,i  #aaith ,,congress  #ast ,session    
,h4 ,r4 #ahae  ,,in ,,the ,,house ,,of  
,,representatives  ,march #c1 #bjbe,mr4 
,van ,orden introduced the following    
bill2 which was referred to the         
,committee on ,veterans' ,affairs  ,a   
,,bill  ,to amend title #ch1 ,united    
,states ,code1 to authorize the         
,secretary of ,veterans ,affairs to take
 certain actions in the case of a       
default on a home loan guaranteed by the
 ,secretary1 and for other purposes4    
#a4 ,short title ,this ,act may be cited
 as the ,,va ,home ,loan ,program       
,reform ,act4  #b4 ,authority of the    
,secretary of ,veterans ,affairs to take
 certain actions in the case of a       
default on a home loan guaranteed by the
 ,secretary  7a7 ,in general ,section   
#cgcb of title #ch1 ,united ,states     
,code1 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 under 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 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 shall  
prescribe loss mitigation procedures1   

including a mandatory sequence in which 
the holder of a loan guaranteed under   
this chapter shall offer loss mitigation
 options 7including an option to enter  
into a partial claim agreement under the
 ,,va ,home ,loan ,program ,reform ,act7
 to a veteran1 to help prevent the      
foreclosure of such loan4 ,the          
,secretary may not purchase an entire   
such loan until the veteran has         
completed such sequence4  4  7b7        
,relationship to other powers of        
,secretary ,section #cgbj of such title 
is amended-- 7#a7 in subsection 7a71 by 
striking ,notwithstanding and inserting 
,except as provided in subsection 7h71  
notwithstanding2  7#b7 by redesignating 
subsections 7f7 through 7h7 as          
subsections 7e7 through 7g71            
respectively2 and  7#c7 by adding at the
 end the following new subsection 7h73  
7h7 ,the ,secretary may not take any    
action under paragraph 7#b717c717d71 or 
7#e7 of subsection 7a7 with respect to a
 loan guaranteed under this chapter     

before the completion of the sequence of
 mitigation options offered to the      
veteran to whom the loan is made under  
section #cgcb7;d7 of this title4  4  #c4
 ,partial ,claim ,program of the        
,department of ,veterans ,affairs  7a7  
,establishment ,the ,secretary of       
,veterans ,affairs shall carry out a    
program1 to be known as the ,partial    
,claim ,program1 under which the        
,secretary may make a partial claim1    
described in subsection 7b71 with       
respect to a loan-- 7#a7 guaranteed     
under chapter #cg of title #ch1 ,united 
,states ,code2  7#b7 regarding the      
primary residence of the borrower2 and  
7#c7 that the ,secretary determines is  
in default or at imminent risk of       
default4  7b7 ,partial claim described  
,a partial claim described in this      
subsection is the purchase by the       
,secretary of a portion of indebtedness 
under the guaranteed loan1 under which--
 7#a7 the borrower of the guaranteed    
loan enters into an agreement under     

subsection 7c72  7#b7 the ,secretary    
pays the holder of the guaranteed loan  
the amount of indebtedness1 subject to  
subsection 7d71 that the ,secretary     
determines necessary to help prevent or 
resolve a default2 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
 ,agreement between borrower and        
,secretary ,an agreement under this     
subsection is an agreement by the       
borrower of the guaranteed loan to repay
 the ,secretary the amount determined   
under subsection 7b77#b7 at the end of  
the period of such guaranteed loan1     
subject to the following annual         
interest3 7#a7 ,if the borrower agrees  
to make monthly payments beginning not  
later than three years after the date on
 which the ,secretary makes the payment 
under subsection 7b77#b71 #j percent4   
7#b7 ,if the borrower does not agree to 
a repayment plan under paragraph 7#a71  

or fails to comply with such a repayment
 plan1 #j4e percent4  7d7               
,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 such 
chapter may not exceed #bj percent of   
the unpaid principal balance of the     
guaranteed loan on the date on which the
 partial claim is made4  7#b7 ,one      
partial claim per loan ,the ,secretary  
may make only one partial claim per     
loan4  7#c7 ,not an advance ,the        
,secretary may not structure a partial  
claim as an advance on a new loan       
guaranteed under such chapter4  7#d7    
,application of claim ,a holder of a    
loan guaranteed under such 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#e7 ,authority to  
contract ,the ,secretary may enter into 
a contract with an entity for service of
 a partial claim under this section4    
,such entity shall provide quarterly    
statements to the borrower4  7e7        
,requirements of loan holder  7#a7      
,establishment of claim ,the ,secretary 
may require the holder of a loan1       
regarding which the ,secretary makes a  
partial claim under this section1 to    
take any actions necessary to establish 
the partial claim1 including preparing1 
executing1 transmitting1 receiving1 and 
recording loan documents4  7#b7         
,compensation of holder ,the ,secretary 
shall compensate the holder of such a   
loan appropriately1 as determined by the
 ,secretary1 for the services required  
of such holder under this subsection4   
7#c7 ,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  7f7  
,default and foreclosure  7#a7 ,default 
7,a7 ,in general ,notwithstanding       
section #cgjc7;e7 of title #ch1 ,united 
,states ,code1 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 such chapter4  7#b7 ,foreclosure  
,notwithstanding section #bdaj7;c7 of   
title #bh1 ,united ,states ,code1 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 
7g7 ,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 ,effect on provision of benefits   
,for purposes of section #eaa of title  
#ch1 ,united ,states ,code1 any decision
 under this section shall not be treated
 as a decision under a law that affects 
the provision of benefits4  7h7         
,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 such  

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  7i7 ,guidance with     
respect to certain loans  7#a7 ,in      
general ,with respect to a loan         
described in paragraph 7#b71 the        
,secretary may-- 7,a7 before prescribing
 regulations1 issue administrative      
guidance regarding the making of a      
partial claim relating to such loan2 and
  7,b7 establish1 through such guidance1
 additional requirements applicable to  
such a partial claim4  7#b7 ,loan       
described ,a loan described in this     
paragraph is a loan that the ,secretary 
determines was in default on the date of
 the enactment of this ,act4  7j7 ,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 title #ch1 ,united ,states ,code1 as
 amended by section #b of this ,act4    
7k7 ,termination ,the ,secretary may not
 make a partial claim under this section
 after ,september #cj1 #bjbg4  #d4      
,strategy of the ,secretary of ,veterans
 ,affairs regarding the effect of       
certain litigation ,not later than #ij  
days after the date of the enactment of 
this ,act1 the ,secretary of ,veterans  
,affairs shall submit to the ,committees
 on ,veterans' ,affairs of the ,senate  
and ,house of ,representatives a report 
on the strategy of the ,secretary to    
ensure that a veteran who seeks to      
purchase a home with a loan guaranteed  
under chapter #cg of title #ch1 ,united 
,states ,code1 is not at a disadvantage 
when attempting to secure representation
 by a real estate agent or broker4 ,such
 strategy may include amendments to     
section #cf4dcac of title #ch1 ,code of 
,federal ,regulations4