II

104TH CONGRESS

1ST SESSION S. 993

To amend title 38, United States Code, to provide for cost-savings in the

housing loan program for veterans, to limit cost-of-living increases for

Montgomery GI bill benefits, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 29 (legislative day, JUNE 19), 1995

Mr. SIMPSON (by request) introduced the following bill; which was read twice

and referred to the Committee on Veterans’ Affairs

A BILL

To amend title 38, United States Code, to provide for costsavings in the housing loan program for veterans, to

limit cost-of-living increases for Montgomery GI bill benefits, 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 That this Act may be cited as the ‘‘Veterans’ Housing

4 Loan Program and Montgomery GI Bill Cost-Reduction

5 Act of 1995’’.
2

S 993 IS

1 TITLE I—HOUSING LOANS

2 SEC. 101. REPEAL OF LOAN DEBIT COLLECTION RESTRIC3 TIONS.

4 (a) Subchapter III of chapter 37 of title 38, United

5 States Code, is amended by striking out section 3726 in

6 its entirety.

7 (b) The table of sections for such subchapter is

8 amended by striking out

‘‘3726. Withholding of payments, benefits, etc.’’

9 and inserting in lieu thereof

‘‘[3726. Repealed.]’’

10 SEC. 102. MANUFACTURED HOME LOAN DOWNPAYMENT

11 AND FEE.

12 (a) Section 3712(c)(5) of title 38, United States

13 Code, is amended by striking out ‘‘95’’ and inserting in

14 lieu thereof ‘‘90’’.

15 (b) Section 3729(a)(2)(A) of title 38, United States

16 Code, is amended by—

17 (1) inserting ‘‘(i)’’ immediately after ‘‘(A)’’;

18 (2) striking out ‘‘of this title or for any purpose

19 specified in section 3712 (other than section

20 3712(a)(1)(F))’’;

21 (3) inserting ‘‘or’’ immediately after ‘‘amount;’’;

22 and

23 (4) inserting at the end thereof the following

24 new clause:
3

S 993 IS

1 ‘‘(ii) in the case of a loan made for any

2 purpose specified in section 3712 (other than

3 section 3712(a)(1)(F)) of this title, the amount

4 of the fee shall be two percent of the total loan

5 amount;’’.

6 (c) Section 3729(a)(2)(D)(ii) of title 38, United

7 States Code, is amended by striking out ‘‘one’’ and insert8 ing in lieu thereof ‘‘two’’.

9 (d) The amendments made by this section shall apply

10 to all loans closed on or after October 1, 1995.

11 SEC. 103. EXTENSION OF LOAN FEE INCREASE.

12 Section 3729(a)(4) of title 38, United States Code,

13 is amended by striking out ‘‘1998,’’ and inserting in lieu

14 thereof ‘‘2000,’’.

15 SEC. 104. EXTENSION OF FEE FOR MULTIPLE USE OF LOAN

16 ENTITLEMENT.

17 Section 3729(a)(5)(C) of title 38, United States

18 Code, is amended by striking out ‘‘1998.’’ and inserting

19 in lieu thereof ‘‘2000.’’.

20 SEC. 105. EXTENSION OF NO-BID FORMULA.

21 Section 3732(c)(11) of title 38, United States Code,

22 is amended by striking out ‘‘1998.’’ and inserting in lieu

23 thereof ‘‘2000.’’.
4

S 993 IS

1 TITLE II—MONTGOMERY GI BILL

2 SEC. 201. LIMITATION REGARDING COST–OF–LIVING AD3 JUSTMENTS FOR MONTGOMERY GI BILL BEN4 EFITS.

5 For fiscal year 1996 and each subsequent fiscal year

6 through 2000, the cost-of-living adjustments in the rates

7 of educational assistance payable under chapter 30 of title

8 38, United States Code, and under chapter 1606 of title

9 10, United States Code, shall be the percentage equal to

10 50 percent of the percentage by which such assistance

11 would be increased under section 3015(g) of title 38, and

12 under section 16131(b)(2) of title 10, United States Code,

13 respectively, but for this section.

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