,,ii  #aai? ,,congress  #a/ ,session    
,s4 #aiba  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #bb1 #bjbe ,ms4   
,blunt ,ro*e/] 7= h]self & ,mr4 ,r\nds7 
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 ( #bjbe4  #b4  ,modification (    
adm9i/ration ( h\s+ loans ( ,dep>tm5t ( 
,vet]ans ,affairs to prev5t or resolve  
default  7a7  ,p>tial ,claim ,program   
,sub*apt] ,,iii ( *apt] #cg ( title #ch1
 ,unit$ ,/ates ,code1 is am5d$ by ins]t+
 aft] section #cgbb ! foll[+ new        
section3  #cgbc4  ,p>tial ,claim        
,program  7a7  ,9 g5]al  ,! ,secret>y   
%all 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>+ agreem5t
 to repay ! portion ( indebt$ness at    
loan maturity2 &  7#c7 ! ,secret>y      
receives-- 7,a7 a secur$ int]e/ 9 !     
prop]ty1 subord9ate to ! fir/ li5       
gu>ante$ loan1 s]v+ z collat]al = !     
gu>ante$ loan2 or  7,b7 agreem5t f !    
hold] to remit to ! ,secret>y ! portion 
( indebt$ness reimburs$ by ! borr[] to !
 hold]4  7c7  ,adm9i/ration ( p>tial    
claim  7#a7  ,am\nt ( claim  7,a7  ,9   
g5]al  ,except z provid$ 9 subp>agraphs 

7,b7 & 7,c71 ! am\nt ( a p>tial claim "u
 ?is section ) respect to a loan        
gu>ante$ "u ?is *apt] may n exce$ #be   
p]c5t ( ! unpaid pr9cipal balance ( !   
gu>ante$ loan z ( ! date t ! initial    
p>tial claim is made4  7,b7  ,c]ta9     
individuals  ,9 ! case ( an individual  
:o 0 del9qu5t on ! date ( ! enactm5t ( !
 ,vet]ans ,h\s+ ,/ability ,act ( #bjbe1 
! 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,c7  ,disa/]s  ,9 response to 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 ! ,secret>y may       
increase ! cap specifi$ 9 subp>agraph   
7,a7 to #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  ,once an individual has     
ent]$ into a p>tial claim & until t     
p>tial claim has be5 fully repaid1 !    
,secret>y %all r$uce ! aggregate am\nt (
 gu>anty or insurance h\s+ loan         
entitlem5t available to ! individual1 = 
any new mortgage loan1 "u ?is *apt]4    
7#b7  ,=eclosure  ,not)/&+ section      
#bdaj7;c7 ( title #bh1 an action to     
=eclose a li5 held by ! ,unit$ ,/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  
,effect 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  ,adm9i/rative guidance  7#a7  ,9   
g5]al  ,! ,secret>y may implem5t !      
,p>tial ,claim ,program ?r\gh           
adm9i/rative guidance = a p]iod ( n m   
?an ?ree ye>s beg9n+ on ! date on :i* ! 
,secret>y e/abli%es ! program4  7#b7    
,ext5sion  ,! ,secret>y may ext5d !     
p]iod describ$ 9 p>agraph 7#a7 bas$ on  
programmatic or budget>y consid]ations4 
7#c7  ,additional requirem5ts  ,!       
,secret>y may e/abli% ?r\gh adm9i/rative
 guidance describ$ 9 p>agraph 7#a7      

additional requirem5ts applicable to    
p>tial claims "u ?is section1 :i* %all  
include ! prohibition "u subsection     
7c77#d74  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  7b7  ,civil p5alties     
,su* sub*apt] is fur!r am5d$ by ins]t+  
aft] section #cgbc1 z add$ by subsection
 7a71 ! 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  7c7  ,proc$ure
 on default  ,section #cgcb ( title #ch1
 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 
subsection 7a7--  7,a7 9 p>agraph 7#a71 
by /rik+ obligation ea* place x appe>s &
 ins]t+ loan2  7,b7 9 p>agraph 7#b7--   
7i7 by am5d+ subp>agraph 7,a7 to read z 
foll[s3  7,a7 ,! ,secret>y may1 ^u su*  
t]ms & conditions z det]m9$ 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--  7,i7 a secur$ int]e/ 9 !      
prop]ty cov]$ by ! loan2 or  7,,ii7     

agreem5t f ! hold] to remit to !        
,secret>y ! portion ( indebt$ness       
reimburs$ by ! borr[] to ! hold]2 &     
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 %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 to vet]ans1 to  
help prev5t ! =eclosure ( any su* loan4 
4  7d7  ,=eclosure guidance  ,!         
,secret>y ( ,vet]ans ,affairs %all      
/rongly enc\rage hold]s ( loans gu>ante$
 "u *apt] #cg ( title #ch1 ,unit$ ,/ates
 ,code1 to implem5t a moratorium on     
=eclosures ( su* loans until ! ,p>tial  
,claim ,program e/abli%$ "u section     
#cgcb ( title #ch1 ,unit$ ,/ates ,code1 
z add$ by subsection 7a71 is fully      
op]ational4  7e7  ,cl]ical am5dm5t  ,!  

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