[Congressional Record Volume 145, Number 116 (Thursday, September 9, 1999)]
[Senate]
[Pages S10694-S10695]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. JEFFORDS (for himself and Mr. Akaka):
  S. 1571. A bill to amend title 38, United States Code, to provide for 
permanent eligibility of former members of the Selected Reserve for 
veterans housing loans; to the Committee on Veterans' Affairs.


 PERMANENT ELIGIBILITY OF MEMBERS OF THE SELECTED RESERVE FOR VETERANS

 Mr. JEFFORDS. Mr. President, I would like to draw my 
colleagues' attention to legislation Senator Akaka and I are 
introducing today. Entitled ``Permanent Eligibility of Members of the 
Selected Reserve for Veterans Home Loans,'' this important legislation 
does not change existing law, but rather makes permanent a critical 
benefit for the National Guard and Reserve personnel.
  Under current law, selected Reservists and National Guard personnel 
who complete six years of service are eligible for guaranteed home 
loans. This is a significant benefit that has been enjoyed by active 
duty personnel for many years and has proven to be very effective. In 
1992, there was broad bipartisan support in both the House and the 
Senate for extending this benefit to the hard working men and women of 
the Reserves on a trial basis until 1999. Last year the program was 
extended to the year 2003. However, as we near that date, no potential 
recruit may participate in the program because it expires before they 
are able to complete six years of service. Therefore, we introduce this 
bill in an effort to make this benefit permanent.
  Our Reserves and National Guard are being called upon more and more 
today. They are a crucial asset to our Nation's military, but the 
Reserves are not exempt from problems such as low recruiting that 
currently face our military. This legislation will give the Reserve 
Component an added recruitment incentive to offer potential service 
members.
  Mr. President, more and more of our service members are taking the 
giant step of buying a home. Since the start of the VA Home Loan 
Program in 1992 through 1996, 33,224 loans have been guaranteed by the 
VA. Only 93 of those

[[Page S10695]]

have been foreclosed upon; an incredibly low rate of .37 percent; The 
foreclosure rate for loans made to other veterans was .97 percent (two 
and a half times more). In 1996 alone, over $1.1 billion was given out 
in home loans under this program. This legislation is good not only for 
our veterans and Reserves, but it is good for our economy as well. I 
hope there will be support from both sides on this issue.
 Mr. AKAKA. Mr. President, I am pleased to join Senator 
Jeffords in introducing a bill that would permanently authorize the 
Department of Veterans Affairs Home Loan Guaranty Program for members 
of the Selected Reserve.
  As the proud author of the original legislation enacted in 1992 to 
extend eligibility for the VA Home Loan Guaranty Program to National 
Guard and Reserve members, I am pleased with the results of the 
program. Tens of thousands of dedicated reservists who served for at 
least six years, and continue to serve or have received an honorable 
discharge, have been able to fulfill the dream of home ownership 
through this program. The participation of Guard and Reserve members 
not only benefits these service members, but also stabilizes the 
financial viability of the program since this group has had a lower 
default rate than most other program participants.
  In anticipation of the October 1999 expiration of the eligibility of 
reservists for VA-guaranteed home loans, I introduced legislation last 
year to permanently authorize the VA Home Loan Guaranty Program for 
members of the Selected Reserve. With bipartisan support in the House 
and Senate, a revised version of my legislation was enacted into law. 
While I am pleased that the eligibility of reservists for veterans 
housing loans was extended September 2003, I believe that permanent 
authority should be provided to members of the Selected Reserve.
  Since the end of the cold war, we have reassessed the role, size, and 
structure of our Armed Forces. Recognizing the changes in our national 
military strategy prompted by a new global environment and appreciating 
the need to address our nation's budget deficit, we have significantly 
downsized our active duty military forces. As a result, the National 
Guard and Reserve have played a more prominent role in the Total Force. 
Reservists are being increasingly called upon to protect and promote 
our national security interests in regions throughout the world. Most 
recently, reservists have been serving alongside active duty forces in 
the Balkans to support NATO air operations over Kosovo. By making 
permanent the eligibility of members of the Selected Reserve for the VA 
Home Loan Guaranty Program, we would specifically recognize their vital 
service to our country and ensure that veterans housing loans will 
continue to be available to them beyond the near future.
  The VA guaranty program is also an important component of a benefits 
package which makes Guard and Reserve service more attractive to 
qualified individuals. This is of particular importance during a time 
when the civilian sector is competing for the same pool of limited 
applicants, as well as when our military needs are becoming 
increasingly technical, demanding only the most intelligent, motivated, 
and competent individuals. Currently, the VA Home Loan Guaranty Program 
cannot be used as a recruitment tool since the authority expires in 
four years and reservists are required to serve for at least six years 
before they qualify for VA-guaranteed loans. A permanent authorization 
will assist the National Guard and Reserve with their recruitment 
efforts by allowing veterans housing loans to be offered as an 
incentive.
  Thank you, Mr. President. I urge my colleagues to support this 
measure which would recognize the vital contributions of National Guard 
and Reserve members to our country, as well as ensure that veterans 
housing loans will continue to be available in the future.
                                 ______