,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #ahae  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,m>* #c1 #bjbe,mr4    
,van ,ord5 introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,vet]ans'   
,affairs  ,a ,,bill  ,to am5d title #ch1
 ,unit$ ,/ates ,code1 to au?orize !     
,secret>y ( ,vet]ans ,affairs to take   
c]ta9 actions 9 ! case ( a default on a 
home loan gu>ante$ by ! ,secret>y1 & =  
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,,va ,home ,loan       
,program ,re=m ,act4  #b4 ,au?ority ( ! 
,secret>y ( ,vet]ans ,affairs to take   
c]ta9 actions 9 ! case ( a default on a 
home loan gu>ante$ by ! ,secret>y  7a7  
,9 g5]al ,section #cgcb ( title #ch1    
,unit$ ,/ates ,code1 is am5d$-- 7#a7 9  
subsection 7a7-- 7,a7 9 p>agraph 7#a71  
by /rik+ obligation ea* place x appe>s &
 ins]t+ loan2  7,b7 9 p>agraph 7#b7--   
7i7 by am5d+ subp>agraph 7,a7 to read z 
foll[s3  7,a7 ,! ,secret>y may1 "u t]ms 
& conditions z det]m9$ 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 & 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 %all      
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 7includ+ an     
option to ent] into a p>tial claim      
agreem5t "u ! ,,va ,home ,loan ,program 
,re=m ,act7 to a vet]an1 to help prev5t 
! =eclosure ( su* loan4 ,! ,secret>y may
 n pur*ase an entire su* loan until !   
vet]an has complet$ su* sequ5ce4  4  7b7
 ,relation%ip to o!r p[]s ( ,secret>y   
,section #cgbj ( su* title is am5d$--   
7#a7 9 subsection 7a71 by /rik+ ,not)/&+

 & ins]t+ ,except z provid$ 9 subsection
 7h71 not)/&+2  7#b7 by r$esignat+      
subsections 7f7 ?r\gh 7h7 z subsections 
7e7 ?r\gh 7g71 respectively2 &  7#c7 by 
add+ at ! end ! foll[+ new subsection   
7h73  7h7 ,! ,secret>y may n take any   
action "u p>agraph 7#b717c717d71 or 7#e7
 ( subsection 7a7 ) respect to a loan   
gu>ante$ "u ?is *apt] be=e ! completion 
( ! sequ5ce ( mitigation options (f]$ to
 ! vet]an to :om ! loan is made "u      
section #cgcb7;d7 ( ?is title4  4  #c4  
,p>tial ,claim ,program ( ! ,dep>tm5t ( 
,vet]ans ,affairs  7a7 ,e/abli%m5t ,!   
,secret>y ( ,vet]ans ,affairs %all c>ry 
out a program1 to be kn[n z ! ,p>tial   
,claim ,program1 "u :i* ! ,secret>y may 
make a p>tial claim1 describ$ 9         
subsection 7b71 ) respect to a loan--   
7#a7 gu>ante$ "u *apt] #cg ( title #ch1 
,unit$ ,/ates ,code2  7#b7 reg>d+ !     
prim>y resid5ce ( ! borr[]2 &  7#c7 t ! 
,secret>y det]m9es is 9 default or at   
imm95t risk ( default4  7b7 ,p>tial     
claim describ$ ,a p>tial claim describ$ 

9 ?is subsection is ! pur*ase by !      
,secret>y ( a portion ( indebt$ness "u !
 gu>ante$ loan1 "u :i*-- 7#a7 ! borr[] (
 ! gu>ante$ loan ent]s into an agreem5t 
"u subsection 7c72  7#b7 ! ,secret>y    
pays ! hold] ( ! gu>ante$ loan ! am\nt (
 indebt$ness1 subject to subsection 7d71
 t ! ,secret>y det]m9es necess>y to help
 prev5t or resolve a default2 &  7#c7 ! 
,secret>y receives a secur$ int]e/ 9 !  
prop]ty1 subord9ate to ! fir/ li5       
gu>ante$ loan1 s]v+ z collat]al = !     
gu>ante$ loan4  7c7 ,agreem5t betwe5    
borr[] & ,secret>y ,an agreem5t "u ?is  
subsection is an agreem5t by ! borr[] ( 
! gu>ante$ loan to repay ! ,secret>y !  
am\nt det]m9$ "u subsection 7b77#b7 at !
 end ( ! p]iod ( su* gu>ante$ loan1     
subject to ! foll[+ annual int]e/3 7#a7 
,if ! borr[] agrees to make mon?ly      
paym5ts beg9n+ n lat] ?an ?ree ye>s aft]
 ! date on :i* ! ,secret>y makes !      
paym5t "u subsection 7b77#b71 #j p]c5t4 
7#b7 ,if ! borr[] does n agree to a     
repaym5t plan "u p>agraph 7#a71 or fails

 to comply ) su* a repaym5t plan1 #j4e  
p]c5t4  7d7 ,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 su* *apt] may n     
exce$ #bj p]c5t ( ! unpaid pr9cipal     
balance ( ! gu>ante$ loan on ! date on  
:i* ! p>tial claim is made4  7#b7 ,"o   
p>tial claim p] loan ,! ,secret>y may   
make only "o p>tial claim p] loan4  7#c7
 ,n an advance ,! ,secret>y may n       
/ructure a p>tial claim z an advance on 
a new loan gu>ante$ "u su* *apt]4  7#d7 
,application ( claim ,a hold] ( a loan  
gu>ante$ "u su* *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#e7 ,au?ority to contract ,!         
,secret>y may ent] into a contract ) an 
entity = s]vice ( a p>tial claim "u ?is 

section4 ,su* entity %all provide       
qu>t]ly /atem5ts to ! borr[]4  7e7      
,requirem5ts ( loan hold]  7#a7         
,e/abli%m5t ( claim ,! ,secret>y may    
require ! hold] ( a loan1 reg>d+ :i* !  
,secret>y makes a p>tial claim "u ?is   
section1 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#b7 ,comp5sation (    
hold] ,! ,secret>y %all comp5sate !     
hold] ( su* a loan appropriately1 z     
det]m9$ by ! ,secret>y1 = ! s]vices     
requir$ ( su* hold] "u ?is subsection4  
7#c7 ,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  7f7 
,default & =eclosure  7#a7 ,default     
7,a7 ,9 g5]al ,not)/&+ section #cgjc7;e7
 ( title #ch1 ,unit$ ,/ates ,code1 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 su* *apt]4 
7#b7 ,=eclosure ,not)/&+ section        
#bdaj7;c7 ( title #bh1 ,unit$ ,/ates    
,code1 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  7g7 ,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 ,effect on provision (    
b5efits ,= purposes ( section #eaa (    
title #ch1 ,unit$ ,/ates ,code1 any     
decision "u ?is section %all n be treat$
 z a decision "u a law t affects !      
provision ( b5efits4  7h7 ,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 su* *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   
7i7 ,guidance ) respect to c]ta9 loans  
7#a7 ,9 g5]al ,) respect to a loan      
describ$ 9 p>agraph 7#b71 ! ,secret>y   
may-- 7,a7 be=e prescrib+ regulations1  
issue adm9i/rative guidance reg>d+ !    
mak+ ( a p>tial claim relat+ to su*     
loan2 &  7,b7 e/abli%1 ?r\gh su*        
guidance1 additional requirem5ts        

applicable to su* a p>tial claim4  7#b7 
,loan describ$ ,a loan describ$ 9 ?is   
p>agraph is a loan t ! ,secret>y        
det]m9es 0 9 default on ! date ( !      
enactm5t ( ?is ,act4  7j7 ,rule (       
con/ruction ,no?+ 9 ?is section %all be 
con/ru$ to limit ! au?ority ( !         
,secret>y "u subsections 7a7 & 7d7 (    
section #cgcb ( title #ch1 ,unit$ ,/ates
 ,code1 z am5d$ by section #b ( ?is     
,act4  7k7 ,t]m9ation ,! ,secret>y may n
 make a p>tial claim "u ?is section aft]
 ,septemb] #cj1 #bjbg4  #d4 ,/rategy ( !
 ,secret>y ( ,vet]ans ,affairs reg>d+ ! 
effect ( c]ta9 litigation ,n lat] ?an   
#ij days aft] ! date ( ! enactm5t ( ?is 
,act1 ! ,secret>y ( ,vet]ans ,affairs   
%all submit to ! ,committees on         
,vet]ans' ,affairs ( ! ,s5ate & ,h\se ( 
,repres5tatives a report on ! /rategy ( 
! ,secret>y to ensure t a vet]an :o     
seeks to pur*ase a home ) a loan        
gu>ante$ "u *apt] #cg ( title #ch1      
,unit$ ,/ates ,code1 is n at a          
disadvantage :5 attempt+ to secure      

repres5tation by a real e/ate ag5t or   
brok]4 ,su* /rategy may include am5dm5ts
 to section #cf4dcac ( title #ch1 ,code 
( ,f$]al ,regulations4