103D CONGRESS
1ST SESSION
H. R. 949
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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. INCREASE IN AMOUNT OF LOAN GUARANTY
FOR LOANS FOR THE PURCHASE OR CON-
STRUCTION 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 FORE-
CLOSURE 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:
‘‘§ 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 sec-
tion 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 pro-
vided only if—
‘‘(A) the dwelling that secures the primary loan
is the current residence of the veteran and is occu-
pied 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 ‘vet-
eran’ includes the surviving spouse of a veteran if the sur-
viving 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 in-
cluding any amount delinquent on taxes, assessments, haz-
ard insurance, and late charges required by the holder to
be included in the veteran’s monthly payment on the mort-
gage. Any remaining amount of such loan shall be retained
by the holder and shall be applied to future payments, in-
cluding 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 in-
cluded in the veteran’s monthly payment on the
mortgage) are current, and thereafter shall bear in-
terest 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 sec-
tion 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 Sec-
retary, 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 Sec-
retary 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 ju-
risdiction 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 sec-
tion.’’.
(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 ELI-
GIBLE FOR BURIAL IN A NATIONAL CEME-
TERY 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