I 
117TH CONGRESS 
1ST SESSION H. R. 4657 
To amend title 38, United States Code, to improve the accuracy of mortgage 
underwriting for home loans guaranteed by the Department of Veterans 
Affairs by ensuring that energy costs are included in the underwriting 
process, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 22, 2021 
Mr. LEVIN of California introduced the following bill; which was referred to 
the Committee on Veterans’ Affairs 
A BILL 
To amend title 38, United States Code, to improve the 
accuracy of mortgage underwriting for home loans guar-
anteed by the Department of Veterans Affairs by ensur-
ing that energy costs are included in the underwriting 
process, 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. SHORT TITLE. 
This Act may be cited as the ‘‘Veteran Home Energy 
Savings Act’’. 
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SEC. 2. ENHANCED LOAN ELIGIBILITY REQUIREMENTS. 
(a) IN GENERAL.—Section 3710 of title 38, United 
States Code, is amended— 
(1) in subsection (g)(3)(C), by inserting ‘‘, in-
cluding with respect to the energy efficiency of the 
home for which the loan is to be guaranteed as de-
scribed in subsection (i)’’ before the period; and 
(2) by adding at the end the following new sub-
section: 
‘‘(i)(1)(A) Following the date on which the Secretary 
issues the guidance under paragraph (3), in cases where 
a veteran provides to the Secretary an energy efficiency 
report described in subparagraph (C) for a home for which 
a loan is to be guaranteed, the procedures established pur-
suant to subsection (g)(3)(C) for ascertaining the monthly 
income required by a veteran to meet anticipated loan pay-
ment terms shall take into consideration the estimated en-
ergy cost savings expected for the veteran for the home, 
including such cost savings relating to the cost of elec-
tricity, natural gas, oil, and any other fuel regularly used 
to supply energy to the home. 
‘‘(B) An energy efficiency report described in this 
subparagraph, with respect to a home for which a loan 
is to be guaranteed, means a report that— 
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‘‘(i) estimates the expected energy cost savings 
specific to the home, based on specific information 
about the home; 
‘‘(ii) is prepared in accordance with regulations 
prescribed by the Secretary for purposes of this sub-
section; and 
‘‘(iii) is prepared in accordance with— 
‘‘(I) the Residential Energy Service Net-
work’s Home Energy Rating System (commonly 
known as ‘HERS’) by an individual certified by 
such Network; or 
‘‘(II) other methods determined appro-
priate by the Secretary, in consultation with the 
advisory committee under paragraph (2), in-
cluding with respect to third-party quality as-
surance procedures. 
‘‘(2)(A) To assist the Secretary in carrying out this 
subsection, the Secretary shall establish an advisory group 
consisting of individuals representing the interests of— 
‘‘(i) mortgage lenders; 
‘‘(ii) appraisers; 
‘‘(iii) energy raters and residential energy con-
sumption experts; 
‘‘(iv) energy efficiency organizations; 
‘‘(v) real estate agents; 
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‘‘(vi) home builders and remodelers; 
‘‘(vii) consumer advocates; 
‘‘(viii) veterans’ service organizations; and 
‘‘(ix) other persons determined appropriate by 
the Secretary. 
‘‘(B) The advisory group established under subpara-
graph (A) shall not be subject to the Federal Advisory 
Committee Act (5 U.S.C. App.). 
‘‘(3) The Secretary, in consultation with the advisory 
group established under paragraph (2)(A), shall ensure 
that the procedures described in subsection (g)(3)(C) in-
clude guidance for lenders to carry out paragraph (1) that 
uses clear instructions and standards. 
‘‘(4) The Secretary shall ensure that marketing mate-
rials that the Secretary provides to veterans with respect 
to loans guaranteed under this chapter include informa-
tion regarding the use of energy efficiency reports under 
this subsection. 
‘‘(5) Not later than one year after the date on which 
the Secretary issues the guidance under paragraph (3), 
and every year thereafter, the Secretary shall submit to 
Congress and make publicly available a report that— 
‘‘(A) enumerates the number of loans guaran-
teed for which a veteran provided to the Secretary 
an energy efficiency report, including the number of 
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such loans for which cost savings were taken into ac-
count pursuant to paragraph (1); and 
‘‘(B) of the number of loans enumerated under 
subparagraph (A), an enumeration of the default 
rates and rates of foreclosure, including how such 
enumeration compares with the default rates and 
rates of foreclosure for guaranteed loans for which 
no energy efficiency report is provided.’’. 
(b) CLARIFICATION OF REQUIREMENTS REGARDING 
ENERGY EFFICIENCY STANDARDS.—Section 3704(f) of 
such title is amended by striking ‘‘such standards’’ and 
inserting the following: ‘‘the standards established under 
such section 109, as in effect on the date of such construc-
tion’’. 
Æ 
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