H.R. 3694 — VALID Act of 2025

This section revises the FHA informed consumer choice disclosure notice required for section 203 mortgages under the National Housing Act to require, in addition to the estimated principal and interest payment for a conventional loan at a specified loan-to-value ratio, the estimated payment for a comparable VA loan (i.e., guaranteed or insured under chapter 37 of title 38, U.S. Code) assuming prevailing interest rates. It includes a rule of construction clarifying that FHA lenders are not required to determine a prospective borrower's eligibility for any alternative loans referenced in the notice.

This section requires the Director of the Federal Housing Finance Agency (FHFA) to issue a rule within six months of enactment directing Fannie Mae and Freddie Mac (i.e., the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation) to include a military service question on the Uniform Residential Loan Application above the signature line.