H.R. 4657: Veteran Home Energy Savings Act

117th Congress

To amend title 38, United States Code, to improve the accuracy of mortgage underwriting for home loans guaranteed by the Department of Veterans Affairs by ensuring that energy costs are included in the underwriting process, and for other purposes.

Sponsor: Rep. Mike Levin — D — CA

Requires the Department of Veterans Affairs (VA) to prescribe regulations concerning how energy-efficiency reports are prepared and how lenders should consider savings from energy efficiency features when evaluating income. The VA provides guarantees to lenders for eligible borrowers to obtain better loan terms—such as lower interest rates or smaller down payments—when purchasing, constructing, or refinancing a home. VA typically pays lenders up to 25 percent of the outstanding mortgage balance if a borrower’s home is foreclosed upon. Such payments, net of fees and recoveries, comprise the subsidy cost for VA loan guarantees, which is paid from mandatory appropriations; hence, changing the subsidy cost affects direct spending. To obtain a loan guarantee from VA, lenders must determine that each applicant satisfies the department’s underwriting standards, including verifying that their income will be sufficient to repay the mortgage. H.R. 4657 would permit lenders to consider expected cost savings documented in an energy efficiency report prepared for a home in determining the sufficiency of an applicant’s income.

View the full vote history of this bill on GovTrack.us.