[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4539 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 4539

To amend title 38, United States Code, to make certain improvements to 
the housing loan benefit program of the Department of Veterans Affairs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 13, 2007

Mr. Buyer (for himself and Mr. Michaud) introduced the following bill; 
        which was referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
To amend title 38, United States Code, to make certain improvements to 
the housing loan benefit program of the Department of Veterans Affairs.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of Veterans Affairs Loan 
Guaranty Cost Reduction Act of 2007''.

SEC. 2. IMPROVEMENTS TO HOUSING LOAN PROGRAM OF DEPARTMENT OF VETERANS 
              AFFAIRS.

    (a) Increase in Maximum Guaranty Amount.--Section 3703(a)(1)(C) of 
title 38, United States Code, is amended by inserting ``125 percent 
of'' after ``25 percent of''.
    (b) Extension of Certain Loan Fee Determination Periods.--Section 
3729(b)(2) of title 38, United States Code, is amended--
            (1) in subparagraphs (A)(iii) and (iv), (B)(ii), (C)(i) and 
        (iii), and (D)(i) and (ii), by striking ``October 1, 2011'' 
        each place it appears and inserting ``October 1, 2017''; and
            (2) in subparagraph (B)(iii) and (iv), by striking 
        ``October 1, 2013'' both places it appears and inserting 
        ``October 1, 2017''.
    (c) Increase in Maximum Guaranty Amount for Certain Refinanced 
Loans.--Section 3703 (a)(1)(A)(IV) of title 38, United States Code, is 
amended by inserting ``(5),'' after ``(3),''.
    (d) Decrease in Equity Requirement for Certain Loans.--Section 
3710(b)(8) is amended by striking ``90 percent'' and inserting ``100 
percent''.
    (e) Limitation on Amount of Fees.--Section 3729 of title 38, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(d) Limitation on Amount of Fee.--For any loan guaranteed, 
insured, or made in an amount that exceeds the Freddie Mac conforming 
loan limit limitation determined under section 305(a)(2) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a single-
family residence, as in effect on the date of the enactment of the 
Department of Veterans Affairs Loan Guaranty Cost Reduction Act of 
2007, the amount of the fee collected under this section may not exceed 
the amount of such a fee collected for a loan guaranteed, insured, or 
made in an amount equal to such limitation.''.
    (f) Increase in Guaranty for Affordable Homes.--Section 3703(a)(1) 
of title 38, United States Code, is amended--
            (1) By redesignating subparagraph (C) as subparagraph (D); 
        and
            (2) by inserting after subparagraph (B) the following new 
        subparagraph (C):
    ``(C)(i) The maximum amount of guaranty entitlement available to an 
eligible veteran for a loan in any amount to purchase a dwelling to be 
owned and occupied by the veteran as a home, if the dwelling is 
affordable housing (as determined by the Secretary, in consultation 
with the Secretary of Housing and Urban Development and the heads of 
other appropriate agencies) and the veteran is the first owner-occupant 
of the dwelling, shall be the greater of--
            ``(I) the amount of guaranty entitlement available to the 
        veteran under subparagraph (A); or
            ``(II) 30 percent of the loan.
    ``(ii) For the purposes of this subparagraph, the term `eligible 
veteran' means a veteran whose annual income is below a maximum income 
amount, which shall be determined by the Secretary.''.
    (g) Use of Certain Funds to Reduce Closing Costs for Loans 
Guaranteed for Affordable Homes.--Section 3722 of title 38, United 
States Code, is amended--
            (1) by redesignating subsection (e) as subsection (f);
            (2) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e)(1) Amounts deposited into the fund under subsection (c)(2) 
that are not expended for the purpose of guaranteeing loans under this 
chapter may be used to reduce the closing costs of a loan referred to 
in section 3703(a)(1)(C) or 3762 of this title made to a veteran who is 
not indebted to the Federal Government.
    ``(2) During the fiscal years 2008 through 2017, the total amount 
available for payments under paragraph (1) may not exceed $14,000,000.
    ``(3) For each fiscal year, the Secretary shall determine the 
amount of each payment under paragraph (1) by estimating the number of 
veterans likely to apply to receive such a payment. The Secretary shall 
make such payments in the order in which the Secretary receives 
applications for such payments.''.
                                 <all>