II 111th CONGRESS 1st Session S. 842 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.
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).
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.