Washington, DC (January 9, 2025) |
Today, the Defense Credit Union Council (DCUC) sent a letter to the Senate Veteran Affairs Committee highlighting critical issues impacting the financial well-being of military personnel, veterans, and their families.
The letter, written by DCUC Chief Advocacy Officer, comes as the Committee evaluates the nomination of Congressman Doug Collins as Secretary of Veterans Affairs. DCUC’s letter reinforces its commitment to serving the financial needs of military and veteran communities while advocating for policies that empower their financial future.
A focal point of the letter was the Veterans Home Loan Program, which faced challenges following the National Association of Realtors’ (NAR) 2024 settlement altering brokerage fee structures. Stverak noted that the policy shift initially disadvantaged veterans using VA loans, as they were previously prohibited from paying buyer-broker fees. In response, the VA updated its policy in August 2024, allowing veterans and eligible beneficiaries to cover reasonable and customary broker fees.
“This policy change is essential to keeping veterans competitive in today’s real estate market,” Stverak says.
DCUC urged the Committee to ensure ongoing oversight of the settlement’s effects on veterans and called for additional rulemaking to protect their access to homeownership.
DCUC’s letter also highlighted the challenges faced by veteran entrepreneurs, particularly due to lending caps that limit support for veteran small businesses. DCUC strongly advocates for the passage of the Veterans Member Business Loan legislation, which would exempt loans to veteran-owned businesses from these restrictions.
“Many veterans start their own businesses after transitioning out of the military but face significant barriers in accessing capital, including higher loan denial rates and insufficient credit histories due to unique challenges like frequent relocations,” wrote Stverak. “Despite some growth in SBA programs, veterans benefit far less than non-veterans, particularly when seeking small loans that commercial banks often cannot cost-effectively underwrite. Credit unions, with their understanding of military life cycle, are well positioned to fill these gaps, and policies like
exempting veteran business loans from lending caps could significantly enhance support for veteran entrepreneurs and their vital role in the economy.”
Preserving the tax-exempt status of credit unions remains a cornerstone of DCUC’s advocacy. Stverak emphasized that this status enables credit unions to provide low-cost loans, financial education, and critical support services to service members and veterans. Over 30% of military personnel and veterans rely on credit unions for essential financial services, making their role in financial stability irreplaceable.
DCUC’s letter also drew attention to the rising tide of financial scams targeting military and veteran populations. According to the latest Federal Trade Commission (FTC) Consumer Sentinel Network report, service members, veterans, and their families suffered nearly $477 million in losses in 2023 due to fraud.
“Last year, a total of 93,735 reports came from service members, veterans, and their families, highlighting fraud schemes that have taken millions from these communities. These military and veteran consumers reported losing nearly $477 million in 2023, with average losses higher than the general population,” said Stverak.
Stverak concluded DCUC’s letter urging the Senate Veterans Affairs Committee to prioritize these issues during the confirmation process for Congressman Collins.
“These matters are critical to the financial security of our Nation’s service members and veterans,” Stverak says. “We trust the Committee will give these matters the attention they deserve during Congressman Collins’ confirmation process.”
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.