[Congressional Record Volume 143, Number 114 (Wednesday, September 3, 1997)]
[Senate]
[Page S8737]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         ADDITIONAL STATEMENTS

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                           VETERANS MORTGAGES

 Mr. CLELAND. Mr. President, during my tenure as Administrator 
of the Veterans, Administration a ``fall back and rescue'' plan was 
formulated to be of assistance to those veterans with VA guaranteed 
mortgages which might be burdensome.
  The proposal which later became a VA regulation is now, as then, 
referred to as IRRRL which stands for interest rate reduction 
refinancing loan.
  Many thousands of eligible veterans have already benefited from this 
legislation during the past 17 years of its existence and the VA 
personnel involved deserve many thanks for their dedicated interest and 
help.
  My concern is not with the legislation or the Department of Veterans 
Affairs, but rather with the seeming reluctance of many in the mortgage 
industry to take a more active posture with regard to its 
implementation.
  I have been told by those who are in the know that the numbers of 
interested lenders is very small in comparison to the need.
  I call upon those companies who service GI mortgage loans to be more 
receptive and to make known throughout the veterans community the 
existence of these mortgage ``lifelines.''
  The main features of the IRRRL are the following: First, in most 
cases the interest rate will be lower, and the payment will be lower. 
Documentation is at a minimum and no credit evaluation is done; second, 
refinancing can be done if the mortgagee is less than 2\1/2\ months 
behind in their payments; and third, the veteran can add up to 
$6,000.00 to the mortgage for energy efficient improvements, for 
example, air conditioning, heating systems, insulation, storm door and 
windows.
  In closing, I also encourage Secretary designate Hershel Gober to 
intensify the VA's efforts to communicate to veterans information on 
this very vital and viable tool which is available to them. Further, I 
hope to enlist in the same effort the extremely valuable services of my 
good friend, former VA Secretary Jesse Brown, whose knowledge and 
dedication to veterans is unquestioned.

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