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110TH CONGRESS 
1ST SESSION H. R. 2475 
To amend title 38, United States Code, to authorize the Secretary of Veterans 
Affairs to guarantee home equity conversion mortgages for elderly vet-
eran homeowners. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 24, 2007 
Mr. MICHAUD (for himself and Ms. GINNY BROWN-WAITE of Florida) intro-
duced the following bill; which was referred to the Committee on Vet-
erans’ Affairs, and in addition to the Committee on Financial Services, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
A BILL 
To amend title 38, United States Code, to authorize the 
Secretary of Veterans Affairs to guarantee home equity 
conversion mortgages for elderly veteran homeowners. 
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 Equity 
Conversion Mortgage Act of 2007’’. 
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SEC. 2. DEPARTMENT OF VETERANS AFFAIRS GUARANTEE 
OF HOME EQUITY CONVERSION MORTGAGES 
FOR ELDERLY VETERAN HOMEOWNERS. 
(a) LOAN GUARANTEE AUTHORIZED.—Subchapter II 
of chapter 37 of title 38, United States Code, is amended 
by adding at the end the following new section: 
‘‘§ 3715. Guarantee of home equity conversion mort-
gages for elderly veteran homeowners 
‘‘(a) LOAN GUARANTEE.—Upon receiving an applica-
tion by a covered mortgagee and under such terms and 
conditions as the Secretary may prescribe, the Secretary 
may guarantee any home equity conversion mortgage that 
is made to an elderly veteran homeowner pursuant to the 
provisions of this section and conforms with all applicable 
provisions of this title. 
‘‘(b) STANDARDS FOR COMMITMENT.—The Secretary 
shall establish standards under which the Secretary will 
commit to guarantee such home equity conversion mort-
gage made to an elderly veteran homeowner before the 
date on which the mortgage is executed, if the Secretary 
determines that the mortgage— 
‘‘(1) is likely to improve the financial situation 
or otherwise meet the special needs of the elderly 
veteran homeowner; 
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‘‘(2) will include appropriate safeguards for the 
elderly veteran homeowner to offset the special risks 
associated with the mortgage; and 
‘‘(3) has such terms as the Secretary may es-
tablish to ensure that it is accepted in the secondary 
mortgage market. 
‘‘(c) MORTGAGE ELIGIBILITY.—A home equity con-
version mortgage may be guaranteed under this section 
if it— 
‘‘(1) is secured by a dwelling, farm residence, 
one-family residential unit in a condominium hous-
ing development or project, or manufactured home 
permanently affixed to a lot, that is owned and occu-
pied by the eligible elderly veteran homeowner; 
‘‘(2) has been executed by an elderly veteran 
homeowner who— 
‘‘(A) has discussed with a loan counselor 
approved by the Secretary— 
‘‘(i) options other than a home equity 
conversion mortgage that are available to 
the homeowner, including other housing, 
social service, health, and financial options; 
‘‘(ii) other home equity conversion op-
tions that are or may become available to 
the homeowner, such as sale-leaseback fi-
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