,,ii #aaeth ,,congress #b;d ,session ,s4 #bcjd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #aa1 #bjah ,mr4 ,tillis 7for himself1 ,ms4 ,warren1 ,mr4 ,heller1 ,mr4 ,tester1 ,mrs4 ,capito1 ,mr4 ,manchin1 ,mr4 ,burr1 ,mr4 ,schatz1 ,mr4 ,sullivan1 ,mr4 ,van ,hollen1 ,mr4 ,scott1 and ,mr4 ,donnelly7 introduced the following bill2 which was read twice and referred to the ,committee on ,veterans' ,affairs ,a ,,bill ,to amend title #ch1 ,united ,states ,code1 to protect veterans from predatory lending1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,protecting ,veterans from ,predatory ,lending ,act of #bjah4 #b4 ,protecting veterans from predatory lending 7a7 ,in general ,subchapter ,i of chapter #cg of title #ch1 ,united ,states ,code1 is amended by adding at the end the following new section3 #cgji4 ,refinancing of housing loans 7a7 ,fee recoupment ,notwithstanding section #cgjc of this title or any other provision of law1 a loan to a veteran for a purpose specified in section #cgaj of this title that is refinanced may not be guaranteed or insured under this chapter unless-- 7#a7 the issuer of the refinanced loan provides the ,secretary with a certification of the recoupment period for fees1 closing costs1 and any expenses 7other than taxes1 amounts held in escrow1 and fees paid under this chapter7 that would be incurred by the borrower in the refinancing of the loan2 7#b7 all of the fees and incurred costs are scheduled to be recouped on or before the date that is #cf months after the date of loan issuance2 and 7#c7 the recoupment is calculated through lower regular monthly payments as a result of the refinanced loan4 7b7 ,net tangible benefit test ,notwithstanding section #cgjc of this title or any other provision of law1 a loan to a veteran for a purpose specified in section #cgaj of this title that is refinanced may not be guaranteed or insured under this chapter unless-- 7#a7 the issuer of the refinanced loan provides the borrower with a net tangible benefit test2 7#b7 in a case in which the original loan had a fixed rate mortgage interest rate and the refinanced loan will have a fixed rate mortgage interest rate1 the refinanced loan has a mortgage interest rate that is not less than #ej basis points less than the previous loan2 7#c7 in a case in which the original loan had a fixed rate mortgage interest rate and the refinanced loan will have an adjustable rate mortgage interest rate1 the refinanced loan has a mortgage interest rate that is not less than #bjj basis points less than the previous loan2 and 7#d7 the lower interest rate is not produced solely from discount points1 unless-- 7,a7 such points are paid at closing2 and 7,b7 such points are not added to the principal loan amount1 unless the resulting loan balance after any fees and expenses allows the property with respect to which the loan was issued to maintain a loan to value ratio of #ij percent or less4 7c7 ,loan seasoning ,notwithstanding section #cgjc of this title or any other provision of law1 a loan to a veteran for a purpose specified in section #cgaj of this title that is refinanced may not be guaranteed or insured under this chapter until the date that is the later of-- 7#a7 the date that is #baj days after the date on which the first monthly payment is made on the loan2 and 7#b7 the date on which the sixth monthly payment is made on the loan4 4 7b7 ,regulations 7#a7 ,in general ,in prescribing any regulation to carry out section #cgji of title #ch1 ,united ,states ,code1 as added by subsection 7a71 the ,secretary may waive the requirements of sections #eea through #eei of title #e1 ,united ,states ,code1 if-- 7,a7 the ,secretary determines that urgent or compelling circumstances make compliance with such requirements impracticable or contrary to the public interest2 7,b7 the ,secretary submits to the ,committee on ,veterans' ,affairs of the ,senate and the ,committee on ,veterans' ,affairs of the ,house of ,representatives1 and publishes in the ,federal ,register1 notice of such waiver1 including a description of the determination made under subparagraph 7,a72 and 7,c7 a period of #aj days elapses following the notification under subparagraph 7,b74 7#b7 ,public notice and comment ,if a regulation prescribed pursuant to a waiver made under paragraph 7#a7 is in effect for a period exceeding one year1 the ,secretary shall provide the public an opportunity for notice and comment regarding such regulation4 7#c7 ,effective date ,this subsection shall take effect on the date of the enactment of this ,act4 7#d7 ,termination date ,the authorities under this subsection shall terminate on the date that is one year after the date of the enactment of this ,act4 7c7 ,clerical amendment ,the table of sections at the beginning of chapter #cg of title #ch1 ,united ,states ,code1 is amended by inserting after the item relating to section #cgjh the following new item3 #cgji4 ,refinancing of housing loans4 4 #c4 ,loan seasoning for ginnie mae mortgage-backed securities ,section #cjf7;g77#a7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agba7;g77#a77 is amended by inserting ,the ,association may not guarantee the timely payment of principal and interest on a security that is backed by a mortgage insured or guaranteed under chapter #cg of title #ch1 ,united ,states ,code1 and that was refinanced until the later of the date that is #baj days after the date on which the first monthly payment is made on the mortgage being refinanced and the date on which #f full monthly payments have been made on the mortgage4 after ,act of #aiib44 #d4 ,report on liquidity of the department of veterans affairs housing loan program 7a7 ,report ,not later than one year after the date of the enactment of this ,act1 the ,secretary of ,housing and ,urban ,development and the ,president of the ,ginnie ,mae shall submit to the appropriate committees of ,congress a report on the liquidity of the housing loan program under chapter #cg of title #ch1 ,united ,states ,code1 in the secondary mortgage market1 which shall-- 7#a7 assess the loans provided under that chapter that collateralize mortgage-backed securities that are guaranteed by ,ginnie ,mae2 and 7#b7 include recommendations for actions that ,ginnie ,mae should take to ensure that the liquidity of that housing loan program is maintained4 7b7 ,definitions ,in this section3 7#a7 ,appropriate committees of congress ,the term appropriate committees of ,congress means-- 7,a7 the ,committee on ,veterans' ,affairs and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate2 and 7,b7 the ,committee on ,veterans' ,affairs and the ,committee on ,financial ,services of the ,house of ,representatives4 7#b7 ,ginnie mae ,the term ,ginnie ,mae means the ,government ,national ,mortgage ,association4 #e4 ,annual report on document disclosure and consumer education ,not less frequently than once each year1 the ,secretary of ,veterans ,affairs shall issue a publicly available report that-- 7#a7 examines1 with respect to loans provided to veterans under chapter #cg of title #ch1 ,united ,states ,code-- 7,a7 the refinancing of fixed-rate mortgage loans to adjustable rate mortgage loans2 7,b7 whether veterans are informed of the risks and disclosures associated with that refinancing2 and 7,c7 whether advertising materials for that refinancing are clear and do not contain misleading statements or assertions2 and 7#b7 includes findings based on any complaints received by veterans and on an ongoing assessment of the refinancing market by the ,secretary4