,,ib ,union ,cal5d> ,no4 #gg #aai?      
,,congress  #a/ ,session  ,h4 ,r4 #ahae 
,report ,no4 #aai-ajd ,,9 ,,! ,,h\se ,,(
 ,,repres5tatives  ,m>* #c1 #bjbe,mr4   
,van ,ord5 introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,vet]ans'   
,affairs  ,may #ai1 #bjbe,report$ ) an  
am5dm5t1 committ$ to ! ,committee ( !   
,:ole ,h\se on ! ,/ate ( ! ,union1 &    
ord]$ to be printed,strike out all aft] 
! enact+ clause & ins]t ! "p pr9t$ 9    
italic,for text ( introduc$ bill1 see   
copy ( bill z introduc$ on ,m>* #c1     
#bjbe  ,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$-- 7#a7 9  
subsection 7a7-- 7,a7 9 p>agraph 7#a71  
by /rik+ obligation ea* place x appe>s &
 ins]t+ loan2  7,b7 9 p>agraph 7#b7--   
7i7 by am5d+ subp>agraph 7,a7 to read z 
foll[s3  7,a7 ,! ,secret>y may1 "u t]ms 
& conditions det]m9$ 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 7c7--   
7,a7 9 p>agraph 7#a71 9 ! matt] prec$+  
subp>agraph 7,a71 by /rik+ subsection-- 
& ins]t+ subsection32 &  7,b7 9 p>agraph
 7#aj77;,b77i71 by /rik+ =ebe>ance ea*  
place x appe>s & ins]t+ =be>ance2 &     
7#c7 by add+ at ! end ! foll[+ new      
subsection3  7d7 ,! ,secret>y %all      
prescribe loss mitigation proc$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$esignat+      
subsections 7f7 ?r\gh 7h7 z subsections 
7e7 ?r\gh 7g71 respectively2 &  7#c7 by 
add+ at ! end ! foll[+ new subsection   
7h73  7h7 ,! ,secret>y may n take any   
action "u p>agraph 7#b71 7#c71 7#d71 or 
7#e7 ( subsection 7a7 ) respect to a    
loan gu>ante$ "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 ,9

 g5]al ,sub*apt] ,,iii ( *apt] #cg (    
title #ch1 ,unit$ ,/ates ,code1 is am5d$
 by add+ at ! end ! foll[+ new section3 
#cgcg4 ,p>tial ,claim ,program  7a7     
,e/abli%m5t ,! ,secret>y %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 
?is *apt]2  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 subsection1 ) respect to a loan   
describ$ 9 subsection 7a71 is ! pur*ase 
by ! ,secret>y ( a portion ( indebt$ness
 "u ! loan1 ?r\gh a transaction "u :i* !
 ,secret>y-- 7#a7 pays to ! hold] ( !   
loan ! am\nt ( indebt$ness1 subject to  
subsection 7c71 t ! ,secret>y det]m9es  
necess>y to help prev5t or resolve a    
default2 &  7#b7 receives a secur$      
int]e/ 9 ! prop]ty t s]ves z collat]al =
 ! gu>ante$ loan1 :i* is subord9ate to !

 fir/ li5 gu>ante$ loan = su* prop]ty4  
7c7 ,adm9i/ration ( p>tial claim  7#a7  
7,a7 ,subject to subp>agraph 7,b71 !    
am\nt ( a p>tial claim "u ?is section ) 
respect to a loan gu>ante$ describ$ 9   
subsection 7a7 may n exce$ #be p]c5t ( !
 unpaid pr9cipal balance ( ! loan on !  
date on :i* ! p>tial claim is made4     
7,b7 ,9 ! case ( an individual :o fail$ 
to make a paym5t on a loan gu>ante$ "u  
?is *apt] dur+ ! p]iod beg9n+ on ,m>*   
#a1 #bjbj & end+ on ,may #a1 #bjbe1 !   
am\nt ( a p>tial claim "u ?is section   
may n exce$ #cj p]c5t ( ! unpaid        
pr9cipal balance ( ! gu>ante$ loan z ( !
 date t ! initial p>tial claim is made4 
7#b7 7,a7 ,subject to subp>agraph 7,b71 
! ,secret>y may make only "o p>tial     
claim p] loan4  7,b7 ,! ,secret>y may   
make an additional p>tial claim on a    
loan gu>ante$ "u ?is *apt] 9 ! case ( an
 individual :o fail$ to make a paym5t on
 su* loan dur+-- 7i7 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 
#eagj72 or  7ii7 ! p]iod ( #abj days    
foll[+ su* a major disa/]4  7#c7 ,an    
am\nt paid to ! hold] ( a loan z a      
p>tial claim-- 7,a7 %all n c\nt aga9/ ! 
am\nt ( a loan t may o!rwise be gu>ante$
 "u ?is *apt]2 &  7,b7 may n be appli$  
to ! portion ( ! loan t is gu>ante$ "u  
?is *apt]4  7#d7 ,a hold] ( a loan      
gu>ante$ "u su* *apt] = :i* ! ,secret>y 
makes a p>tial claim "u ?is section %all
 apply ! am\nt paid by ! ,secret>y = !  
p>tial claim fir/ to arre>ages1 if any1 
on ! gu>ante$ loan4 ,su* arre>ages 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 ,!   
,secret>y may ent] into a contract ) an 
appropriate entity = ! s]vice ( a p>tial
 claim made by ! ,secret>y "u ?is       
section4 ,any su* contract %all provide 
t su* entity %all provide qu>t]ly       
/atem5ts to ! hold] ( ! loan = :i* !    
,secret>y makes ! p>tial claim4  7d7    

,requirem5ts ( loan hold]  7#a7 ,!      
,secret>y may require ! hold] ( a loan =
 :i* ! ,secret>y makes 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#b7 
,! ,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 ,!       
,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 
7,a7 ,not)/&+ section #cgjc7;e7 ( ?is   
title1 an individual :o defaults on a   
loan = :i* ! ,secret>y makes a p>tial   
claim made "u ?is section %all be liable
 to ! ,secret>y = any loss suff]$ by !  
,secret>y result+ f su* default4 ,su* a 
loss may be recov]$ 9 ! same mann] z any
 o!r debt due ! ,unit$ ,/ates4  7,b7 ,9 

! ev5t ( default by an individual on a  
loan = :i* ! ,secret>y makes a p>tial   
claim made "u ?is section1 ! ,secret>y  
may r$uce ! aggregate am\nt ( gu>anty or
 insurance h\s+ loan entitlem5t         
available to ! individual "u ?is *apt]4 
7#b7 ,not)/&+ section #bdaj7;c7 ( title 
#bh1 an action to =eclose a li5 held by 
! ,unit$ ,/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$4   
7f7 ,decisions by ! ,secret>y  7#a7 ,any
 p>tial claim made "u ?is section %all  
be made 9 ! sole discretion ( !         
,secret>y & on t]ms & conditions        
acceptable to ! ,secret>y t are consi/5t
 ) ?is section4  7#b7 ,any decision by !
 ,secret>y "u ?is section is f9al &     
conclusive & is n subject to judicial   
review4  7#c7 ,= purposes ( section #eaa
 ( ?is title1 any decision "u ?is       
section %all n be treat$ z a decision "u
 a law t affects ! provision ( b5efits4 
7g7 ,compliance  7#a7 ,! ,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 ,! ,secret>y %all c>ry out1 on a   
r&om-sampl+ basis1 po/-paym5t audits to 
ensure compliance ) all requirem5ts "u  
p>agraph 7#a74  7h7 ,guidance ) respect 
to c]ta9 loans  7#a7 ,) 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 
,a loan describ$ 9 ?is p>agraph is a    
loan t ! ,secret>y det]m9es 0 9 default 
on ! date ( ! enactm5t ( ?is section4   
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  
7j7 ,t]m9ation ,! ,secret>y may n make a

 p>tial claim "u ?is section aft] ! date
 t is five ye>s aft] ! date ( ! enactm5t
 ( ?is section4  4  7b7 ,cl]ical am5dm5t
 ,! table ( sections at ! beg9n+ ( su*  
*apt] is am5d$ by ins]t+ aft] ! item    
relat+ to section #cgcf ! foll[+ new    
item3  #cgcg4 ,p>tial ,claim ,program4  
4  #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  #e4 ,increase ( 
au?orization ( appropriations =         

compreh5sive s]vice programs = homeless 
vet]ans ,section #bjaf ( title #ch1     
,unit$ ,/ates ,code1 is am5d$-- 7#a7 9  
p>agraph 7#g71 by /rik+ fiscal ye> #bjae
 & ea* subsequ5t fiscal ye> & ins]t+ ea*
 ( fiscal ye>s #bjae ?r\gh #bjbd2 &     
7#b7 by add+ at ! end ! foll[+ new      
p>agraphs3  7#h7 #cdd1jjj1jjj = ea* (   
fiscal ye>s #bjbe & #bjbf4  7#i7        
#beg1gjj1jjj = ea* fiscal ye> !reaft]4  
4  ,may #ai1 #bjbe,report$ ) an am5dm5t1
 committ$ to ! ,committee ( ! ,:ole     
,h\se on ! ,/ate ( ! ,union1 & ord]$ to 
be pr9t$