I 
118TH CONGRESS 
1ST SESSION H. R. 1266 
To require the Secretary of Veterans Affairs to carry out a pilot program 
on using alternative credit scoring information for veterans and members 
of the Armed Forces, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 28, 2023 
Mr. TIMMONS (for himself and Mr. LEVIN) introduced the following bill; which 
was referred to the Committee on Veterans’ Affairs 
A BILL 
To require the Secretary of Veterans Affairs to carry out 
a pilot program on using alternative credit scoring infor-
mation for veterans and members of the Armed Forces, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Building Credit Access 
for Veterans Act of 2023’’. 
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SEC. 2. DEPARTMENT OF VETERANS AFFAIRS PILOT PRO-
GRAM ON USE OF ALTERNATIVE CREDIT 
SCORING INFORMATION OR CREDIT SCORING 
MODELS. 
(a) PILOT PROGRAM REQUIRED.— 
(1) IN
GENERAL.—Not later than one year 
after the date of the enactment of this Act, the Sec-
retary of Veterans Affairs shall commence carrying 
out a pilot program that will assess the feasibility 
and advisability of— 
(A) using alternative credit scoring infor-
mation or credit scoring models using alter-
native credit scoring methodology for an indi-
vidual described in paragraph (2)— 
(i) to improve the determination of 
creditworthiness of such an individual; and 
(ii) to increase the number of such in-
dividuals who are able to obtain a loan 
guaranteed or insured under chapter 37 of 
title 38, United States Code; and 
(B) in consultation with such entities as 
the Secretary considers appropriate, estab-
lishing criteria for acceptable commercially 
available credit scoring models to be used by 
lenders for the purpose of guaranteeing or in-
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suring a loan under chapter 37 of title 38, 
United States Code. 
(2) INDIVIDUAL DESCRIBED.—An individual de-
scribed in this paragraph is a veteran or a member 
of the Armed Forces who— 
(A) is eligible for a loan under chapter 37 
of title 38, United States Code; and 
(B) has an insufficient credit history for a 
lender or the Secretary to determine the credit-
worthiness of the individual. 
(3) ALTERNATIVE CREDIT SCORING INFORMA-
TION.—Alternative credit scoring information de-
scribed in paragraph (1)(A) may include proof of 
rent, utility, and insurance payment histories, and 
such other information as the Secretary considers 
appropriate. 
(b) VOLUNTARY PARTICIPATION.— 
(1) IN GENERAL.—The Secretary shall ensure 
that any participation in the pilot program is vol-
untary on an opt-in basis for a lender, a borrower, 
and an individual described in subsection (a)(2). 
(2) NOTICE
OF
PARTICIPATION.—Subject to 
paragraph (3), any lender who participates in the 
pilot program shall— 
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(A) notify each individual described in sub-
section (a)(2) who, during the pilot program, 
applies for a loan under chapter 37 of title 38, 
United States Code, from such lender, of the 
lender’s participation in the pilot program; and 
(B) offer such individual the opportunity 
to participate in the pilot program. 
(3) LIMITATION.— 
(A) IN GENERAL.—The Secretary may es-
tablish a limitation on the number of individ-
uals and lenders that may participate in the 
pilot program. 
(B) REPORT.—If the Secretary limits par-
ticipation in the pilot program under subpara-
graph (A), the Secretary shall, not later than 
15 days after establishing such limitation, sub-
mit to Congress a report setting forth the rea-
sons for establishing such limitation. 
(c) APPROVAL OF CREDIT SCORING MODELS.— 
(1) IN GENERAL.—A lender participating in the 
pilot program may not use a credit scoring model 
under subsection (a)(1)(A) until the Secretary has 
reviewed and approved such credit scoring model for 
purposes of the pilot program. 
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