Congress Showing Support for Veterans
After some very publicized neglect when it comes to Veterans issues, such as the omission of Veterans Loans from the Economic Stimulus Act of 2008, Congress is taking steps to improve the lives of Veterans. One such effort, the Helping Veterans Keep Their Homes Act of 2008 (HR 4884), is being led by Representative Bob Filner (D-CA). Filner is the chairman of the House Committee on Veterans’ Affairs.
Although the rate of VA Loans going into foreclosure remains lower than the national average, many Veterans are still in danger of losing their homes. The bill aims to alter the guidelines for refinancing a VA Loan by removing the requirement that a Veteran must have 10% equity in his or her home to refinance. Another proposed change would lower the amount of the funding fee for VA Home Loans. With the exception of fee exemptions related to disabled and deceased Veterans, the fee currently ranges from 0.5% to 3.3% of the total loan amount. If the bill passes, the funding fee would be changed to a flat 1% of the total loan amount for all borrowers. VA Loan Limits would also be raised from $417,000 to $730,000.
Another bill seeking to aid Veterans is the Heroes Earning Assistance and Relief Tax Act of 2008. The bill passed in the House and Senate and was sent to President Bush on June 6. The bill aims to financially aid Military personnel called to duty by allowing for penalty-free distributions from their 401(k)s. It also allows individuals who have flexible spending healthcare plans to cash in on their unused balances. Analysts expect the president to sign the bill into law.
Congress is also taking action to update the Montgomery GI Bill for the 21st century. The Post-9/11 Veterans Educational Assistance Act of 2007, sponsored by Sen. Jim Webb (D-VA), would provide more money for Veterans to attend college and extend the time Veterans have to use their educational benefits from ten to fifteen years.
