To amend title 38, United States Code, to increase the amount of the loan guaranty for loans for the purchase or construction of homes.

Summary: Increases from $46,000 to $50,750 the amount of the loan guaranty by the Department of Veterans Affairs for loans to qualifying veterans for the purchase or construction of homes. 
Authorizes the Secretary of Veterans Affairs to provide financial assistance to veterans for the purpose of avoiding foreclosure on a mortgage loan made and guaranteed by the Department.  Provides conditions for such assistance.  Allows the Secretary to make more than one loan to a veteran, but limits the per-veteran total to $10,000.  Requires repayment of all such financial assistance provided. 
Makes a technical correction relating to the financing of discount points for certain veterans' loans. 
Deletes the requirement that adjustments in adjustable rate mortgages guaranteed to veterans by the Department occur on the anniversary of the date on which the loan was closed. 
Provides a $150 cemetery plot allowance, payable to a State or appropriate political subdivision, in the case of a veteran who is eligible for burial in a national cemetery and is buried in a cemetery used solely for the burial of persons eligible for burial in national cemeteries and owned by a State or its political subdivision. 
Increases the amount authorized to be paid by the Secretary to a State for establishing, expanding, or improving veterans' cemeteries owned by such State from 50 to 65 percent of the total value and cost of such construction or improvements.  Extends the authorization of appropriations for such program through FY 1999. 
Amends the Homeless Veterans Comprehensive Service Programs Act of 1992 to delete a provision which limits grant funds provided under such Act to 65 percent of the estimated cost of expanding and improving the provision of Department benefits and services to homeless veterans.

SECTION 1. INCREASE IN AMOUNT OF LOAN GUARANTY FOR LOANS FOR THE 
              PURCHASE OR CONSTRUCTION OF HOMES.

    Subparagraphs (A)(i)(IV) and (B) of section 3703(a)(1) of title 38, 
United States Code, are each amended by striking out ``$46,000'' and 
inserting in lieu thereof ``$50,750''.

SEC. 2. MORTGAGE PAYMENT ASSISTANCE TO AVOID FORECLOSURE OF HOME LOANS 
              GUARANTEED UNDER TITLE 38.

    (a) In General.--(1) Chapter 37 of title 38, United States Code, is 
amended by inserting after section 3714 the following new section:
``Sec. 3715. Loans to refinance delinquent indebtedness
    ``(a)(1) The Secretary may, at the Secretary's option, provide 
assistance to a veteran under this section for the purpose of avoiding 
the foreclosure of a housing loan made to that veteran and guaranteed 
by the Secretary under section 3710 or 3712 of this title (hereinafter 
in this section referred to as a `primary loan').
    ``(2) Assistance under this section shall be in the form of a loan 
to the veteran. Such assistance may be provided only if--
            ``(A) the dwelling that secures the primary loan is the 
        current residence of the veteran and is occupied by the veteran 
        as the veteran's home;
            ``(B) the veteran is delinquent in payments on that primary 
        loan and the holder has submitted the notice of default as 
        required by section 3732(a)(2) and is unwilling to grant 
        forbearance;
            ``(C) the veteran has lost employment or has encountered 
        circumstances beyond his control which affect his ability to 
        maintain mortgage payments; and
            ``(D) the Secretary determines that there is a reasonable 
        prospect that the veteran will be able to resume payment on the 
        primary loan within six months after receiving assistance under 
        this section.
    ``(3) For the purposes of this section, the term `veteran' includes 
the surviving spouse of a veteran if the surviving spouse was a co-
obligor of the primary loan.
    ``(b)(1) A loan under this section shall be advanced to the holder 
of the primary loan. The amount of the loan under this subsection shall 
first be applied to the amount delinquent on the loan guaranteed under 
this chapter including any amount delinquent on taxes, assessments, 
hazard insurance, and late charges required by the holder to be 
included in the veteran's monthly payment on the mortgage. Any 
remaining amount of such loan shall be retained by the holder and shall 
be applied to future payments, including taxes, assessments, and hazard 
insurance, due on the loan and unpaid (in whole or in part) on the date 
the payment becomes due.
    ``(2) The Secretary may make more than one loan under this section 
to a veteran. The total amount of loans under this section to any 
veteran may not exceed $10,000.
    ``(c) A loan under this section--
            ``(1) shall bear no interest until the date on which 
        payments on the primary loan (including amounts for taxes, 
        assessments, hazard insurance, and late charges required by the 
        holder to be included in the veteran's monthly payment on the 
        mortgage) are current, and thereafter shall bear interest at a 
        rate determined by the Secretary;
            ``(2) shall be secured by a lien on the property securing 
        the primary loan and by such other security as the Secretary 
        may require; and
            ``(3) shall be subject to such additional terms and 
        conditions as the Secretary may require.
    ``(d) As a condition of receiving a loan under this section the 
veteran shall execute an agreement, in such form as the Secretary may 
prescribe, to repay the loan within a reasonable period of time, as 
determined by the Secretary, not to exceed 15 years from the date on 
which such loan is made. If the Secretary determines that the veteran 
has sufficient income or other resources to do so, the Secretary may 
require the veteran to make partial payments on the primary loan 
guaranteed under this chapter during the period the holder of that loan 
is applying the amount of the loan under this section to payments 
becoming due on the primary loan.
    ``(e) Notwithstanding any other law, the Secretary may employ 
attorneys to bring suit to collect any amount of a loan under this 
section on which the veteran to whom the loan is made is in default.
    ``(f) The Secretary's decisions on any question of law or fact 
regarding assistance under this section, including whether or not to 
grant such assistance and the terms and conditions under which such 
assistance is granted or not granted, shall be final and conclusive, 
and no other official or any court of the United States shall have 
power or jurisdiction to review any such decision by an action in the 
nature of mandamus or otherwise.
    ``(g) A loan under this section shall be made from the fund 
established under section 3724 or 3725 of this title that is available 
with respect to the primary loan in connection with which the loan is 
made under this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3714 the 
following new item:

``3715. Loans to refinance delinquent indebtedness.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect at the end of the 60-day period beginning on the date of 
the enactment of this Act.

SEC. 3. FINANCING OF DISCOUNT POINTS.

    Section 3703(c)(4)(B) of title 38, United States Code, is amended 
in the second sentence by striking out ``Discount'' and inserting in 
lieu thereof ``Except in the case of a loan for the purpose specified 
in section 3710(a)(8), 3710(b)(7), or section 3712(a)(1)(F) of this 
title, discount''.

SEC. 4. RATE ADJUSTMENTS FOR ADJUSTABLE RATE MORTGAGES.

    Section 3707(b)(2) of title 38, United States Code, is amended by 
striking out ``on the anniversary of the date on which the loan was 
closed''.

SEC. 5. CEMETERY PLOT ALLOWANCE FOR VETERANS ELIGIBLE FOR BURIAL IN A 
              NATIONAL CEMETERY BUT INTERRED IN A STATE VETERANS 
              CEMETERY.

    Section 2303 of title 38, United States Code, is amended by adding 
at the end thereof the following:
    ``(c) In addition to the benefits provided for under section 2302 
of this title and subsection (a) of this section, in the case of a 
veteran who--
            ``(1) is eligible for burial in a national cemetery under 
        section 2402 of this title, and
            ``(2) is buried (without charge for the cost of a plot or 
        interment) in a cemetery, or a section of a cemetery, that (A) 
        is used solely for the interment of persons eligible for burial 
        in a national cemetery, and (B) is owned by a State or by an 
        agency or political subdivision of a State,
the Secretary shall pay to such State, agency, or political subdivision 
the sum of $150 as a plot or interment allowance for such veteran.''.

SEC. 6. INCREASE IN FEDERAL AID TO STATES VETERANS' CEMETERIES.

    Paragraphs (1) and (2) of section 2408(b) are each amended by 
striking out ``50 percent'' and inserting in lieu thereof ``65 
percent.''.

SEC. 7. EXTENSION OF AUTHORIZATION OF APPROPRIATIONS FOR STATE CEMETERY 
              GRANT PROGRAM.

    Paragraph (2) of section 2408(a) of title 38, United States Code, 
is amended by striking out ``nine'' and inserting in lieu thereof 
``fourteen''.

SEC. 8. REMOVAL OF FUNDING REQUIREMENT OF HOMELESS VETERANS 
              COMPREHENSIVE SERVICE PROGRAMS ACT OF 1992.

    Section 12 of the Homeless Veterans Comprehensive Service Programs 
Act of 1992 (38 U.S.C. 7721 note) is amended by striking out the second 
sentence.

            Passed the House of Representatives September 21, 1993.

            Attest:

                                           DONNALD K. ANDERSON,

                                                                 Clerk.