,,ii #aahth ,,congress #b;d ,session ,s4 #cgbh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #a1 #bjbd,mr4 ,tester 7for himself and ,mr4 ,brown7 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 modify the administration of housing loans of the ,department of ,veterans ,affairs to prevent or resolve default under such loans1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,veterans ,housing ,stability ,act of #bjbd4 #b4 ,modification of administration of housing loans of ,department of ,veterans ,affairs to prevent or resolve default 7a7 ,powers of ,secretary ,section #cgbj of title #ch1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7f71 by striking forebearance and inserting forbearance2 and 7#b7 by adding at the end the following new subsection3 7i7 7#a7 ,notwithstanding the provisions of any other law1 including section #eja7;d7 of this title1 the ,secretary may1 in response to a national emergency declared by the ,president under the ,national ,emergencies ,act 7#ej ,u4,s4,c4 #afja et seq471 a major disaster declared by the ,president under section #dja of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eagj71 or a widespread and significant crisis as determined by the ,secretary1 take any of the following actions as the ,secretary considers reasonably necessary to further the purposes of this chapter3 7,a7 ,impose a moratorium on the foreclosure of any loan guaranteed1 insured1 made1 or held by the ,secretary4 7,b7 ,impose a moratorium on any possessory action arising from the foreclosure of any such loan4 7,c7 ,impose a period of forbearance and establish related requirements with respect to any such loan4 7#b7 7,a7 ,no moratorium or period of forbearance may be imposed under paragraph 7#a7 for more than #ahj days unless the ,secretary extends such moratorium or period of forbearance as provided in subparagraph 7,a74 7,b7 ,the ,secretary may extend a moratorium or period of forbearance imposed under paragraph 7#a71 or any previous extension of such a moratorium or period of forbearance1 if the ,secretary1 not fewer than #cj days before extending such moratorium1 period of forbearance1 or previous extension-- 7i7 notifies ,congress of the extension2 and 7ii7 publishes notice of the extension in the ,federal ,register4 4 7b7 ,partial claim program ,subchapter ,,iii of chapter #cg of such title is amended by inserting after section #cgbb the following new section3 #cgbc4 ,partial ,claim ,program 7a7 ,in general ,the ,secretary may establish a program under this section1 to be known as the ,partial ,claim ,program1 under which the ,secretary may make a partial claim with respect to a loan guaranteed under this chapter if the ,secretary determines that such loan is in default or faces imminent default4 7b7 ,partial claim defined ,in this section1 the term partial claim1 with respect to a loan guaranteed under this chapter1 means the purchase by the ,secretary of a portion of indebtedness under the guaranteed loan1 under which-- 7#a7 the ,secretary pays the holder of the guaranteed loan the amount of indebtedness the ,secretary determines necessary to help prevent or resolve a default2 7#b7 the borrower of the guaranteed loan enters into a noninterest-bearing loan agreement to repay the ,secretary at the end of the period of the guaranteed loan2 and 7#c7 the ,secretary receives a secured interest in the property1 subordinate to the first lien guaranteed loan1 serving as collateral for the guaranteed loan4 7c7 ,administration of partial claim 7#a7 ,amount of claim ,the amount of a partial claim under this section with respect to a loan guaranteed under this chapter may not exceed #cj percent of the unpaid principal balance of the guaranteed loan as of the date that the initial partial claim is made4 7#b7 ,application of claim ,a holder of a loan guaranteed under this chapter who receives a partial claim under this section with respect to such loan shall apply the payment first to arrearages1 if any1 on the guaranteed loan1 which may include any additional costs 7such as taxes1 insurance premiums1 or homeowner's dues7 the ,secretary determines necessary to prevent or resolve a default4 7#c7 ,no advance on loan guaranty ,the ,secretary may not structure a partial claim under this section as an advance on a loan guaranty provided under this chapter4 7#d7 ,expenses ,expenses related to a partial claim under this section1 including administrative expenses associated with such partial claim1 may not be charged to the borrower of the guaranteed loan with respect to which the partial claim is paid4 7d7 ,requirements of loan holder 7#a7 ,agent of ,secretary ,the ,secretary may require the holder of a loan guaranteed under this chapter who receives a partial claim under this section to service the partial claim as an agent of the ,secretary4 7#b7 ,establishment of claim ,the ,secretary may require the holder of a loan guaranteed under this chapter who receives a partial claim under this section to take any actions necessary to establish the partial claim1 including preparing1 executing1 transmitting1 receiving1 and recording loan documents4 7#c7 ,compensation of holder ,the ,secretary shall compensate the holder of a loan guaranteed under this chapter who receives a partial claim under this section appropriately1 as determined by the ,secretary1 for the services required of such holder under this subsection4 7#d7 ,exercise of powers ,the ,secretary may exercise the authority of the ,secretary under this subsection without regard to any other provision of law not enacted expressly in limitation of this section that would otherwise govern the expenditure of public funds4 7e7 ,default and foreclosure 7#a7 ,default 7,a7 ,in general ,notwithstanding section #cgjc7;e7 of this title1 an individual who defaults under a partial claim made under this section shall be liable to the ,secretary for any loss suffered by the ,secretary resulting from such default1 and such loss may be recovered in the same manner as any other debt due the ,united ,states4 7,b7 ,reduction of entitlement ,in the event of default by an individual under a partial claim made under this section1 the ,secretary may reduce the aggregate amount of guaranty or insurance housing loan entitlement available to the individual under this chapter4 7#b7 ,foreclosure ,notwithstanding section #bdaj7;c7 of title #bh1 an action to foreclose a lien held by the ,united ,states arising under a partial claim made under this section shall follow foreclosure procedures in accordance with ,state or local law where the property involved is located4 7f7 ,decisions by the ,secretary 7#a7 ,sole discretion ,any partial claim under this section shall be made in the sole discretion of the ,secretary and on terms and conditions acceptable to the ,secretary that are consistent with this section4 7#b7 ,final and conclusive ,any decision by the ,secretary under this section is final and conclusive and is not subject to judicial review4 7#c7 ,affect on provision of benefits ,for purposes of section #eaa of this title1 any decision under this section shall not be treated as a decision under a law that affects the provision of benefits4 7g7 ,compliance 7#a7 ,processing payments ,the ,secretary may establish standards for processing payments under this section 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 ,secretary4 7#b7 ,audits ,the ,secretary shall carry out1 on a random-sampling basis1 post-payment audits to ensure compliance with all requirements described in paragraph 7#a74 7h7 ,application to certain loans 7#a7 ,in general ,with respect to loans described in paragraph 7#b71 the ,secretary may-- 7,a7 issue administrative guidance to make partial claims relating to such loans available under this section before prescribing regulations2 and 7,b7 establish through such guidance additional requirements applicable to such partial claims1 which shall include the prohibition under subsection 7c77#d74 7#b7 ,loan described ,a loan described in this paragraph is a loan that the ,secretary determines was in default as of the date of the enactment of the ,veterans ,housing ,stability ,act of #bjbd4 7#c7 ,termination ,the ,secretary may not accept a request for a partial claim under this subsection after ,december #ca1 #bjbe4 7i7 ,rule of construction ,nothing in this section shall be construed to limit the authority of the ,secretary under subsections 7a7 and 7d7 of section #cgcb of this title4 4 7c7 ,civil penalties ,such subchapter is further amended by inserting after section #cgbc1 as added by subsection 7b71 the following new section3 #cgbd4 ,civil penalties with respect to loan holders 7a7 ,in general ,any holder of a loan guaranteed under this chapter that knowingly and materially makes a false statement under section #cgbc or #cgcb of this title shall be liable to the ,united ,states ,government for a civil penalty equal to the greater of-- 7#a7 two times the amount of the loss suffered by the ,secretary2 or 7#b7 another appropriate amount determined by the ,secretary1 not to exceed #bg1hid4 7b7 ,recovery ,a civil penalty under this section may be recovered in the same manner as any other debt due the ,united ,states4 7c7 ,additional charges ,in assessing a civil penalty under this section1 the ,secretary may charge administrative costs1 fees1 and interest1 as appropriate1 in a manner similar to the interest and administrative costs charged under section #ecae of this title4 7d7 ,determinations ,all determinations necessary to carry out this section shall be made by the ,secretary4 4 7d7 ,procedure on default ,section #cgcb of such title is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#a71 by striking obligation each place it appears and inserting loan2 7,b7 in paragraph 7#b7-- 7i7 by amending subparagraph 7,a7 to read as follows3 7,a7 ,the ,secretary may1 upon such terms and conditions as determined by the ,secretary-- 7i7 pay the holder of a loan guaranteed under this chapter an amount necessary to avoid the foreclosure of such loan2 7ii7 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 loan2 and 7iii7 require the holder of the loan to take any actions necessary to carry out this paragraph1 including preparing1 executing1 transmitting1 receiving1 and recording documents1 and requiring the holder of the loan to place the loan in forbearance4 2 7ii7 in subparagraph 7,b71 by striking obligation each place it appears and inserting housing loan2 and 7iii7 by adding at the end the following new subparagraphs3 7,c7 7i7 ,any decision by the ,secretary under this paragraph is final and conclusive and is not subject to judicial review4 7ii7 ,for purposes of section #eaa of this title1 any decision under this paragraph shall not be treated as a decision under a law that affects the provision of benefits4 7,d7 7i7 ,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 ,secretary4 7ii7 ,the ,secretary shall carry out1 on a random-sampling basis1 post-payment audits to ensure compliance with all requirements described in clause 7i74 2 and 7,c7 in paragraph 7#e71 by striking obligation and inserting loan2 7#b7 in subsection 7c77#aj77;,b77i71 by striking forebearance each place it appears and inserting forbearance2 and 7#c7 by adding at the end the following new subsection3 7d7 ,the ,secretary may prescribe loss mitigation procedures1 including a mandatory sequence in which the holder of a loan guaranteed under this chapter shall offer loss mitigation options to veterans1 to help prevent the foreclosure of any such loan4 4 7e7 ,clerical amendments ,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 #cgbb the following new items3 #cgbc4 ,partial ,claim ,program4 #cgbd4 ,civil penalties with respect to loan holders4 4