[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4657 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 4657

   To amend title 38, United States Code, to improve the accuracy of 
 mortgage underwriting for home loans guaranteed by the Department of 
  Veterans Affairs by ensuring that energy costs are included in the 
             underwriting process, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 22, 2021

   Mr. Levin of California introduced the following bill; which was 
             referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
   To amend title 38, United States Code, to improve the accuracy of 
 mortgage underwriting for home loans guaranteed by the Department of 
  Veterans Affairs by ensuring that energy costs are included in the 
             underwriting process, 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. SHORT TITLE.

    This Act may be cited as the ``Veteran Home Energy Savings Act''.

SEC. 2. ENHANCED LOAN ELIGIBILITY REQUIREMENTS.

    (a) In General.--Section 3710 of title 38, United States Code, is 
amended--
            (1) in subsection (g)(3)(C), by inserting ``, including 
        with respect to the energy efficiency of the home for which the 
        loan is to be guaranteed as described in subsection (i)'' 
        before the period; and
            (2) by adding at the end the following new subsection:
    ``(i)(1)(A) Following the date on which the Secretary issues the 
guidance under paragraph (3), in cases where a veteran provides to the 
Secretary an energy efficiency report described in subparagraph (C) for 
a home for which a loan is to be guaranteed, the procedures established 
pursuant to subsection (g)(3)(C) for ascertaining the monthly income 
required by a veteran to meet anticipated loan payment terms shall take 
into consideration the estimated energy cost savings expected for the 
veteran for the home, including such cost savings relating to the cost 
of electricity, natural gas, oil, and any other fuel regularly used to 
supply energy to the home.
    ``(B) An energy efficiency report described in this subparagraph, 
with respect to a home for which a loan is to be guaranteed, means a 
report that--
            ``(i) estimates the expected energy cost savings specific 
        to the home, based on specific information about the home;
            ``(ii) is prepared in accordance with regulations 
        prescribed by the Secretary for purposes of this subsection; 
        and
            ``(iii) is prepared in accordance with--
                    ``(I) the Residential Energy Service Network's Home 
                Energy Rating System (commonly known as `HERS') by an 
                individual certified by such Network; or
                    ``(II) other methods determined appropriate by the 
                Secretary, in consultation with the advisory committee 
                under paragraph (2), including with respect to third-
                party quality assurance procedures.
    ``(2)(A) To assist the Secretary in carrying out this subsection, 
the Secretary shall establish an advisory group consisting of 
individuals representing the interests of--
            ``(i) mortgage lenders;
            ``(ii) appraisers;
            ``(iii) energy raters and residential energy consumption 
        experts;
            ``(iv) energy efficiency organizations;
            ``(v) real estate agents;
            ``(vi) home builders and remodelers;
            ``(vii) consumer advocates;
            ``(viii) veterans' service organizations; and
            ``(ix) other persons determined appropriate by the 
        Secretary.
    ``(B) The advisory group established under subparagraph (A) shall 
not be subject to the Federal Advisory Committee Act (5 U.S.C. App.).
    ``(3) The Secretary, in consultation with the advisory group 
established under paragraph (2)(A), shall ensure that the procedures 
described in subsection (g)(3)(C) include guidance for lenders to carry 
out paragraph (1) that uses clear instructions and standards.
    ``(4) The Secretary shall ensure that marketing materials that the 
Secretary provides to veterans with respect to loans guaranteed under 
this chapter include information regarding the use of energy efficiency 
reports under this subsection.
    ``(5) Not later than one year after the date on which the Secretary 
issues the guidance under paragraph (3), and every year thereafter, the 
Secretary shall submit to Congress and make publicly available a report 
that--
            ``(A) enumerates the number of loans guaranteed for which a 
        veteran provided to the Secretary an energy efficiency report, 
        including the number of such loans for which cost savings were 
        taken into account pursuant to paragraph (1); and
            ``(B) of the number of loans enumerated under subparagraph 
        (A), an enumeration of the default rates and rates of 
        foreclosure, including how such enumeration compares with the 
        default rates and rates of foreclosure for guaranteed loans for 
        which no energy efficiency report is provided.''.
    (b) Clarification of Requirements Regarding Energy Efficiency 
Standards.--Section 3704(f) of such title is amended by striking ``such 
standards'' and inserting the following: ``the standards established 
under such section 109, as in effect on the date of such 
construction''.
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