Scott sponsors bill to help veterans build credit for home loans

U.S. Sen. Tim Scott (R-SC) on May 26 sponsored a bipartisan bill that would ensure United States military veterans and service members have access to credit through more accurate and inclusive credit scoring systems that would allow them to obtain home loans.

Sen. Scott introduced the Building Credit Access for Veterans Act of 2021, S. 1838, with original cosponsor U.S. Sen. Richard Blumenthal (D-CT) to require the U.S. Secretary of Veterans Affairs to carry out a pilot program on using alternative credit scoring information for veterans and service members of the Armed Forces, according to the text of the bill.

“America’s veterans should not have to worry whether they’ll have a roof over their heads when they come back from serving our country,” said Sen. Scott. “But too often, limited access to credit stands in the way of reliable housing for many of our nation’s heroes. I’m proud to introduce this bill to help right that wrong.”

If enacted, S. 1838 would streamline and formalize alternative methods of credit scoring for veterans and would require a report to Congress on how many veterans participate in the program, as well as how they are being affected, according to a bill summary provided by Sen. Scott’s office. 

The American Legion, VantageScore Solutions, and the Housing Policy Council are among the entities that recently endorsed the bill, which has been referred for consideration to the U.S. Senate Veterans’ Affairs Committee.

“Lower interest rates and closing costs, the possibility of no down payment, and no penalty for paying off the loan early are just some of the advantages of a VA home loan. The American Legion is proud to support legislation that expands access to these benefits,” said Chanin Nuntavong, executive director of government and veteran affairs for The American Legion.