,,ii  #aah? ,,congress  #b;d ,session   
,s4 #cgbh  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,febru>y #a1 #bjbd,mr4 
,te/] 7= himself & ,mr4 ,br[n7 introduc$
 ! foll[+ bill2 :i* 0 read twice &      
ref]r$ to ! ,committee on ,vet]ans'     
,affairs  ,a ,,bill  ,to am5d title #ch1
 ,unit$ ,/ates ,code1 to modify !       
adm9i/ration ( h\s+ loans ( ! ,dep>tm5t 
( ,vet]ans ,affairs to prev5t or resolve
 default "u su* loans1 & = o!r purposes4
  #a4 ,%ort title ,?is ,act may be cit$ 
z ! ,vet]ans ,h\s+ ,/ability ,act (     
#bjbd4  #b4 ,modification ( adm9i/ration
 ( h\s+ loans ( ,dep>tm5t ( ,vet]ans    
,affairs to prev5t or resolve default   
7a7 ,p[]s ( ,secret>y ,section #cgbj (  
title #ch1 ,unit$ ,/ates ,code1 is      
am5d$-- 7#a7 9 subsection 7f71 by /rik+ 
=ebe>ance & ins]t+ =be>ance2 &  7#b7 by 
add+ at ! end ! foll[+ new subsection3  
7i7 7#a7 ,not)/&+ ! provisions ( any o!r
 law1 includ+ section #eja7;d7 ( ?is    
title1 ! ,secret>y may1 9 response to a 
national em]g5cy decl>$ by ! ,presid5t  

"u ! ,national ,em]g5cies ,act 7#ej     
,u4,s4,c4 #afja et seq471 a major disa/]
 decl>$ by ! ,presid5t "u section #dja (
 ! ,rob]t ,t4 ,/af=d ,disa/] ,relief &  
,em]g5cy ,assi/ance ,act 7#db ,u4,s4,c4 
#eagj71 or a widespread & significant   
crisis z det]m9$ by ! ,secret>y1 take   
any ( ! foll[+ actions z ! ,secret>y    
consid]s reasonably necess>y to fur!r ! 
purposes ( ?is *apt]3 7,a7 ,impose a    
moratorium on ! =eclosure ( any loan    
gu>ante$1 insur$1 made1 or held by !    
,secret>y4  7,b7 ,impose a moratorium on
 any possessory action aris+ f !        
=eclosure ( any su* loan4  7,c7 ,impose 
a p]iod ( =be>ance & e/abli% relat$     
requirem5ts ) respect to any su* loan4  
7#b7 7,a7 ,no moratorium or p]iod (     
=be>ance may be impos$ "u p>agraph 7#a7 
= m ?an #ahj days unless ! ,secret>y    
ext5ds su* moratorium or p]iod (        
=be>ance z provid$ 9 subp>agraph 7,a74  
7,b7 ,! ,secret>y may ext5d a moratorium
 or p]iod ( =be>ance impos$ "u p>agraph 
7#a71 or any previ\s ext5sion ( su* a   

moratorium or p]iod ( =be>ance1 if !    
,secret>y1 n few] ?an #cj days be=e     
ext5d+ su* moratorium1 p]iod ( =be>ance1
 or previ\s ext5sion-- 7i7 notifies     
,congress ( ! ext5sion2 &  7ii7 publi%es
 notice ( ! ext5sion 9 ! ,f$]al ,regi/]4
  4  7b7 ,p>tial claim program ,sub*apt]
 ,,iii ( *apt] #cg ( su* title is am5d$ 
by ins]t+ aft] section #cgbb ! foll[+   
new section3  #cgbc4 ,p>tial ,claim     
,program  7a7 ,9 g5]al ,! ,secret>y may 
e/abli% a program "u ?is section1 to be 
kn[n z ! ,p>tial ,claim ,program1 "u :i*
 ! ,secret>y may make a p>tial claim )  
respect to a loan gu>ante$ "u ?is *apt] 
if ! ,secret>y det]m9es t su* loan is 9 
default or faces imm95t default4  7b7   
,p>tial claim def9$ ,9 ?is section1 !   
t]m p>tial claim1 ) respect to a loan   
gu>ante$ "u ?is *apt]1 means ! pur*ase  
by ! ,secret>y ( a portion ( indebt$ness
 "u ! gu>ante$ loan1 "u :i*-- 7#a7 !    
,secret>y pays ! hold] ( ! gu>ante$ loan
 ! am\nt ( indebt$ness ! ,secret>y      
det]m9es necess>y to help prev5t or     

resolve a default2  7#b7 ! borr[] ( !   
gu>ante$ loan ent]s into a non9t]e/-be>+
 loan agreem5t to repay ! ,secret>y at !
 end ( ! p]iod ( ! gu>ante$ loan2 &     
7#c7 ! ,secret>y receives a secur$      
int]e/ 9 ! prop]ty1 subord9ate to ! fir/
 li5 gu>ante$ loan1 s]v+ z collat]al = !
 gu>ante$ loan4  7c7 ,adm9i/ration (    
p>tial claim  7#a7 ,am\nt ( claim ,!    
am\nt ( a p>tial claim "u ?is section ) 
respect to a loan gu>ante$ "u ?is *apt] 
may n exce$ #cj p]c5t ( ! unpaid        
pr9cipal balance ( ! gu>ante$ loan z ( !
 date t ! initial p>tial claim is made4 
7#b7 ,application ( claim ,a hold] ( a  
loan gu>ante$ "u ?is *apt] :o receives a
 p>tial claim "u ?is section ) respect  
to su* loan %all apply ! paym5t fir/ to 
arre>ages1 if any1 on ! gu>ante$ loan1  
:i* may include any additional co/s 7su*
 z taxes1 insurance premiums1 or        
home[n]'s dues7 ! ,secret>y det]m9es    
necess>y to prev5t or resolve a default4
  7#c7 ,no advance on loan gu>anty ,!   
,secret>y may n /ructure a p>tial claim 

"u ?is section z an advance on a loan   
gu>anty provid$ "u ?is *apt]4  7#d7     
,exp5ses ,exp5ses relat$ to a p>tial    
claim "u ?is section1 includ+           
adm9i/rative exp5ses associat$ ) su*    
p>tial claim1 may n be *>g$ to ! borr[] 
( ! gu>ante$ loan ) respect to :i* !    
p>tial claim is paid4  7d7 ,requirem5ts 
( loan hold]  7#a7 ,ag5t ( ,secret>y ,! 
,secret>y may require ! hold] ( a loan  
gu>ante$ "u ?is *apt] :o receives a     
p>tial claim "u ?is section to s]vice ! 
p>tial claim z an ag5t ( ! ,secret>y4   
7#b7 ,e/abli%m5t ( claim ,! ,secret>y   
may require ! hold] ( a loan gu>ante$ "u
 ?is *apt] :o receives a p>tial claim "u
 ?is section to take any actions        
necess>y to e/abli% ! p>tial claim1     
includ+ prep>+1 execut+1 transmitt+1    
receiv+1 & record+ loan docum5ts4  7#c7 
,comp5sation ( hold] ,! ,secret>y %all  
comp5sate ! hold] ( a loan gu>ante$ "u  
?is *apt] :o receives a p>tial claim "u 
?is section appropriately1 z det]m9$ by 
! ,secret>y1 = ! s]vices requir$ ( su*  

hold] "u ?is subsection4  7#d7 ,ex]cise 
( p[]s ,! ,secret>y may ex]cise !       
au?ority ( ! ,secret>y "u ?is subsection
 )\t reg>d to any o!r provision ( law n 
enact$ expressly 9 limitation ( ?is     
section t w\ld o!rwise gov]n !          
exp5diture ( public funds4  7e7 ,default
 & =eclosure  7#a7 ,default  7,a7 ,9    
g5]al ,not)/&+ section #cgjc7;e7 ( ?is  
title1 an individual :o defaults "u a   
p>tial claim made "u ?is section %all be
 liable to ! ,secret>y = any loss suff]$
 by ! ,secret>y result+ f su* default1 &
 su* loss may be recov]$ 9 ! same mann] 
z any o!r debt due ! ,unit$ ,/ates4     
7,b7 ,r$uction ( entitlem5t ,9 ! ev5t ( 
default by an individual "u a p>tial    
claim made "u ?is section1 ! ,secret>y  
may r$uce ! aggregate am\nt ( gu>anty or
 insurance h\s+ loan entitlem5t         
available to ! individual "u ?is *apt]4 
7#b7 ,=eclosure ,not)/&+ section        
#bdaj7;c7 ( title #bh1 an action to     
=eclose a li5 held by ! ,unit$ ,/ates   
aris+ "u a p>tial claim made "u ?is     

section %all foll[ =eclosure proc$ures 9
 accordance ) ,/ate or local law :]e !  
prop]ty involv$ is locat$4  7f7         
,decisions by ! ,secret>y  7#a7 ,sole   
discretion ,any p>tial claim "u ?is     
section %all be made 9 ! sole discretion
 ( ! ,secret>y & on t]ms & conditions   
acceptable to ! ,secret>y t are consi/5t
 ) ?is section4  7#b7 ,f9al & conclusive
 ,any decision by ! ,secret>y "u ?is    
section is f9al & conclusive & is n     
subject to judicial review4  7#c7       
,affect on provision ( b5efits ,=       
purposes ( section #eaa ( ?is title1 any
 decision "u ?is section %all n be      
treat$ z a decision "u a law t affects !
 provision ( b5efits4  7g7 ,compliance  
7#a7 ,process+ paym5ts ,! ,secret>y may 
e/abli% /&>ds = process+ paym5ts "u ?is 
section bas$ on a c]tification by a     
hold] ( a loan gu>ante$ "u ?is *apt] t !
 hold] has compli$ ) all applicable     
requirem5ts e/abli%$ by ! ,secret>y4    
7#b7 ,audits ,! ,secret>y %all c>ry out1
 on a r&om-sampl+ basis1 po/-paym5t     

audits to ensure compliance ) all       
requirem5ts describ$ 9 p>agraph 7#a74   
7h7 ,application to c]ta9 loans  7#a7 ,9
 g5]al ,) respect to loans describ$ 9   
p>agraph 7#b71 ! ,secret>y may-- 7,a7   
issue adm9i/rative guidance to make     
p>tial claims relat+ to su* loans       
available "u ?is section be=e prescrib+ 
regulations2 &  7,b7 e/abli% ?r\gh su*  
guidance additional requirem5ts         
applicable to su* p>tial claims1 :i*    
%all include ! prohibition "u subsection
 7c77#d74  7#b7 ,loan describ$ ,a loan  
describ$ 9 ?is p>agraph is a loan t !   
,secret>y det]m9es 0 9 default z ( !    
date ( ! enactm5t ( ! ,vet]ans ,h\s+    
,/ability ,act ( #bjbd4  7#c7 ,t]m9ation
 ,! ,secret>y may n accept a reque/ = a 
p>tial claim "u ?is subsection aft]     
,decemb] #ca1 #bjbe4  7i7 ,rule (       
con/ruction ,no?+ 9 ?is section %all be 
con/ru$ to limit ! au?ority ( !         
,secret>y "u subsections 7a7 & 7d7 (    
section #cgcb ( ?is title4  4  7c7      
,civil p5alties ,su* sub*apt] is fur!r  

am5d$ by ins]t+ aft] section #cgbc1 z   
add$ by subsection 7b71 ! foll[+ new    
section3  #cgbd4 ,civil p5alties )      
respect to loan hold]s  7a7 ,9 g5]al    
,any hold] ( a loan gu>ante$ "u ?is     
*apt] t kn[+ly & mat]ially makes a false
 /atem5t "u section #cgbc or #cgcb ( ?is
 title %all be liable to ! ,unit$ ,/ates
 ,gov]nm5t = a civil p5alty equal to !  
great] (-- 7#a7 two times ! am\nt ( !   
loss suff]$ by ! ,secret>y2 or  7#b7    
ano!r appropriate am\nt det]m9$ by !    
,secret>y1 n to exce$ #bg1hid4  7b7     
,recov]y ,a civil p5alty "u ?is section 
may be recov]$ 9 ! same mann] z any o!r 
debt due ! ,unit$ ,/ates4  7c7          
,additional *>ges ,9 assess+ a civil    
p5alty "u ?is section1 ! ,secret>y may  
*>ge adm9i/rative co/s1 fees1 & int]e/1 
z appropriate1 9 a mann] simil> to !    
int]e/ & adm9i/rative co/s *>g$ "u      
section #ecae ( ?is title4  7d7         
,det]m9ations ,all det]m9ations necess>y
 to c>ry out ?is section %all be made by
 ! ,secret>y4  4  7d7 ,proc$ure on      

default ,section #cgcb ( su* title is   
am5d$-- 7#a7 9 subsection 7a7-- 7,a7 9  
p>agraph 7#a71 by /rik+ obligation ea*  
place x appe>s & ins]t+ loan2  7,b7 9   
p>agraph 7#b7-- 7i7 by am5d+ subp>agraph
 7,a7 to read z foll[s3  7,a7 ,!        
,secret>y may1 ^u su* t]ms & conditions 
z det]m9$ by ! ,secret>y-- 7i7 pay !    
hold] ( a loan gu>ante$ "u ?is *apt] an 
am\nt necess>y to avoid ! =eclosure (   
su* loan2  7ii7 require ! hold] ( ! loan
 & ! vet]an obligat$ on ! loan to       
execute all docum5ts necess>y to ensure 
! ,secret>y obta9s a secur$ int]e/ 9 !  
prop]ty cov]$ by ! loan2 &  7iii7       
require ! hold] ( ! loan to take any    
actions necess>y to c>ry out ?is        
p>agraph1 includ+ prep>+1 execut+1      
transmitt+1 receiv+1 & record+ docum5ts1
 & requir+ ! hold] ( ! loan to place !  
loan 9 =be>ance4  2  7ii7 9 subp>agraph 
7,b71 by /rik+ obligation ea* place x   
appe>s & ins]t+ h\s+ loan2 &  7iii7 by  
add+ at ! end ! foll[+ new subp>agraphs3
  7,c7 7i7 ,any decision by ! ,secret>y 

"u ?is p>agraph is f9al & conclusive &  
is n subject to judicial review4  7ii7  
,= purposes ( section #eaa ( ?is title1 
any decision "u ?is p>agraph %all n be  
treat$ z a decision "u a law t affects !
 provision ( b5efits4  7,d7 7i7 ,!      
,secret>y may e/abli% /&>ds = process+  
paym5ts "u ?is p>agraph bas$ on a       
c]tification by a hold] ( a loan        
gu>ante$ "u ?is *apt] t ! hold] has     
compli$ ) all applicable requirem5ts    
e/abli%$ by ! ,secret>y4  7ii7 ,!       
,secret>y %all c>ry out1 on a           
r&om-sampl+ basis1 po/-paym5t audits to 
ensure compliance ) all requirem5ts     
describ$ 9 clause 7i74  2 &  7,c7 9     
p>agraph 7#e71 by /rik+ obligation &    
ins]t+ loan2  7#b7 9 subsection         
7c77#aj77;,b77i71 by /rik+ =ebe>ance ea*
 place x appe>s & ins]t+ =be>ance2 &    
7#c7 by add+ at ! end ! foll[+ new      
subsection3  7d7 ,! ,secret>y may       
prescribe loss mitigation proc$ures1    
includ+ a m&atory sequ5ce 9 :i* ! hold] 
( a loan gu>ante$ "u ?is *apt] %all (f] 

loss mitigation options to vet]ans1 to  
help prev5t ! =eclosure ( any su* loan4 
4  7e7 ,cl]ical am5dm5ts ,! table (     
sections at ! beg9n+ ( *apt] #cg ( title
 #ch1 ,unit$ ,/ates ,code1 is am5d$ by  
ins]t+ aft] ! item relat+ to section    
#cgbb ! foll[+ new items3  #cgbc4       
,p>tial ,claim ,program4 #cgbd4 ,civil  
p5alties ) respect to loan hold]s4  4