HR 2475 IH1S 
homeowner under the mortgage a full disclosure that 
clearly states— 
‘‘(A) all of the costs charged to the homeowner, 
including the costs of estate planning, financial ad-
vice, and other services that are related to the mort-
gage but are not required to obtain the mortgage; 
and 
‘‘(B) which of the costs under subparagraph 
(A) are required to obtain the mortgage and which 
are not required to obtain the mortgage; and 
‘‘(2) The Secretary may, in lieu of carrying out para-
graph (1), adopt an alternative approach to educating an 
elderly veteran homeowner, but only if such alternative ap-
proach provides to the homeowner all of the information 
specified such paragraphs. For the purpose of carrying out 
the preceding sentence, the Secretary shall consult with 
industry representatives, consumer groups, representatives 
of counseling organizations, and other interested parties 
to identify alternative approaches to providing to the el-
derly veteran homeowner the information required under 
this subsection that may be feasible and desirable for 
home equity conversion mortgages guaranteed under this 
section. 
‘‘(f) LIMITATION ON AMOUNT OF BENEFITS.—In no 
case may the benefit from a guarantee of a mortgage 
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HR 2475 IH1S 
under this section exceed the maximum guarantee amount 
under section 3703 of this title. 
‘‘(g) ADDITIONAL AUTHORITY.—(1) To further the 
purposes of this section, the Secretary shall take any ac-
tion necessary— 
‘‘(A) to provide any elderly veteran homeowner 
with funds to which the homeowner is entitled under 
a mortgage guaranteed under this section, but that 
the homeowner has not received because of the de-
fault of the party responsible for payment; 
‘‘(B) to obtain repayment from any source of 
any amount provided to a homeowner under sub-
paragraph (A); and 
‘‘(C) to provide a covered mortgagee with funds 
to which the mortgagee is entitled under the terms 
of a mortgage guaranteed under this section. 
‘‘(2) Actions under paragraph (1) may include— 
‘‘(A) disbursing funds to the elderly veteran 
homeowner or covered mortgagee from the Veterans 
Housing Benefit Program Fund; 
‘‘(B) accepting an assignment of the guaran-
teed mortgage, notwithstanding that the homeowner 
is not in default under the terms of the mortgage, 
and calculating the amount and making the payment 
of a claim on such assigned mortgage; 
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‘‘(C) requiring a subordinate mortgage from the 
homeowner at any time in order to secure repay-
ments of any funds previously advanced or to be ad-
vanced to the homeowner; 
‘‘(D) requiring a subrogation to the Secretary 
of the rights of any parties to the transaction 
against any defaulting parties; and 
‘‘(E) imposing premium charges. 
‘‘(h) EXEMPTION FROM CERTAIN PROVISIONS OF 
LAW.—Section 137(b) of the Truth in Lending Act (15 
U.S.C. 1647(b)) and any implementing regulations issued 
by the Board of Governors of the Federal Reserve System 
shall not apply to a mortgage guaranteed under this sec-
tion. 
‘‘(i) AUTHORITY TO GUARANTEE MORTGAGES FOR 
REFINANCING.—(1) The Secretary may, upon application 
by a covered mortgagee, guarantee any mortgage given to 
refinance an existing home equity conversion mortgage 
guaranteed under this section. 
‘‘(2) As a condition of guaranteeing a mortgage 
under this subsection, the Secretary shall require that the 
covered mortgagee of a home equity conversion mortgage 
guaranteed under this subsection provide to the elderly 
veteran homeowner, within an appropriate period of time 
and in a manner, a good faith estimate of— 
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‘‘(A) the total cost of the refinancing; and 
‘‘(B) the increase in the homeowner’s principal 
limit as measured by the estimated initial principal 
limit on the mortgage to be guaranteed under this 
subsection, less the current principal limit on the 
home equity conversion mortgage that is being refi-
nanced and guaranteed under this subsection. 
‘‘(3) The amount of the loan fee for a mortgage refi-
nanced under this subsection shall be determined by the 
Secretary under section 3729 of this title. 
‘‘(4) In the case of an elderly veteran homeowner who 
applies for refinancing under this subsection, the Sec-
retary may waive the requirement that the homeowner re-
ceive information under subsection (e), but only if— 
‘‘(A) the increase in the principal limit exceeds 
the amount of the total cost of refinancing by an 
amount to be determined by the Secretary; and 
‘‘(B) the time between the closing of the origi-
nal home equity conversion mortgage being refi-
nanced through the mortgage guaranteed under this 
subsection and the application for a refinancing 
mortgage guaranteed under this subsection does not 
exceed five years. 
‘‘(j) ORIGINATION FEE.—The Secretary may estab-
lish a limit on the origination fee that may be charged 
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