under this chapter who receives a partial claim 
under this section to take any actions necessary to 
establish the partial claim, including preparing, exe-
cuting, transmitting, receiving, and recording loan 
documents. 
‘‘(3) COMPENSATION
OF
HOLDER.—The Sec-
retary shall compensate the holder of a loan guaran-
teed under this chapter who receives a partial claim 
under this section appropriately, as determined by 
the Secretary, for the services required of such hold-
er under this subsection. 
‘‘(4) EXERCISE
OF
POWERS.—The Secretary 
may exercise the authority of the Secretary under 
this subsection without regard to any other provision 
of law not enacted expressly in limitation of this sec-
tion that would otherwise govern the expenditure of 
public funds. 
‘‘(e) DEFAULT AND FORECLOSURE.— 
‘‘(1) DEFAULT.— 
‘‘(A) IN GENERAL.—Notwithstanding sec-
tion 3703(e) of this title, an individual who de-
faults under a partial claim made under this 
section shall be liable to the Secretary for any 
loss suffered by the Secretary resulting from 
such default, and such loss may be recovered in 
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the same manner as any other debt due the 
United States. 
‘‘(B) REDUCTION
OF
ENTITLEMENT.—In 
the event of default by an individual under a 
partial claim made under this section, the Sec-
retary may reduce the aggregate amount of 
guaranty or insurance housing loan entitlement 
available to the individual under this chapter. 
‘‘(2) FORECLOSURE.—Notwithstanding section 
2410(c) of title 28, an action to foreclose a lien held 
by the United States arising under a partial claim 
made under this section shall follow foreclosure pro-
cedures in accordance with State or local law where 
the property involved is located. 
‘‘(f) DECISIONS BY THE SECRETARY.— 
‘‘(1) SOLE
DISCRETION.—Any partial claim 
under this section shall be made in the sole discre-
tion of the Secretary and on terms and conditions 
acceptable to the Secretary that are consistent with 
this section. 
‘‘(2) FINAL AND CONCLUSIVE.—Any decision by 
the Secretary under this section is final and conclu-
sive and is not subject to judicial review. 
‘‘(3) AFFECT ON PROVISION OF BENEFITS.— 
For purposes of section 511 of this title, any deci-
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sion under this section shall not be treated as a deci-
sion under a law that affects the provision of bene-
fits. 
‘‘(g) COMPLIANCE.— 
‘‘(1) PROCESSING
PAYMENTS.—The Secretary 
may establish standards for processing payments 
under this section based on a certification by a hold-
er of a loan guaranteed under this chapter that the 
holder has complied with all applicable requirements 
established by the Secretary. 
‘‘(2) AUDITS.—The Secretary shall carry out, 
on a random-sampling basis, post-payment audits to 
ensure compliance with all requirements described in 
paragraph (1). 
‘‘(h) APPLICATION TO CERTAIN LOANS.— 
‘‘(1) IN GENERAL.—With respect to loans de-
scribed in paragraph (2), the Secretary may— 
‘‘(A) issue administrative guidance to 
make partial claims relating to such loans avail-
able under this section before prescribing regu-
lations; and 
‘‘(B) establish through such guidance addi-
tional requirements applicable to such partial 
claims, which shall include the prohibition 
under subsection (c)(4). 
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‘‘(2) LOAN DESCRIBED.—A loan described in 
this paragraph is a loan that the Secretary deter-
mines was in default as of the date of the enactment 
of the Veterans Housing Stability Act of 2024. 
‘‘(3) TERMINATION.—The Secretary may not 
accept a request for a partial claim under this sub-
section after December 31, 2025. 
‘‘(i) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to limit the authority of the Sec-
retary under subsections (a) and (d) of section 3732 of 
this title.’’. 
(c) CIVIL PENALTIES.—Such subchapter is further 
amended by inserting after section 3723, as added by sub-
section (b), the following new section: 
‘‘§ 3724. Civil penalties with respect to loan holders 
‘‘(a) IN GENERAL.—Any holder of a loan guaranteed 
under this chapter that knowingly and materially makes 
a false statement under section 3723 or 3732 of this title 
shall be liable to the United States Government for a civil 
penalty equal to the greater of— 
‘‘(1) two times the amount of the loss suffered 
by the Secretary; or 
‘‘(2) another appropriate amount determined by 
the Secretary, not to exceed $27,894. 
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‘‘(b) RECOVERY.—A civil penalty under this section 
may be recovered in the same manner as any other debt 
due the United States. 
‘‘(c) ADDITIONAL CHARGES.—In assessing a civil 
penalty under this section, the Secretary may charge ad-
ministrative costs, fees, and interest, as appropriate, in a 
manner similar to the interest and administrative costs 
charged under section 5315 of this title. 
‘‘(d) DETERMINATIONS.—All determinations nec-
essary to carry out this section shall be made by the Sec-
retary.’’. 
(d) PROCEDURE
ON DEFAULT.—Section 3732 of 
such title is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘obliga-
tion’’ each place it appears and inserting 
‘‘loan’’; 
(B) in paragraph (2)— 
(i) by amending subparagraph (A) to 
read as follows: 
‘‘(A) The Secretary may, upon such terms and condi-
tions as determined by the Secretary— 
‘‘(i) pay the holder of a loan guaranteed under 
this chapter an amount necessary to avoid the fore-
closure of such loan; 
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