II 

110TH CONGRESS 

2D SESSION S. 3087 

To amend title 38, United States Code, to make certain improvements in 

the home loan guaranty programs administered by the Secretary of 

Veterans Affairs, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 5, 2008 

Ms. SNOWE 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 make certain 

improvements in the home loan guaranty programs administered by the Secretary of Veterans Affairs, 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Helping Our Veterans 

5 to Keep Their Homes Act of 2008’’. 


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1 SEC. 2. IMPROVEMENTS IN HOME LOAN GUARANTY PRO2 GRAMS ADMINISTERED BY SECRETARY OF 

3 VETERANS AFFAIRS. 

4 (a) DECREASE IN EQUITY REQUIREMENT FOR CER5 TAIN LOANS.—Section 3710(b)(8) of title 38, United 

6 States Code, is amended by striking ‘‘90 percent’’ and in7 serting ‘‘100 percent’’. 

8 (b) REPEAL OF LOAN FEE REQUIREMENT FOR

9 LOANS OTHER THAN LOANS TO REFINANCE INDEBTED10 NESS.—Section 3729 of title 38, United States Code, is 

11 amended— 

12 (1) in subsection (a), by striking paragraph (1) 

13 and inserting the following new paragraph (1): 

14 ‘‘(1)(A) Except as provided in subsection (c), a fee 

15 shall be collected from each person obtaining a hous16 ing loan described in subparagraph (B). No such 

17 loan may be guaranteed, insured, made, or assumed 

18 until the fee payable under this section has been re19 mitted to the Secretary. 

20 ‘‘(B) A housing loan described in this subparagraph 

21 is a loan to be used to refinance indebtedness under sec22 tion 3710(a)(5), (8), (9)(B), or (11) or section 

23 3712(a)(1)(F) of this title. 

24 ‘‘(C) The Secretary may not collect a fee under this 

25 section from a person obtaining a loan guaranteed, inVerDate Aug 31 2005 02:15 Jun 07, 2008 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3087.IS S3087

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1 sured, made, or assumed under this chapter other than 

2 a loan described in subparagraph (B).’’; and 

3 (2) by striking subsection (b) and inserting the 

4 following new subsection (b): 

5 ‘‘(b) AMOUNT OF FEE.—The amount of the fee pay6 able under subsection (a) shall be one percent of the total 

7 amount of the loan described in paragraph (1)(B) that is 

8 guaranteed, insured, or made under this chapter, or, in 

9 the case of a loan assumption, the unpaid principal bal10 ance of the loan on the date of the transfer of the property 

11 under this chapter.’’. 

12 (c) EXTENSION OF DEMONSTRATION PROJECT ON

13 ADJUSTABLE RATE MORTGAGES.—Section 3707(a) of 

14 such title is amended by striking ‘‘2008’’ and inserting 

15 ‘‘2018’’. 

16 (d) EXTENSION OF DEMONSTRATION PROJECT ON

17 HYBRID ADJUSTABLE RATE MORTGAGES.—Section 

18 3707A(a) of such title is amended by striking ‘‘2008’’ and 

19 inserting ‘‘2012’’. 

20 (e) INCREASE IN MAXIMUM GUARANTY AMOUNT.— 

21 Section 3703(a)(1)(C) of title 38, United States Code, is 

22 amended by inserting ‘‘175 percent of’’ after ‘‘25 percent 

23 of’’. 

24 (f) REVIEW OF LOANS FOR PURCHASE OF CON25 DOMINIUMS.—The Secretary of Veterans Affairs shall reVerDate Aug 31 2005 02:15 Jun 07, 2008 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3087.IS S3087

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1 view and streamline the process of guaranteeing home 

2 loans under chapter 37 of title 38, United States Code, 

3 for the purchase of a condominium. 

4 (g) INCREASE IN MAXIMUM GUARANTY AMOUNT FOR

5 CERTAIN REFINANCED LOANS.—Section 

6 3703(a)(1)(A)(i)(IV) of title 38, United States Code, is 

7 amended by inserting ‘‘(5),’’ after ‘‘(3),’’. 

8 (h) INCREASE IN GUARANTY FOR AFFORDABLE

9 HOMES.—Section 3703(a)(1) of title 38, United States 

10 Code, is amended— 

11 (1) by redesignating subparagraph (C) as sub12 paragraph (D); and 

13 (2) by inserting after subparagraph (B) the fol14 lowing new subparagraph (C): 

15 ‘‘(C)(i) The maximum amount of guaranty entitle16 ment available to an eligible veteran for a loan in any 

17 amount to purchase a dwelling to be owned and occupied 

18 by the veteran as a home, if the dwelling is affordable 

19 housing (as determined by the Secretary, in consultation 

20 with the Secretary of Housing and Urban Development 

21 and the heads of other appropriate agencies), shall be the 

22 greater of— 

23 ‘‘(I) the amount of guaranty entitlement avail24 able to the veteran under subparagraph (A); or 

25 ‘‘(II) 30 percent of the loan. 


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1 ‘‘(ii) For the purposes of this subparagraph, the term 

2 ‘eligible veteran’ means a veteran whose annual income is 

3 below a maximum income amount, which shall be deter4 mined by the Secretary.’’. 

Æ 


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