[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 842 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 842

    To repeal the sunset of certain enhancements of protections of 
  servicemembers relating to mortgages and mortgage foreclosures, to 
   amend title 38, United States Code, to authorize the Secretary of 
  Veterans Affairs to pay mortgage holders unpaid balances on housing 
   loans guaranteed by Department of Veterans Affairs, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 21, 2009

   Mr. Kerry introduced the following bill; which was read twice and 
             referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
    To repeal the sunset of certain enhancements of protections of 
  servicemembers relating to mortgages and mortgage foreclosures, to 
   amend title 38, United States Code, to authorize the Secretary of 
  Veterans Affairs to pay mortgage holders unpaid balances on housing 
   loans guaranteed by Department of Veterans Affairs, 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. REPEAL OF SUNSET OF CERTAIN ENHANCEMENTS OF PROTECTIONS OF 
              SERVICEMEMBERS RELATING TO MORTGAGES AND MORTGAGE 
              FORECLOSURES.

    Section 2203(c) of the Housing and Economic Recover Act of 2008 
(Public Law 110-289; 122 Stat. 2850; 50 U.S.C. App. 533 note) is 
amended by striking paragraph (2).

SEC. 2. PAYMENT OF UNPAID BALANCES OF DEPARTMENT OF VETERANS AFFAIRS 
              GUARANTEED LOANS.

    (a) In General.--Paragraph (2) of section 3732(a) of title 38, 
United States Code is amended--
            (1) by striking ``Before suit'' and inserting ``(A) Before 
        suit''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) In the event that a housing loan guaranteed under this 
chapter is modified under the authority provided under section 1322(b) 
of title 11, United States Code, the Secretary may pay the holder of 
the obligation the unpaid balance of the obligation due as of the date 
of the filing of the petition under title 11, United States Code, plus 
accrued interest, but only upon the assignment, transfer, and delivery 
to the Secretary (in a form and manner satisfactory to the Secretary) 
of all rights, interest, claims, evidence, and records with respect to 
the housing loan.''.
    (b) Maturity of Housing Loans.--Paragraph (1) of section 3703(d) of 
such title is amended by striking ``The maturity of'' and inserting 
``At the time of the origination of a housing loan, the maturity of 
such loan''.
    (c) Implementation Through Notice.--The Secretary of Veterans 
Affairs may implement the amendments made by this section through 
notice, procedure notice, or administrative notice.
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