VA Home Loan Program Reform Act

Today's wording of each part of the law, with what was struck out and added. Each change also gives the bill's own instruction, word for word.

1. 38 U.S.C. 3732(a)(1)changedby H.R. 1815 Sec. 2(a)

   (a)(1) In the event of default in the payment of any loan guaranteed under this chapter, the holder of the obligationloan shall notify the Secretary of such default. Upon receipt of such notice, the Secretary may, subject to subsection (c) of this section, pay to such holder the guaranty not in excess of the pro rata portion of the amount originally guaranteed. Except as provided in section 3703(e) of this title, if the Secretary makes such a payment, the Secretary shall be subrogated to the rights of the holder of the obligationloan to the extent of the amount paid on the guaranty.

   The bill says: in paragraph (1), by striking "obligation" each place it appears and inserting "loan";

   Bill text · Current law (38 U.S.C. 3732)

2. 38 U.S.C. 3732(a)(2)rewrittenby H.R. 1815 Sec. 2(a)

   (A) The Secretary may, under terms and conditions determined by the Secretary—(i) pay the holder of a loan guaranteed under this chapter an amount necessary to avoid the foreclosure of such loan;(ii) require the holder of the loan and the veteran obligated on the loan to execute all documents necessary to ensure the Secretary obtains a secured interest in the property covered by the loan; and(iii) require the holder of the loan to take any actions necessary to carry out this paragraph, including preparing, executing, transmitting, receiving, and recording documents, and requiring the holder of the loan to place the loan in forbearance.

   The bill says: by amending subparagraph (A) to read as follows:

   Bill text · Current law (38 U.S.C. 3732)

3. 38 U.S.C. 3732(a)(2)(B)changedby H.R. 1815 Sec. 2(a)

   (B) In the event that a housing loan guaranteed under this chapter is modified under the authority provided under section 1322(b) of title 11, the Secretary may pay the holder of the obligationhousing loan the unpaid principal balance of the obligationhousing loan due, plus accrued interest, as of the date of the filing of the petition under title 11, but only upon the assignment, transfer, and delivery to the Secretary (in a form and manner satisfactory to the Secretary) of all rights, interest, claims, evidence, and records with respect to the housing loan.

   The bill says: in subparagraph (B), by striking "obligation" each place it appears and inserting "housing loan"; and

   Bill text · Current law (38 U.S.C. 3732)

4. 38 U.S.C. 3732(a)(2)added (C)by H.R. 1815 Sec. 2(a)

   (C)(i) Any decision by the Secretary under this paragraph is final and is not subject to judicial review.(ii) For purposes of section 511 of this title, any decision under this paragraph shall not be treated as a decision under a law that affects the provision of benefits.(D)(i) The Secretary may establish standards for processing payments under this paragraph based on a certification by a holder of a loan guaranteed under this chapter that the holder has complied with all applicable requirements established by the Secretary.(ii) The Secretary shall carry out, on a random-sampling basis, post-payment audits to ensure compliance with all requirements described in clause (i).

   The bill says: by adding at the end the following new subparagraphs:

   Bill text · Current law (38 U.S.C. 3732)

5. 38 U.S.C. 3732(a)(5)changedby H.R. 1815 Sec. 2(a)

   (5) In the event of default in the payment of any loan guaranteed or insured under this chapter in which a partial payment has been tendered by the veteran concerned and refused by the holder, the holder of the obligationloan shall notify the Secretary as soon as such payment has been refused. The Secretary may require that any such notification include a statement of the circumstances of the default, the amount tendered, the amount of the indebtedness on the date of the tender, and the reasons for the holder's refusal.

   The bill says: in paragraph (5), by striking "obligation" and inserting "loan";

   Bill text · Current law (38 U.S.C. 3732)

6. 38 U.S.C. 3732(c)(1)changedby H.R. 1815 Sec. 2(a)

   (c)(1) For purposes of this subsection—subsection: (A) The term "defaulted loan" means a loan that is guaranteed under this chapter, that was made for a purpose described in section 3710(a) of this title, and that is in default. (B) The term "liquidation sale" means a judicial sale or…

   The bill says: in paragraph (1), in the matter preceding subparagraph (A), by striking "subsection—" and inserting "subsection:"; and

   Bill text · Current law (38 U.S.C. 3732)

7. 38 U.S.C. 3732(c)(10)(B)(i)changedby H.R. 1815 Sec. 2(a)

   (B)(i) Subject to division (ii) of this subparagraph, in any case in which there is a substantial delay in such sale caused by the holder of the loan exercising forebearanceforbearance at the request of the Secretary, the date referred to in paragraph (1)(D)(ii) of this subsection shall be such date, on or after the date on which forebearanceforbearance was requested and prior to the date of such sale, as the Secretary specifies pursuant to regulations which the Secretary shall prescribe to implement this paragraph.

   The bill says: in paragraph (10)(B)(i), by striking "forebearance" each place it appears and inserting "forbearance"; and

   Bill text · Current law (38 U.S.C. 3732)

8. 38 U.S.C. 3732added (d)by H.R. 1815 Sec. 2(a)

   (d) The Secretary shall prescribe loss mitigation procedures, including a mandatory sequence in which the holder of a loan guaranteed under this chapter shall offer loss mitigation options (including an option to enter into a partial claim agreement under the VA Home Loan Program Reform Act) to a veteran, to help prevent the foreclosure of such loan. The Secretary may not purchase an entire such loan until the veteran has completed such sequence.

   The bill says: by adding at the end the following new subsection:

   Bill text · Current law (38 U.S.C. 3732)

9. 38 U.S.C. 2016(7)changedby H.R. 1815 Sec. 5(1)

   (7) $257,700,000 for fiscal year 2015 and each subsequent fiscal yeareach of fiscal years 2015 through 2024.

   The bill says: in paragraph (7), by striking "fiscal year 2015 and each subsequent fiscal year" and inserting "each of fiscal years 2015 through 2024"; and

   Bill text · Current law (38 U.S.C. 2016)

10. 38 U.S.C. 2016added (8)by H.R. 1815 Sec. 5(2)

    (8) $344,000,000 for each of fiscal years 2025 and 2026.(9) $257,700,000 for each fiscal year thereafter through fiscal year 2030.

    The bill says: by adding at the end the following new paragraphs:

    Bill text · Current law (38 U.S.C. 2016)

From the bill's official text on GovInfo and the U.S. Code, 2024 edition, which may not yet show changes made since.