NMP - November 2019 - 56

special focus on A SALUTE TO THE HEROES OF HOMEOWNERSHIP a special focus on A

The Ever-Changing and Evolving VA Loan
By Brian Daily

or veterans of the
United States military
branches, there are
many benefits that are
offered to the men
and woman who
serve. The Veteran Administration
mortgage loan (VA loan) is an
entitlement our veterans earn. A VA
loan is mortgage loan that is
guaranteed and backed by the
United State Department of
Veterans Affairs. The purpose of a
VA loan is to provide mortgage
financing to eligible veterans. The
"guarantee" aspect of the program
provides confidence for lenders to
offer the program, eliminating the
fear and risk of a loss. The VA does
not make the loan themselves, they
are guaranteeing the performance
of that loan for approved lenders.
Back in 1944, under the
Serviceman's Readjustment Act,
also known as the GI Bill of Rights,
the VA mortgage loan was
established. The intent and
purpose of the original VA loan was
to help returning veterans from
WWII resettle and readjust to
civilian life. To create this path of
normality, going from being in
combat to being a civilian,
homeownership was seen as key
requirement to make the
adjustment quickly. The original VA
loan helped, but it was restrictive in
terms of the amount of money a
veteran could borrow, eligibility
timelines, the maximum length the
loan could be repaid and other
restrictive characteristics.
For the most part, the original VA
loan requirements did not change
much until 1970. President Richard
Nixon signed into law the Veterans
Housing Act of 1970. This law was
designed to revamp the historic VA
loan platform, enhance the benefits
offered to Veterans, and to meet
past market housing demands.
With veterans hitting an all-time
high in population count, due to
World War II, the Korean War and
the ongoing Vietnam War, changes
needed to be made to the VA
program. Key changes, such as
eliminating an expiration date for
VA benefits and creating a
refinancing opportunity for VA
loans, made the program more
attractive to veterans. The Veteran
Housing Act provided a complete
overhaul of the VA loan platform
and created the starting point for

F

NOVEMBER 2019 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

56

"The United States military is reflective of society shifts and changes. These
measureable demographic shifts will require the VA to look deeply at its
eligibility requirements, types of homes and the cultures that it supports."

future needed changes.
Additional changes in the 1980's
and 1990's, for the most part, give
us the VA loan program we have
today. Loan amounts are
consistently changing to reflect
current housing costs and other
adjustments are made as needed to
manage risk and borrower impact.
The loan attractiveness is much
more conducive to veterans today,
versus decades ago.
The Veteran Administration is
part of the U.S. Department of
Veterans Affairs. The Veterans
Affairs Department is a federal
cabinet-level agency with advice
and consent of the Senate. One of
the challenges in the near future, as
it relates to demographic changes,
is fewer members of Congress have
military experience.
With a lack of first-hand
understanding by a government
whose military ranks are
decreasing, this could create
unintended consequences for the
VA who needs to enhance its
mortgage programs to meet
demographic shifts. It will be vital
for the mortgage professional who
participates in VA lending to begin a

grass roots effort of education and
awareness for our government
leaders who have influence and
decision making capabilities as to
how the VA will perform in the
future regarding its mortgage
programs.
Looking into the future, there is
veteran demographic changes that
will require the VA to adjust
accordingly. Today, 7.6 percent or
18.8 million veterans make up the
entire U.S. population. This is down
from 18 percent of the overall
population in 1980. As the U.S.
population ages, the number of
veterans are expected to decrease
significantly. VA projections

estimate the number of veterans will
decline in coming decades. By
2045, the VA estimates there will be
a total of 12 million U.S. veterans.
That's a 40 percent decrease
versus today's numbers.
Diversity changes within the
military ranks will create different
housing needs versus today's
housing make up. The gender shift
will change drastically. By 2045, the
number of female veterans is
forecasted to increase to 18
percent of the overall veteran count,
versus nine percent today. Racially
and ethnically forecasted changes
will be considerable as well. NonHispanic veterans are expected to
decrease from 78 percent to 63
percent. Black veterans are
projected to rise from 12 percent to
16 percent. Hispanic military
veterans are projected to increase
from seven percent today to 13
percent in 2045.
Diverse changing demographics
are a part of everyday life in the
United States. The United States
military is reflective of society shifts
and changes. These measureable
demographic shifts will require the
VA to look deeply at its eligibility
requirements, types of homes and
the cultures that it supports.
Recent surveys have shown that
Americans favorably approve
spending more money on veteran's
services, which include housing
entitlements. Those surveyed noted
increased spending for veterans
would be permitted if they were
approving the federal budget. This
overwhelming support provides
opportunity for the VA to continually
enhance and improve VA loans to
meet the constantly changing
demographics and the markets they
serve. Enhancements is what has,
and will continue to be, the driving
force behind veterans using VA
loans to meet their housing needs.

Brian Daily is SVP of production at Mountain West Financial
Inc. Brian is responsible for the overall management,
designing and implementing growth strategies, and creating
world-class experiences for its clients within the wholesale
channel. As a proven business strategic designer and
impactful sales leader, he provides keen and candid insight
to critical projects and initiatives the produce results. Brian
has more than 30 years of experience in the mortgage
banking sector, covering a wide range of responsibilities.
Within the mortgage industry, he has managed, built and
implemented strategies pertaining to origination channel
rollout, mass national market expansion, B2B customer
experience feedback platforms, to name a few areas.


http://www.NationalMortgageProfessional.com

NMP - November 2019

Table of Contents for the Digital Edition of NMP - November 2019

Contents
NMP - November 2019 - CT1
NMP - November 2019 - CT2
NMP - November 2019 - Cover1
NMP - November 2019 - Cover2
NMP - November 2019 - 1
NMP - November 2019 - Contents
NMP - November 2019 - 3
NMP - November 2019 - 4
NMP - November 2019 - 5
NMP - November 2019 - 6
NMP - November 2019 - 7
NMP - November 2019 - 8
NMP - November 2019 - 9
NMP - November 2019 - 10
NMP - November 2019 - 11
NMP - November 2019 - 12
NMP - November 2019 - 13
NMP - November 2019 - 14
NMP - November 2019 - 15
NMP - November 2019 - 16
NMP - November 2019 - 17
NMP - November 2019 - 18
NMP - November 2019 - 19
NMP - November 2019 - 20
NMP - November 2019 - 21
NMP - November 2019 - 22
NMP - November 2019 - 23
NMP - November 2019 - 24
NMP - November 2019 - 25
NMP - November 2019 - 26
NMP - November 2019 - 27
NMP - November 2019 - 28
NMP - November 2019 - 29
NMP - November 2019 - 30
NMP - November 2019 - 31
NMP - November 2019 - 32
NMP - November 2019 - 33
NMP - November 2019 - 34
NMP - November 2019 - 35
NMP - November 2019 - 36
NMP - November 2019 - 37
NMP - November 2019 - 38
NMP - November 2019 - 39
NMP - November 2019 - 40
NMP - November 2019 - 41
NMP - November 2019 - 42
NMP - November 2019 - 43
NMP - November 2019 - 44
NMP - November 2019 - 45
NMP - November 2019 - 46
NMP - November 2019 - 47
NMP - November 2019 - 48
NMP - November 2019 - 49
NMP - November 2019 - 50
NMP - November 2019 - 51
NMP - November 2019 - 52
NMP - November 2019 - 53
NMP - November 2019 - 54
NMP - November 2019 - 55
NMP - November 2019 - 56
NMP - November 2019 - 57
NMP - November 2019 - 58
NMP - November 2019 - 59
NMP - November 2019 - 60
NMP - November 2019 - 61
NMP - November 2019 - 62
NMP - November 2019 - 63
NMP - November 2019 - 64
NMP - November 2019 - 65
NMP - November 2019 - 66
NMP - November 2019 - 67
NMP - November 2019 - 68
NMP - November 2019 - 69
NMP - November 2019 - 70
NMP - November 2019 - 71
NMP - November 2019 - 72
NMP - November 2019 - 73
NMP - November 2019 - 74
NMP - November 2019 - 75
NMP - November 2019 - 76
NMP - November 2019 - 77
NMP - November 2019 - 78
NMP - November 2019 - 79
NMP - November 2019 - 80
NMP - November 2019 - Cover3
NMP - November 2019 - Cover4
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201912
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201911
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201910
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201909
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201908
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201907
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201906
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201905
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201904
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201903
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201902
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201901
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201812
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201811
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201810
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201809
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201808
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201807
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201806
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201805
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201804
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201803
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201802
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201801
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201712
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201711
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201710
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201709
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201708
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201707
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201706
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201705
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201704
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201703
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201702
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201701
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201612
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201611
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201610
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201609
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201608
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201607
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201604
http://www.nxtbookMEDIA.com