[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2230 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2230

To amend title 38, United States Code, to make permanent the authority 
   of the Secretary of Veterans Affairs to guarantee adjustable rate 
    mortgages, to authorize the guarantee of hybrid adjustable rate 
                   mortgages, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 23, 2002

Mr. Specter (for himself and Mr. Rockefeller) introduced the following 
 bill; which was read twice and referred to the Committee on Veterans' 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
To amend title 38, United States Code, to make permanent the authority 
   of the Secretary of Veterans Affairs to guarantee adjustable rate 
    mortgages, to authorize the guarantee of hybrid adjustable rate 
                   mortgages, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. AUTHORITY OF SECRETARY OF VETERANS AFFAIRS TO GUARANTEE 
              ADJUSTABLE RATE MORTGAGES AND HYBRID ADJUSTABLE RATE 
              MORTGAGES.

    (a) Permanent Authority To Guarantee Adjustable Rate Mortgages.--
Subsection (a) of section 3707 of title 38, United States Code, is 
amended to read as follows:
    ``(a) The Secretary may guarantee adjustable rate mortgages for 
veterans eligible for housing loan benefits under this chapter.''.
    (b) Authority To Guarantee Hybrid Adjustable Rate Mortgages.--That 
section is further amended--
            (1) in subsection (b), by striking ``Interest rate 
        adjustment provisions'' and inserting ``Except as provided in 
        subsection (c)(1), interest rate adjustment provisions'';
            (2) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (3) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Adjustable rate mortgages that may be guaranteed under this 
section include adjustable rate mortgages (commonly referred to as 
`hybrid adjustable rate mortgages') having interest rate adjustment 
provisions that--
            ``(1) are not subject to subsection (b)(1);
            ``(2) specify an initial rate of interest that is fixed for 
        a period of not less than the first three years of the mortgage 
        term;
            ``(3) provide for an initial adjustment in the rate of 
        interest by the mortgagee at the end of the period described in 
        paragraph (2); and
            ``(4) comply in such initial adjustment, and any subsequent 
        adjustment, with paragraphs (2) through (4) of subsection 
        (b).''.
    (c) Implementation of Authority To Guarantee Hybrid Adjustable Rate 
Mortgages.--The Secretary of Veterans Affairs may exercise the 
authority under section 3707 of title 38, United States Code, as 
amended by this section, to guarantee adjustable rate mortgages 
described in subsection (c) of such section 3707, as so amended, in 
advance of any rulemaking otherwise required to implement such 
authority.
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