,,ib ,union ,calendar ,no4 #gg #aaith   
,,congress  #ast ,session  ,h4 ,r4 #ahae
 ,report ,no4 #aai-ajd ,,in ,,the       
,,house ,,of ,,representatives  ,march  
#c1 #bjbe,mr4 ,van ,orden introduced the
 following bill2 which was referred to  
the ,committee on ,veterans' ,affairs   
,may #ai1 #bjbe,reported with an        
amendment1 committed to the ,committee  
of the ,whole ,house on the ,state of   
the ,union1 and ordered to be           
printed,strike out all after the        
enacting clause and insert the part     
printed in italic,for text of introduced
 bill1 see copy of bill as introduced on
 ,march #c1 #bjbe  ,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 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     
7c7-- 7,a7 in paragraph 7#a71 in the    
matter preceding subparagraph 7,a71 by  
striking subsection-- and inserting     
subsection32 and  7,b7 in paragraph     
7#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#b71 7#c71 7#d71
 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  
,in general ,subchapter ,,iii of chapter
 #cg of title #ch1 ,united ,states      
,code1 is amended by adding at the end  
the following new section3  #cgcg4      
,partial ,claim ,program  7a7           
,establishment ,the ,secretary 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 this chapter2  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      
subsection1 with respect to a loan      
described in subsection 7a71 is the     
purchase by the ,secretary of a portion 
of indebtedness under the loan1 through 
a transaction under which the           
,secretary-- 7#a7 pays to the holder of 
the loan the amount of indebtedness1    
subject to subsection 7c71 that the     
,secretary determines necessary to help 
prevent or resolve a default2 and  7#b7 
receives a secured interest in the      
property that serves as collateral for  
the guaranteed loan1 which is           
subordinate to the first lien guaranteed
 loan for such property4  7c7           

,administration of partial claim  7#a7  
7,a7 ,subject to subparagraph 7,b71 the 
amount of a partial claim under this    
section with respect to a loan          
guaranteed described in subsection 7a7  
may not exceed #be percent of the unpaid
 principal balance of the loan on the   
date on which the partial claim is made4
  7,b7 ,in the case of an individual who
 failed to make a payment on a loan     
guaranteed under this chapter during the
 period beginning on ,march #a1 #bjbj   
and ending on ,may #a1 #bjbe1 the amount
 of a partial claim under this section  
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 7,a7       
,subject to subparagraph 7,b71 the      
,secretary may make only one partial    
claim per loan4  7,b7 ,the ,secretary   
may make an additional partial claim on 
a loan guaranteed under this chapter in 
the case of an individual who failed to 
make a payment on such loan during-- 7i7

 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 #eagj72 or  7ii7 the period of
 #abj days following such a major       
disaster4  7#c7 ,an amount paid to the  
holder of a loan as a partial claim--   
7,a7 shall not count against the amount 
of a loan that may otherwise be         
guaranteed under this chapter2 and  7,b7
 may not be applied to the portion of   
the loan that is guaranteed under this  
chapter4  7#d7 ,a holder of a loan      
guaranteed under such chapter for which 
the ,secretary makes a partial claim    
under this section shall apply the      
amount paid by the ,secretary for the   
partial claim first to arrearages1 if   
any1 on the guaranteed loan4 ,such      
arrearages 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 ,the

 ,secretary may enter into a contract   
with an appropriate entity for the      
service of a partial claim made by the  
,secretary under this section4 ,any such
 contract shall provide that such entity
 shall provide quarterly statements to  
the holder of the loan for which the    
,secretary makes the partial claim4  7d7
 ,requirements of loan holder  7#a7 ,the
 ,secretary may require the holder of a 
loan for which the ,secretary makes 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#b7 ,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 ,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 7,a7     
,notwithstanding section #cgjc7;e7 of   
this title1 an individual who defaults  
on a loan for which the ,secretary makes
 a partial claim made under this section
 shall be liable to the ,secretary for  
any loss suffered by the ,secretary     
resulting from such default4 ,such a    
loss may be recovered in the same manner
 as any other debt due the ,united      
,states4  7,b7 ,in the event of default 
by an individual on a loan for which the
 ,secretary makes 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 ,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 ,any 
partial claim made 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 ,any decision by the ,secretary    
under this section is final and         
conclusive and is not subject to        
judicial review4  7#c7 ,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 ,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 ,the ,secretary shall 
carry out1 on a random-sampling basis1  

post-payment audits to ensure compliance
 with all requirements under paragraph  
7#a74  7h7 ,guidance with respect to    
certain loans  7#a7 ,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 ,a loan     
described in this paragraph is a loan   
that the ,secretary determines was in   
default on the date of the enactment of 
this section4  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  7j7   
,termination ,the ,secretary may not    
make a partial claim under this section 
after the date that is five years after 
the date of the enactment of this       
section4  4  7b7 ,clerical amendment    

,the table of sections at the beginning 
of such chapter is amended by inserting 
after the item relating to section #cgcf
 the following new item3  #cgcg4        
,partial ,claim ,program4  4  #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  #e4 ,increase of
 authorization of appropriations for    
comprehensive service programs for      

homeless veterans ,section #bjaf of     
title #ch1 ,united ,states ,code1 is    
amended-- 7#a7 in paragraph 7#g71 by    
striking fiscal year #bjae and each     
subsequent fiscal year and inserting    
each of fiscal years #bjae through      
#bjbd2 and  7#b7 by adding at the end   
the following new paragraphs3  7#h7     
#cdd1jjj1jjj for each of fiscal years   
#bjbe and #bjbf4  7#i7 #beg1gjj1jjj for 
each fiscal year thereafter4  4  ,may   
#ai1 #bjbe,reported with an amendment1  
committed to the ,committee of the      
,whole ,house on the ,state of the      
,union1 and ordered to be printed