Statements on Introduced Bills and Joint Resolution

Floor Speech

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Ms. HIRONO. M. President, in 2018, Hawaii's Kilauea Volcano erupted, destroying upwards of 700 homes, including a home purchased by a veteran using the VA Home Loan Guaranty Program. When this veteran went to replace the home he had lost by once again using the Home Loan Guaranty Program, he found that he would be forced to pay significantly higher fees for using the program a second time.

Our Nation's veterans should not be penalized for losing their homes to natural disasters and it is for this reason that I come to the floor today to introduce the Veteran Home Loan Disaster Recovery Act of 2020.

Congress has established a variety of programs in pursuit of both thanking our Nation's veterans and ensuring that they are able to live comfortable lives after their service has ended. One of these programs is the VA Home Loan Guaranty program, which provides eligible veterans the opportunity to access mortgages backed by the Department of Veterans Affairs. Under the program the VA guarantees a portion of a home loan from a private lender allowing the veteran borrower to receive favorable mortgage terms.

Participants in this program are required to pay a funding fee in place of closing cost and that fee increases based on various factors, including whether this is a veteran's first time using the program or if they have previously had a VA Home Loan. For those who have used the loan before, the fee is higher, regardless of the circumstances that led to their needing to purchase a home through the program, including if their previous home was destroyed by a natural disaster.

The Veteran Home Loan Disaster Recovery Act of 2020 would exempt program participants from the subsequent loan funding fee increase if they lost their first home to a natural disaster, allowing them to access a lower rate as if they were a first-time participant in the program.

According to the Federal Emergency Management Agency (FEMA), in 2019, there were 101 Presidentially-declared disasters across the Nation. So far in 2020, there have been 92 major disaster declarations alone. Right now, wildfires rage in different parts of the Nation, and we are in the midst of hurricane season in both the Atlantic and Pacific Oceans.

As we continue to experience raging wildfires, volcanic eruptions, and massive hurricanes, it is critical that we ensure that we work to limit the ripple effects from these disasters. Giving veterans the ability to replace homes lost through no fault of their own is one step in that direction.

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