HR 2475 IH1S 
to an elderly veteran homeowner for a mortgage guaran-
teed under this section, except that such limitation shall 
provide that the origination fee may be fully financed with 
the mortgage and shall include any fees paid to cor-
respondent mortgagees approved by the Secretary. 
‘‘(k) FEE WAIVER.—(1) Notwithstanding section 
3729 of this title, in the case of a mortgage guaranteed 
under this section for which the total amount (except as 
provided under paragraph (2)) of all future payments de-
scribed in subsection (l)(4)(B) are to be used only to fund 
the cost of a qualified long-term care insurance contract 
that covers the elderly veteran homeowner or a member 
of the homeowner’s household residing in the property 
subject to the mortgage, the Secretary may not charge or 
collect the loan fee otherwise required under subparagraph 
(a) of such section. 
‘‘(2) A mortgage described in paragraph (1) may pro-
vide for financing of any amount used to satisfy out-
standing mortgage obligations (in accordance with such 
limitations as the Secretary shall prescribe) and any 
amount used for initial service charges, appraisal, inspec-
tion, and other fees (as approved by the Secretary) in con-
nection with such mortgage, and the amount of future 
payments shall be reduced accordingly. 
VerDate Aug 31 2005 
01:58 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2475.IH
H2475
bajohnson on PROD1PC69 with BILLS
HR 2475 IH1S 
‘‘(3) For purposes of this subsection, the term ‘quali-
fied long-term care insurance contract’ has the meaning 
given such term in section 7702B of the Internal Revenue 
Code of 1986 (26 U.S.C. 7702B), except that such con-
tract shall also meet the requirements of— 
‘‘(A) sections 9 (relating to disclosure), 24 (re-
lating to suitability), and 26 (relating to contingent 
nonforfeiture) of the long-term care insurance model 
regulation promulgated by the National Association 
of Insurance Commissioners (as adopted as of Sep-
tember 2000); and 
‘‘(B) section 8 (relating to contingent nonfor-
feiture) of the long-term care insurance model Act 
promulgated by the National Association of Insur-
ance Commissioners (as adopted as of September 
2000). 
‘‘(l) DEFINITIONS.—For the purposes this section: 
‘‘(1) The term ‘elderly veteran homeowner’ 
means any homeowner who is, or whose spouse is, 
a veteran who is eligible for housing loan benefits 
under this title and who is at least 62 years of age 
or such higher age as the Secretary may prescribe. 
‘‘(2) The term ‘mortgage’ means a first mort-
gage or first lien— 
‘‘(A) on real estate, in fee simple; 
VerDate Aug 31 2005 
01:58 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2475.IH
H2475
bajohnson on PROD1PC69 with BILLS
HR 2475 IH1S 
‘‘(B) on all stock allocated to a dwelling in 
a residential cooperative housing corporation; or 
‘‘(C) on a leasehold that is— 
‘‘(i) under a lease for not less than 99 
years that is renewable; or 
‘‘(ii) under a lease having a period of 
not less than 10 years to run beyond the 
maturity date of the mortgage. 
‘‘(3) The term ‘first mortgage’ means a first 
lien that is given to secure an advance on, or the un-
paid purchase price of, real estate or all stock allo-
cated to a dwelling unit in a residential cooperative 
housing corporation, under the laws of the State in 
which the real estate or dwelling unit is located, to-
gether with any credit instruments secured for such 
purpose. 
‘‘(4) The term ‘home equity conversion mort-
gage’ means a housing loan, as defined in section 
3701 of this chapter that— 
‘‘(A) is secured by a first mortgage; 
‘‘(B) provides for future payments to the 
homeowner based on accumulated equity; and 
‘‘(C) is made by— 
‘‘(i) a Federal land bank, National 
bank, State bank, private bank, building 
VerDate Aug 31 2005 
01:58 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H2475.IH
H2475
bajohnson on PROD1PC69 with BILLS
HR 2475 IH1S 
and loan association, insurance company, 
credit union, or mortgage and loan com-
pany, that is subject to examination and 
supervision by an agency of the United 
States or of any State; or 
‘‘(ii) a State; or 
‘‘(iii) a lender or mortgage broker ap-
proved by the Secretary pursuant to stand-
ards established by the Secretary.’’. 
(b) CONFORMING AMENDMENT.—Section 3701(a) of 
such title is amended by striking ‘‘sections 3710(a) and 
3712(a)(1)’’ and inserting ‘‘sections 3710(a), 3712(a)(1), 
and 3715’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the items relating to subchapter II the following new 
item: 
‘‘3715. Guarantee of home equity conversion mortgages for elderly veteran 
homeowners.’’. 
Æ 
VerDate Aug 31 2005 
01:58 Sep 06, 2007
Jkt 059200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6301
E:\BILLS\H2475.IH
H2475
bajohnson on PROD1PC69 with BILLS