IIA

103D CONGRESS

1ST SESSION H. R. 949

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 22 (legislative day, SEPTEMBER 7), 1993

Received; read twice and referred to the Committee on Veterans’ Affairs

AN ACT

To amend title 38, United States Code, to improve the

veterans’ home loan guaranty program and the State

cemetery grants program, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. INCREASE IN AMOUNT OF LOAN GUARANTY

4 FOR LOANS FOR THE PURCHASE OR CON5 STRUCTION OF HOMES.

6 Subparagraphs (A)(i)(IV) and (B) of section

7 3703(a)(1) of title 38, United States Code, are each

8 amended by striking out ‘‘$46,000’’ and inserting in lieu

9 thereof ‘‘$50,750’’.
2

•HR 949 RFS

1 SEC. 2. MORTGAGE PAYMENT ASSISTANCE TO AVOID FORE2 CLOSURE OF HOME LOANS GUARANTEED

3 UNDER TITLE 38.

4 (a) IN GENERAL.—(1) Chapter 37 of title 38, United

5 States Code, is amended by inserting after section 3714

6 the following new section:

7 ‘‘§ 3715. Loans to refinance delinquent indebtedness

8 ‘‘(a)(1) The Secretary may, at the Secretary’s option,

9 provide assistance to a veteran under this section for the

10 purpose of avoiding the foreclosure of a housing loan made

11 to that veteran and guaranteed by the Secretary under

12 section 3710 or 3712 of this title (hereinafter in this sec13 tion referred to as a ‘primary loan’).

14 ‘‘(2) Assistance under this section shall be in the

15 form of a loan to the veteran. Such assistance may be pro16 vided only if—

17 ‘‘(A) the dwelling that secures the primary loan

18 is the current residence of the veteran and is occu19 pied by the veteran as the veteran’s home;

20 ‘‘(B) the veteran is delinquent in payments on

21 that primary loan and the holder has submitted the

22 notice of default as required by section 3732(a)(2)

23 and is unwilling to grant forbearance;

24 ‘‘(C) the veteran has lost employment or has

25 encountered circumstances beyond his control which
3

•HR 949 RFS

1 affect his ability to maintain mortgage payments;

2 and

3 ‘‘(D) the Secretary determines that there is a

4 reasonable prospect that the veteran will be able to

5 resume payment on the primary loan within six

6 months after receiving assistance under this section.

7 ‘‘(3) For the purposes of this section, the term ‘vet8 eran’ includes the surviving spouse of a veteran if the sur9 viving spouse was a co-obligor of the primary loan.

10 ‘‘(b)(1) A loan under this section shall be advanced

11 to the holder of the primary loan. The amount of the loan

12 under this subsection shall first be applied to the amount

13 delinquent on the loan guaranteed under this chapter in14 cluding any amount delinquent on taxes, assessments, haz15 ard insurance, and late charges required by the holder to

16 be included in the veteran’s monthly payment on the mort17 gage. Any remaining amount of such loan shall be retained

18 by the holder and shall be applied to future payments, in19 cluding taxes, assessments, and hazard insurance, due on

20 the loan and unpaid (in whole or in part) on the date the

21 payment becomes due.

22 ‘‘(2) The Secretary may make more than one loan

23 under this section to a veteran. The total amount of loans

24 under this section to any veteran may not exceed $10,000.

25 ‘‘(c) A loan under this section—
4

•HR 949 RFS

1 ‘‘(1) shall bear no interest until the date on

2 which payments on the primary loan (including

3 amounts for taxes, assessments, hazard insurance,

4 and late charges required by the holder to be in5 cluded in the veteran’s monthly payment on the

6 mortgage) are current, and thereafter shall bear in7 terest at a rate determined by the Secretary;

8 ‘‘(2) shall be secured by a lien on the property

9 securing the primary loan and by such other security

10 as the Secretary may require; and

11 ‘‘(3) shall be subject to such additional terms

12 and conditions as the Secretary may require.

13 ‘‘(d) As a condition of receiving a loan under this sec14 tion the veteran shall execute an agreement, in such form

15 as the Secretary may prescribe, to repay the loan within

16 a reasonable period of time, as determined by the Sec17 retary, not to exceed 15 years from the date on which such

18 loan is made. If the Secretary determines that the veteran

19 has sufficient income or other resources to do so, the Sec20 retary may require the veteran to make partial payments

21 on the primary loan guaranteed under this chapter during

22 the period the holder of that loan is applying the amount

23 of the loan under this section to payments becoming due

24 on the primary loan.
5

•HR 949 RFS

1 ‘‘(e) Notwithstanding any other law, the Secretary

2 may employ attorneys to bring suit to collect any amount

3 of a loan under this section on which the veteran to whom

4 the loan is made is in default.

5 ‘‘(f) The Secretary’s decisions on any question of law

6 or fact regarding assistance under this section, including

7 whether or not to grant such assistance and the terms and

8 conditions under which such assistance is granted or not

9 granted, shall be final and conclusive, and no other official

10 or any court of the United States shall have power or ju11 risdiction to review any such decision by an action in the

12 nature of mandamus or otherwise.

13 ‘‘(g) A loan under this section shall be made from

14 the fund established under section 3724 or 3725 of this

15 title that is available with respect to the primary loan in

16 connection with which the loan is made under this sec17 tion.’’.

18 (2) The table of sections at the beginning of such

19 chapter is amended by inserting after the item relating

20 to section 3714 the following new item:

‘‘3715. Loans to refinance delinquent indebtedness.’’.

21 (b) EFFECTIVE DATE.—The amendments made by

22 subsection (a) shall take effect at the end of the 60-day

23 period beginning on the date of the enactment of this Act.
6

•HR 949 RFS

1 SEC. 3. FINANCING OF DISCOUNT POINTS.

2 Section 3703(c)(4)(B) of title 38, United States

3 Code, is amended in the second sentence by striking out

4 ‘‘Discount’’ and inserting in lieu thereof ‘‘Except in the

5 case of a loan for the purpose specified in section

6 3710(a)(8), 3710(b)(7), or section 3712(a)(1)(F) of this

7 title, discount’’.

8 SEC. 4. RATE ADJUSTMENTS FOR ADJUSTABLE RATE

9 MORTGAGES.

10 Section 3707(b)(2) of title 38, United States Code,

11 is amended by striking out ‘‘on the anniversary of the date

12 on which the loan was closed’’.

13 SEC. 5. CEMETERY PLOT ALLOWANCE FOR VETERANS ELI14 GIBLE FOR BURIAL IN A NATIONAL CEME15 TERY BUT INTERRED IN A STATE VETERANS

16 CEMETERY.

17 Section 2303 of title 38, United States Code, is

18 amended by adding at the end thereof the following:

19 ‘‘(c) In addition to the benefits provided for under

20 section 2302 of this title and subsection (a) of this section,

21 in the case of a veteran who—

22 ‘‘(1) is eligible for burial in a national cemetery

23 under section 2402 of this title, and

24 ‘‘(2) is buried (without charge for the cost of a

25 plot or interment) in a cemetery, or a section of a

26 cemetery, that (A) is used solely for the interment
7

•HR 949 RFS

1 of persons eligible for burial in a national cemetery,

2 and (B) is owned by a State or by an agency or po3 litical subdivision of a State,

4 the Secretary shall pay to such State, agency, or political

5 subdivision the sum of $150 as a plot or interment allow6 ance for such veteran.’’.

7 SEC. 6. INCREASE IN FEDERAL AID TO STATES VETERANS’

8 CEMETERIES.

9 Paragraphs (1) and (2) of section 2408(b) are each

10 amended by striking out ‘‘50 percent’’ and inserting in

11 lieu thereof ‘‘65 percent.’’.

12 SEC. 7. EXTENSION OF AUTHORIZATION OF APPROPRIA13 TIONS FOR STATE CEMETERY GRANT PRO14 GRAM.

15 Paragraph (2) of section 2408(a) of title 38, United

16 States Code, is amended by striking out ‘‘nine’’ and insert17 ing in lieu thereof ‘‘fourteen’’.
8

•HR 949 RFS

1 SEC. 8. REMOVAL OF FUNDING REQUIREMENT OF HOME2 LESS VETERANS COMPREHENSIVE SERVICE

3 PROGRAMS ACT OF 1992.

4 Section 12 of the Homeless Veterans Comprehensive

5 Service Programs Act of 1992 (38 U.S.C. 7721 note) is

6 amended by striking out the second sentence.

Passed the House of Representatives September 21,

1993.

Attest: DONNALD K. ANDERSON,

Clerk.