The VALOR Act would waive housing loan fees for veterans with service-connected disabilities who applied for a VA-guaranteed home loan before receiving their official disability rating from the Department of Veterans Affairs. Currently, these veterans must pay an origination fee even though they may later qualify for a fee waiver once rated disabled. The bill also requires the VA to refund any fees already collected from eligible veterans who request reimbursement, with refunds going either directly to the veteran or applied as a principal reduction on their active loan. The legislation affects veterans who obtained VA loans before receiving their disability determinations and provides relief for those who would have qualified for a fee waiver under the new rules. No specific funding amount or implementation timeline is specified in the bill text.