WASHINGTON – Rep. Shelley Moore Capito (R-WV) has introduced legislation that would address an oversight in the recently-enacted Economic Stimulus Act of 2008 by giving veterans increased access to federally guaranteed loans through the Department of Veterans Affairs (VA).   

“While the stimulus package made needed adjustments to federally backed loan limits, it failed to provide similar support to veterans who rely on programs administered by the Department of Veterans Affairs,” noted Capito. 

“The increased access to federally backed mortgages included in the original package was designed to help struggling homeowners refinance and provide overall stability to the market.  Given the benefit of these reforms, it’s only appropriate that we give our veterans the same tools.”

Capito’s legislation would rectify an omission of language in the economic stimulus package and provide for a temporary increase in loan limits under the VA home loan guarantee program.  Without the necessary language, the VA’s program would be excluded from the expanded conforming loan limits enacted with the stimulus package.

Increased limits for the VA home loan guarantee program would mirror the temporary increases in loan limits for mortgages backed by the Federal Housing Administration (FHA) and Government Sponsored Enterprises (GSE) such as Fannie Mae and Freddie Mac. 

The VA-administered program guarantees 25 percent of the GSE conforming loan limit.

“We have an opportunity to fix what amounts to an unintended oversight,” said Capito.  “This should be a no-brainer.”

Capito is the Ranking Member of the House Financial Services Subcommittee on Housing and Community Opportunity.

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