misleading.
Hybrid standard college degree and certificate programs offered at
institutions of higher learning, which includes for-profit schools, may
be approved under Sec. 3680A(a)(4) already. Therefore, the proposed
amendments to Sec. 3680(A) are unnecessary for providing access to
hybrid programs, if that is the intention of the legislation.
As the bill is currently drafted, the changes will open up the GI
Bill to a subset of so-called independent study programs that were
wisely excluded when Sec. 3680A was last amended, due to the
exploitative nature and lack of accountability.\8\ The exclusion of
those programs was extensively considered, and agreed upon by
overwhelmingly bipartisan congressional majorities as part of the
passage of the Forever GI Bill in 2017. We believe this legislation
would open up the GI Bill to some of the worst and most exploitative
programs.
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\8\ Public Law 115-48, Section 302, https://www.Congress.gov/115/
statute/STATUTE-131/STATUTE-131-Pg973.pdf
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From a technical perspective, it is unclear why this legislation
proposes expanding the current definition to also include subsection
(a) of Sec. 3680A, as inclusion of foreign programs under this change
would be unusual. Furthermore, the term ``is qualified to participate
in the student financial assistance programs authorized by Title IV of
that Act'' would be a weak and inadequate standard. We believe, at
minimum, it should be amended to read, ``participates in the student
financial assistance programs authorized by Title IV of that Act.'' Any
programs that would be eligible for Title IV funds, but elect to not
accept Title IV funding, often do so to avoid the requirements and
scrutiny that accompany a signed program participating agreement with
the U.S. Department of Education.\9\
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\9\ There may be rare exceptions to this, such as some religious
institutions that object to title IV resources on the basis of their
beliefs.
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We strongly oppose this legislation, and encourage the Subcommittee
not to advance it for additional consideration.
Conclusion
Veterans Education Success sincerely appreciates the opportunity to
express our views before this Subcommittee. We look forward to the
discussion and review of these proposals, and we are grateful for the
continued opportunities to collaborate on these topics.
Information Required by Rule XI2(g)(4) of the House of Representatives
Pursuant to Rule XI2(g)(4) of the House of Representatives, Veterans
Education Success has not received any Federal grants in Fiscal Year
2024, nor has it received any Federal grants in the two previous Fiscal
Years.
Prepared Statement of Veterans of Foreign Wars of the United States
Chairman Van Orden, Ranking Member Levin, and members of the
subcommittee, on behalf of the men and women of the Veterans of Foreign
Wars of the United States (VFW) and its Auxiliary, thank you for the
opportunity to provide our remarks on legislation pending before this
subcommittee.
H.R. 226, Veterans Collaboration Act
The VFW supports the intent of this legislation to establish a
pilot program that encourages greater collaboration between the
Department of Veterans Affairs (VA) and nonprofit organizations and
institutions of higher education. This would promote VA partnerships
with Veterans Service Organizations that provide claims assistance. It
would also encourage partnerships with educational institutions that
provide pro bono legal services to veterans.
Our one suggested language modification to this legislation is to
specify that partnerships with Veterans Service Organizations include
free assistance by VA-accredited representatives. The VFW strongly
supports greater outreach to veterans to access their earned benefits
and believes no veteran should have to pay a fee for those services.
This is an important clarification to include in the bill text.
H.R. 7543, Guard and Reserve GI Bill Parity Act of 2024
The VFW strongly supports this legislation to create equity in VA
education benefits for Reserve Component service members. National
Guard and Reserve members train alongside active duty service members
and consistently make sacrifices without always earning the same VA
education benefits. This bill would allow any day in uniform receiving
military pay to count toward Post-9/11 GI Bill eligibility. For years,
the sacrifices of Guard and Reserve service members have been
overlooked in achieving GI Bill eligibility. The time is now for parity
with all the armed forces in earning VA education benefits.
H.R. 7920, Agriculture Grants for Veterans Education and Training
Services Act
The VFW supports this legislation to create a program within the
Department of Agriculture to award competitive grants to entities that
provide farming and ranching opportunities to veterans. While a
traditional 4-year degree program might not be desirable for every
veteran after service, we support training and education opportunities
for all types of employment. Farming and ranching work can provide
satisfying, stable work that contributes to the community in a positive
way.
Discussion Draft, To amend title 38, United States Code, to provide for
an annual increase in stipend for books, supplies, equipment, and other
educational costs under Post-9/11 Educational Assistance Program of
Department of Veterans Affairs
The VFW supports this legislation to increase the annual stipend
for books, supplies, and equipment under the Post-9/11 GI Bill from
$1,000 to $1,400. While the cost of books and printed materials has
increased significantly over the last decade, and even more so due to
recent levels of inflation, VA's book stipend for students has remained
stagnant. This benefit is a critical component to a veteran's education
and should be increased regularly to meet rising costs.
Discussion Draft, To amend title 38, United States Code, to increase
the amount of educational assistance paid by the Secretary of Veterans
Affairs to an eligible individual during the first year of a full-time
program of apprenticeship or other on-job training
The VFW supports this legislation to increase the housing allowance
during the second 6-month period of an apprenticeship or on-the-job
training program for which a veteran is using VA education benefits.
The increase from 80 percent to 90 percent would help veterans complete
these important education programs that provide direct job training
while ensuring their basic housing needs are covered. The VFW would
also like to see more data reported on the success of these programs,
as well as information to better understand the needs of the veterans
who decide to drop out before completion.
Discussion Draft, End Veteran Homelessness Act of 2024
The VFW supports this proposal to modify the Department of Housing
and Urban Development-VA Supportive Housing (HUD-VASH) program. HUD-
VASH combines HUD's Housing Choice Voucher rental assistance with VA
case management and supportive services. This proposal would expand
case management for homeless veterans to provide assistance with rental
costs and administrative fees such as security deposits. The bill would
also establish an annual report on the HUD-VASH program including usage
data, staffing ratios, services provided to veterans, and barriers that
prevented voucher use. Last, the proposal includes a Government
Accountability Office report on characteristics of homeless veterans
served by the HUD-VASH program. These reports would provide important
information on the success of the program and would assist in
identifying where specific improvements should be made.
Draft Discussion, Student Veteran Debt Relief Act of 2024
The VFW supports this legislation to address student debt due to
overpayment of VA education benefits. If VA overpays a student or
school, the student should not be negatively impacted. VA should make
every effort to recoup the funds while ensuring that the student, if
liable, is offered a payment plan to repay the debt over time. Errors
made by VA should not prevent student veterans from completing their
education courses in a timely manner. Financial stability is critical
while they are studying or training to maximize the potential of their
education leading to stable employment and successful outcomes after
graduation.
Draft Discussion, VA Housing Loan Forever Act of 2023
The VFW membership is currently reviewing this proposal. If a VFW
resolution reaches our national convention this July, we will have more
feedback to inform our position on this proposal.
Draft Discussion, Modernizing the Veterans On-Campus Experience Act of
2024
The VFW supports the intent of this proposed legislation that
specifies the requirement of a bachelor's degree for VA on-campus
counselors. It would also create a limit for counselors to provide
services to no more than twenty-five students at a time.
The VFW is concerned about shortages of both VetSuccess on Campus
(VSOC) counselors and Veteran Readiness and Employment (VR&E)
counselors on college campuses across the country. Since taking on
Chapter 31 casework, we have heard that VSOC staff are experiencing
burnout and have limited time to carry out their VSOC-focused work. We
have also heard that VSOC counselors often work with forty or more
students at a time, so capping the number of veterans they serve may
not be feasible or helpful. We agree that lowering the education
requirement from a master's degree to a bachelor's degree could help
increase the amount of applicants for these important jobs. We would
argue that keeping this requirement flexible could also increase the
demand for these positions as well as the potential to retain the right
staff who would not be easily tempted to leave for other types of work.
Information Required by Rule XI2(g)(4) of the House of Representatives
Pursuant to Rule XI2(g)(4) of the House of Representatives, the VFW has
not received any Federal grants in Fiscal Year 2024, nor has it
received any Federal grants in the two previous Fiscal Years.
The VFW has not received payments or contracts from any foreign
governments in the current year or preceding two calendar years.
Prepared Statement of National Guard Association of the United States
Chairman Bost, Ranking Member Takano, and distinguished members of
the House Committee on Veterans' Affairs, on behalf of the almost
45,000 members of the National Guard Association of the United States
and the nearly 450,000 Soldiers and Airmen of the National Guard, we
appreciate this opportunity to submit a statement for record. We are
deeply grateful for the work of this committee and your staff members.
Your tireless dedication toward improving the lives of veterans has led
to substantial policy change with lasting impact. We stand together
with you all to defend those who protect and defend our Nation.
Specifically, we would like to highlight three bills that improve
servicemembers education benefits.
H.R. 7543, The GRAD Act
As we celebrate the 80th anniversary of the GI Bill this year, we
reflect on the incredible impact it has made on generations of
servicemembers. When a servicemember steps up to enlist in the
military, they commit to the security of our Nation. In return, we
commit to their future by providing education benefits. What better way
to honor the spirit of this monumental policy than by extending it to
cover all military service for the Guard and Reserve. While members of
the Reserve Component maintain the same level of daily preparedness as
the Active Component, they do not receive the same benefits for the
same service. This inequity must be corrected.
We ask for full consideration and support of H.R. 7543, the Guard
and Reserve GI Bill Parity Act (GRAD Act). We have been working on this
effort for several congresses with your committee and this year's
language is the ideal approach, covering all title 32 service. As
negotiations continue, we express the importance to cover all Annual
Training (AT) and Inactive Duty Training (IDT). A day in uniform is a
day in service to this country and should count toward education
benefits.
H.R. 8607
Inflation has caused costs to skyrocket across all markets and
books and supplies for college have been no different. According to the
Bureau of Labor Statistics, between 2006 and 2016 college textbook
prices increased by 88 percent. The stipend of $1000 no longer covers
the yearly expenses that it once did. Raising this stipend and linking
it to the Consumer Price Index is the right move and ensures equitable
reimbursements well into the future. We fully support this effort to
modernize this benefit and bring it into the 21st century.
H.R. 8627, Student Veteran Debt Relief Act of 2024
Last, we support this effort to put limitations on establishing a
statute of limitations for the Department of Veterans Affairs to recoup
any overpayments that have been made. We believe a 10-year window is
more than adequate for the government to acknowledge any payment
errors. Often, the individual has no idea the overpayment was even
made. Servicemembers should not have to live in fear of whether or not
the government is someday going to come to them for a repayment. This
is a common sense correction that protects veterans.
Conclusion:
I thank you again for taking up these critical issues and for
allowing NGAUS to submit this statement. These efforts will provide
even more servicemembers with much needed benefits and breakdown
barriers to education. These policies truly make a difference in the
lives of our Guardsmen and their families. I look forward to continuing
our work together and sincerely appreciate the steadfast leadership
from the members and their staffers in advocating for the National
Guard.
Prepared Statement of Reserve Organization of America
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Prepared Statement of National Alliance to End Homelessness
The National Alliance to End Homelessness (``the Alliance''), which
is a nonpartisan, nonprofit, mission-driven organization committed to
preventing and ending homelessness, thanks Chairman Van Orden, Ranking
Member Levin, and other distinguished members of the House Committee on
Veteran Affairs Subcommittee on Economic Opportunity, for including in
today's hearing the End Veteran Homelessness Act of 2024 (H.R. 8560),
which was recently introduced by Representatives Takano, Waters, and
Levin. The Alliance testified before this Subcommittee on March 16,
2022, to discuss, among other things, an earlier draft of this bill.
The Alliance appreciates the extensive consultation the sponsors have
undertaken with Veterans, homeless services providers, homelessness
groups, and veteran groups in drafting this legislation.
The Alliance is pleased to endorse the End Veteran Homelessness Act
because it will update the HUD-VASH program, which has ended
homelessness for thousands of Veterans with severe disabilities and has
become a model for homeless services programs. We believe the
legislation would allow HUD-VASH to continue to serve homeless Veterans
with the most acute needs with both housing assistance and wraparound
services, but also permit the program to use more vouchers more quickly
and thus safely and securely house more homeless Veterans.
The HUD-VASH program has been one of the most important tools
driving the reduction in homelessness among Veterans. It provides deep
rent subsidies so that participants can afford housing no matter how
low their incomes; along with intensive case management to ensure that
participants can access the full range of healthcare, employment, and
other services available through VA and other means.
This intervention model, known generically as permanent supportive
housing (PSH), has been demonstrated in numerous studies to achieve
excellent results, ending homelessness for people who most would be
ready to give up on; reducing bad outcomes, including incarceration and
death; and saving money for a range of systems, particularly
healthcare.
HUD-VASH's PSH model has the greatest positive impact when used for
people with the most severe problems. Relative to other homelessness
interventions like rapid re-housing, it is an expensive model; but by
stabilizing the housing and lives of people with severe physical and
behavioral health issues who have been homeless for years, it vastly
improves their lives, while saving money for the government, through
reductions in spending on jails, shelters, emergency rooms,
hospitalizations, and commitments to mental health facilities. There
are other effective alternatives for homeless Veterans with less acute
needs. However, for Veterans with severe disabilities, nothing works
like HUD-VASH.
The concept of ``chronic homelessness'' has been developed largely
to articulate which people are the appropriate participants in PSH, and
VA has largely targeted HUD-VASH to these Veterans: those with severe
disabilities, who have been homeless in shelters or unsheltered
situations for at least a year. This targeting has been a large part of
the cause for reductions in Veterans' homelessness. Decades of research
show that when there is insufficient funding to assist everyone who
needs help securing housing, reductions in homelessness are maximized
by providing scarce housing resources to those who are already homeless
and have been homeless for the longest time, since they are least
likely to escape homelessness without help.
The progress on Veterans' homelessness since 2008 has meant that
some communities have essentially ended chronic homelessness among
Veterans. At the same time, however, the most recent Point-in-Time
count indicates there are 38,000 homeless Veterans on any given night
and that veteran homelessness increased by more than 7 percent in 2023
because of the longstanding but worsening crisis in affordable housing.
Moreover, 30,000 HUD-VASH vouchers are not being used. Clearly, the
time has come to expand the eligibility for HUD-VASH in order to serve
more homeless Veterans--but without allowing any reduction in the
program's commitment to serve chronically homeless Veterans. The
Alliance believes that The End Veteran Homelessness Act allows the HUD-
VASH program to successfully make this transition, using existing
resources more economically to safely and securely house more homeless
Veterans.
The legislation ensures HUD-VASH stays true to its mission by
prioritizing for case management ``vulnerable homeless Veterans,
including Veterans who are homeless and who have disabilities
(including chronic mental illness, chronic substance abuse disorders,
or chronic physical disabilities''.
However, the legislation would also allow for unused HUD-VASH
vouchers to be used to house other Veterans who are homeless or at
great risk of homelessness but currently ineligible for the program,
including the elderly or heads of family with very low incomes; as well
as Veterans ``receiving assistance under another Federal housing
assistance program'', which frees up those resources to be used by non-
Veterans.
Moreover, the legislation also endows HUD-VASH vouchers with
special incentives that will allow them to be leased up more quickly.
These incentives are inspired by Emergency Housing Vouchers, which were
temporarily made available to communities in the early 2020's and they
were generally successful because of the rapidity with which these
vouchers housed people experiencing homelessness, even in tight rental
markets, thanks in large part to the flexible funding provided to
Public Housing Authorities for landlord incentives, security deposits,
and housing navigation.
The End Veteran Homelessness Act would make better use of HUD
resources, ensure that HUD-VASH continues to prioritize homeless
Veterans with the greatest needs, while allowing the program to serve
additional homeless Veterans with vouchers that will be leased up
faster than ever--that's why the Alliance has endorsed this
legislation. If the Committee has any questions about our views of the
End Veteran Homelessness Act, please contact the Alliance's John
Threlkeld ([email protected]).
Prepared Statement of Enlisted Association of the National Guard of the
United States
H.R. 7543, the Guard and Reserve GI Bill Parity Act of 2024
``The Citizen Soldiers and Airmen of the National Guard daily serve
our Nation, both at home and abroad. Every time they put on the
military uniform, they represent dedication and loyalty to America. The
GI Bill Parity Act represents gratitude for the commitment and
sacrifice that these men and women exemplify in their service. Ensuring
that the National Guard receives the appropriate credit for the
education benefits that they enlisted for every time they represent
this Nation is more than just keeping a promise and saying thank you,
it is giving each of them the chance to accomplish goals, reach
potentials, and be their best outside of the uniform. The Enlisted
Association of the National Guard of the United States is proud of this
legislation, along with all the work of the committee, that continues
to highlight the National Guard, our service members, the families of
the Guard, and the importance of ensuring we have the best trained and
qualified military in the world.''
Enlisted Association of the National Guard of the United States
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