February 17, 2026
Mr. Levin (for himself and Mr. Moylan) introduced the following bill; which was referred to the Committee on Veterans' Affairs
To amend title 38, United States Code, to refund the amount of fees for a housing loans guaranteed by the Secretary of Veterans Affairs for certain veterans with pending disability claims, and for other purposes.
Section 1. Short title
This Act may be cited as the Veterans Assistance for Loan Origination Relief Act
or the VALOR Act
.
Sec. 2. Housing loan fees: clarification on overpayments and refunds for certain veterans with pending disability claims
Section 3729 of title 38, United States Code, is amended—
(1)
in subsection (c), by adding at the end the following new paragraph:
(3)
A fee collected from a person in violation of paragraph (1) shall be treated as an overpayment. In the event that the Secretary collects a fee from a person in violation of paragraph (1), the Secretary shall—
(A)
refund the amount of the fee to the person; or
(B)
in the case of a fee so collected that was paid as part of a loan, credit the amount of the fee to the loan.; and
(2)
by adding at the end the following new subsection:
(d) Treatment of veterans with pending disability claims
In the case of a veteran who, as of the date on which the veteran applies for a housing loan guaranteed, insured, or made under this chapter, has submitted a claim for disability compensation under the laws administered by the Secretary or a notice of intent to file such a claim but has not received a decision with respect to the claim, a fee shall be collected from such veteran under subsection (a). If such claim for disability compensation is approved, and the veteran receives disability compensation pursuant to that claim, after the date on which the veteran pays such fee, the Secretary shall reimburse the veteran the amount of the fee.