[Congressional Record Volume 149, Number 75 (Tuesday, May 20, 2003)]
[House]
[Pages H4275-H4277]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SELECTED RESERVE HOME LOAN EQUITY ACT
Mr. BOOZMAN. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 1257) to amend title 38, United States Code, to make
permanent the authority for qualifying members of the Selected Reserve
to have access to home loans guaranteed by the Secretary of Veterans
Affairs and to provide for uniformity in fees charged qualifying
members of the Selected Reserve and active duty veterans for such home
loans.
The Clerk read as follows:
H.R. 1257
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 ``Selected Reserve Home Loan
Equity Act''.
SEC. 2. PERMANENT AUTHORITY FOR HOUSING LOANS FOR MEMBERS OF
THE SELECTED RESERVE.
Section 3702(a)(2)(E) of title 38, United States Code, is
amended by striking ``and ending on September 30, 2009,''.
SEC. 3. UNIFORM HOME LOAN GUARANTY FEES FOR QUALIFYING
MEMBERS OF THE SELECTED RESERVE AND ACTIVE DUTY
VETERANS.
(a) In General.--Paragraph (2) of section 3729(b) of title
38, United States Code, is amended to read as follows:
``(2) The loan fee table referred to in paragraph (1) is as
follows:
``LOAN FEE TABLE
------------------------------------------------------------------------
Type of loan Veteran Other obligor
------------------------------------------------------------------------
(A)(i) Initial loan described in 2.00 NA
section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other initial loan described
in section 3710(a) other than with
5-down or 10-down (closed before
October 1, 2011)...................
------------------------------------------------------------------------
(A)(ii) Initial loan described in 1.25 NA
section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other initial loan described
in section 3710(a) other than with
5-down or 10-down (closed on or
after October 1, 2011).............
------------------------------------------------------------------------
(B)(i) Subsequent loan described in 3.30 NA
section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other subsequent loan
described in section 3710(a)
(closed before October 1, 2011)....
------------------------------------------------------------------------
(B)(ii) Subsequent loan described in 2.15 NA
section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other subsequent loan
described in section 3710(a)
(closed on or after October 1, 2011
and before October 1, 2013)........
------------------------------------------------------------------------
(B)(iii) Subsequent loan described 1.25 NA
in section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other subsequent loan
described in section 3710(a)
(closed on or after October 1,
2013)..............................
------------------------------------------------------------------------
(C)(i) Loan described in section 1.50 NA
3710(a) to purchase or construct a
dwelling with 5-down (closed before
October 1, 2011)...................
------------------------------------------------------------------------
(C)(ii) Loan described in section 0.75 NA
3710(a) to purchase or construct a
dwelling with 5-down (closed on or
after October 1, 2011).............
------------------------------------------------------------------------
(D)(i) Initial loan described in 1.25 NA
section 3710(a) to purchase or
construct a dwelling with 10-down
(closed before October 1, 2011)....
------------------------------------------------------------------------
(D)(ii) Initial loan described in 0.50 NA
section 3710(a) to purchase or
construct a dwelling with 10-down
(closed on or after October 1,
2011)..............................
------------------------------------------------------------------------
(E) Interest rate reduction 0.50 NA
refinancing loan...................
------------------------------------------------------------------------
(F) Direct loan under section 3711.. 1.00 NA
------------------------------------------------------------------------
(G) Manufactured home loan under 1.00 NA
section 3712 (other than an
interest rate reduction refinancing
loan)..............................
------------------------------------------------------------------------
(H) Loan to Native American veteran 1.25 NA
under section 3762 (other than an
interest rate reduction refinancing
loan)..............................
------------------------------------------------------------------------
(I) Loan assumption under section 0.50 0.50
3714...............................
------------------------------------------------------------------------
(J) Loan under section 3733(a)...... 2.25 2.25''.
------------------------------------------------------------------------
(b) Conforming Amendments.--(1) Paragraph (4)(A) of such
section is amended to read as follows:
``(A) The term `veteran' means any veteran eligible for the
benefits of this chapter.''.
(2) Paragraph (4) of such section is amended by striking
subparagraph (B) and redesignating subparagraphs (C), (D),
(E), (F), (G), (H), and (I) as subparagraphs (B), (C), (D),
(E), (F), (G), and (H), respectively.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Arkansas (Mr. Boozman) and the gentleman from Illinois (Mr. Evans) each
will control 20 minutes.
The Chair recognizes the gentleman from Arkansas (Mr. Boozman).
Mr. BOOZMAN. Mr. Speaker, I yield myself such time as I may consume.
[[Page H4276]]
Mr. Speaker, I am pleased that the House is considering today H.R.
1257, the Selected Reserve Home Loan Equity Act.
This legislation would save more than $50 million over 10 years and
is similar to a bill the House passed in the 107th Congress, H.R. 2095.
This measure makes the VA home loan program for members of the Selected
Reserve permanent and reduces the funding fee charged to the Selected
Reserve home loan applications to the same amount as that paid by
active duty servicemembers.
Under current law, the reservists may participate in VA's home loan
program through 2009. In the past decade, however, reservists have been
increasingly called upon to participate on active duty for extended
periods to support the national defense. Indeed, members of the
Selected Reserve have become an integral part of America's total force,
and they should be afforded the same home loan benefit as active duty
veterans.
The CBO estimates that VA will guarantee 9,000 additional loans a
year between 2010 and 2013 due to this legislation. Additionally, H.R.
1257 will provide uniformity in the funding fees charged to members of
the Selected Reserve and active duty veterans for VA home loans. Today
in most cases a reservist pays three-quarters of a percent higher
funding fee than that charged active duty veterans.
This policy exists despite data indicating that the foreclosure rates
for members of the Selected Reserve have been almost one-third lower
than that of other veterans. Again, Mr. Speaker, with our country
relying more and more on reservists, they certainly deserve equality in
fees with other veterans.
Finally, this bill would affect the home loan guarantee fees for
veterans qualifying for second or subsequent home loans with no
downpayment. The fees for veterans who obtain a subsequent VA home loan
would be raised from 3 percent to 3.3 percent for loans closed before
October 1, 2011, and then reduced to 2.15 percent for loans closed
between October 1, 2011, and September 30, 2013. CBO estimates that the
bill would save $4 million in 2004, $4 million over 5 years, and $51
million over 10 years.
Mr. Speaker, this bill was unanimously recommended by our committee.
I thank the gentleman from Illinois (Mr. Evans) for his work in
introducing this measure, as well as the chairman and ranking member of
the Subcommittee on Benefits, the gentleman from South Carolina (Mr.
Brown) and the gentleman from Maine (Mr. Michaud), for considering this
bill in a timely fashion.
Mr. Speaker, I reserve the balance of my time.
Mr. EVANS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I thank the gentleman from New Jersey (Chairman Smith),
the gentleman from South Carolina (Mr. Brown), and the ranking member,
the gentleman from Maine (Mr. Michaud), for their work in bringing H.R.
1257 to the floor. I support this bill because I believe the men and
women who are defending this Nation by their service in Selected
Reserve should be eligible to obtain a home loan from the Department of
Veterans Affairs.
Under the current program, the home loan program for the Selected
Reserve will expire on September 30, 2009. Since reservists may serve
for a minimum of 6 years in order to qualify for this benefit, it is
important for Congress to act this year to continue that program.
I believe this is a program that should be made permanent. I believe
also that reservists should be charged with the same fee for a home
loan as any other veteran. The bill does this. In order to pay for the
costs of the bill, the measure contains a slight increase in the fees
paid by veterans to use the home loan program a second or additional
time without paying any downpayment.
This fee should not be needed; but I recognize that under our current
budgetary restraints, it is a necessary part of the bill. Today's
members of the Selected Reserve who are fighting for freedom around the
world deserve to have a home when they come home. I urge all Members to
support this legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. BOOZMAN. Mr. Speaker, I yield 4 minutes to the gentleman from
Connecticut (Mr. Simmons).
Mr. SIMMONS. Mr. Speaker, I thank the gentleman and the ranking
member for introducing the Selected Reserve Home Equity Loan Act. I
have served as a reservist in the U.S. Army for over 30 years, and I
feel that this is an extraordinarily helpful piece of legislation for
our reservists that will help hundreds of my colleagues in the Reserve
in Connecticut, and literally thousands if not tens of thousands of
reservists across the Nation, many of whom are deployed, on active
duty, called up on active duty even as we speak here today.
By giving these reservists the opportunity to count on a guaranteed
and ensured home loan through the Department of Veterans Affairs, this
program promises them the American Dream of owning their own home. What
better message for this body and this Nation to send to its deployed
reservists than the message that when you come home we wish to extend
to you the opportunity of taking a loan and buying a home.
We have come to appreciate the role of the reservists in our national
security and in our military now more than ever. When I first joined
the Reserves in 1970 after coming off of active duty service in
Vietnam, it was rare for a reserve unit to be activated and deployed.
In fact, from 1970 to 1990, my military unit was not activated and
deployed for any purpose. But in the early 1990s, the deployments
began, and members of the unit and finally the unit itself were
activated and deployed on a number of occasions. And, in fact, my
former unit is currently on active duty as we speak today, and all of
its members have been called to active duty and deployed.
This changing role of the U.S. Reserves makes it all the more
appropriate that legislation of this sort be crafted to extend these
benefits to them. I thank my colleague and ranking member of the
Committee on Veterans Affairs for his vision in seeing the importance
of this legislation. I also thank my colleague, the gentleman from
Arkansas (Mr. Boozman), for his work on this important piece of
legislation.
Mr. Speaker, I rise in support of H.R. 1911, to enhance cooperation
and the sharing of resources between the Department of Veterans Affairs
and the Department of Defense.
H.R. 1911 was originally introduced by the gentleman from Arkansas,
Mr. Boozman.
As Chairman of the Subcommittee on Health for the Committee on
Veterans' Affairs and a member of the Armed Services Committee, I have
observed firsthand the need for enhanced sharing initiatives between
the Department of Veterans Affairs and the Department of Defense. My
experience on these two committees has given me a vision of the
opportunities afforded by an effective pooling of VA and DOD
resources--I was drawn to Mr. Boozman's bill for this very reason.
The new mandate envisioned by this bill would lead to better services
for active military servicemembers, reservists, dependents and veterans
alike. This could be accomplished by elevating programs and areas of
mutual interest of the Departments--such as the Montgomery GI Bill;
VA's home loan guaranty program; various memorial affairs activities;
general administrative and management systems; common information
technology, records keeping and systems of records; and capital
infrastructure, among many other possibilities.
This legislation would be of great benefit in seeking to bridge the
divide between these two Departments and doing so in the interests of
America, our active soldiers, sailors, airmen, Marines, dependents,
veterans and the American people. Passage of this bill would have the
additional benefit of conserving taxpayer funds, cutting down on
administrative and bureaucratic waste and promoting better services to
current and future veterans of our armed services.
I urge all my colleagues to support this legislation.
Mr. EVANS. Mr. Speaker, I yield 4 minutes to the gentleman from Maine
(Mr. Michaud).
Mr. MICHAUD. Mr. Speaker, I thank the gentleman for yielding me this
time.
I rise in strong support of H.R. 1257, the Selected Reserve Home Loan
Equity Act, and I want to thank the gentleman from New Jersey (Mr.
Smith) and the gentleman from Illinois (Mr. Evans) for their leadership
on this issue. H.R. 1257 would make the home loan program for members
of the Selected Reserve permanent.
[[Page H4277]]
{time} 1130
Currently the program is scheduled to expire as of September 30,
2009.
In 1992, the Congress granted eligibility for VA home loans to
persons who served in the Selected Reserve, including the National
Guard. This benefit is a useful recruiting and retention tool. Mr.
Speaker, this legislation would also equalize the fees charged to
members of the Selected Reserve and active-duty veterans for VA home
loans. Currently, qualifying members of the Selected Reserve are
charged a higher funding fee than other veterans. According to VA,
members of the Selected Reserve have a lower foreclosure rate than
other loan guarantee beneficiaries. This higher rate is not justified.
Mr. Speaker, in recent years our Guard and Reserves have been
increasingly called upon to participate on active duty for lengthy
periods of time. As the recent military actions in Afghanistan and Iraq
clearly demonstrate, the Selected Reserve is an integral part of
America's total force. Clearly, reservists have earned the right to
receive equal lower fees with other veterans.
I am proud to be an original cosponsor of H.R. 1257. This legislation
will assist the many members of the Guard and Reserves living in my
home State of Maine. I fully support H.R. 1257 and urge my colleagues
to pass this measure.
Mr. BOOZMAN. Mr. Speaker, I yield 5 minutes to the gentleman from New
Jersey (Mr. Smith), the distinguished chairman of the Committee on
Veterans Affairs.
Mr. SMITH of New Jersey. Mr. Speaker, I thank my good friend for
yielding time. I will not take the 5 minutes because this bill has been
very adequately explained by my good friend and colleague, the
gentleman from Arkansas (Mr. Boozman), and, of course, the author of
the bill, the gentleman from Illinois (Mr. Evans), our ranking member
and a very close partner on all veterans issues. I want to commend him
for this legislation. At a time when there is some partisanship when it
comes to veterans issues, as I just made very clear at a press briefing
that we had, the gentleman from Illinois and several members of the
committee have always gone out of their way to keep the committee as
nonpartisan as humanly possible. We do work in a very cooperative way.
The bill under consideration really builds on the whole total-force
concept that whether you be Selected Reserve or active Army or active
military, we should not permit any distinction when it comes to home
loan fees. This is a very important piece of legislation. I am very
proud to be supporting it. I congratulate the gentleman from Illinois
on his authorship of this fine bill.
Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in support of H.R.
1257, the ``Selected Reserve Home Loan Equity Act.''
H.R. 1257 amends Title 38 of the United States Code, ``to make
permanent the authority for qualifying members of the Selected Reserve
to have access to home loans guaranteed by the Secretary of Veterans
Affairs and to provide for uniformity in fees charged qualifying
members of the Selected Reserve and active duty veterans for such home
loans.''
I support H.R. 1257 because it is a way for this body to thank our
Select Reservists the same way we thank the brave veteran men and women
who have served their country so valiantly. The Department of Veterans
Affairs provides our active and inactive military personnel with
various services and benefits. One of the benefits provided is
guaranteed home loans at reasonable fees.
Presently, members of the Selected Reserves are eligible for
Department of Veterans Affairs loans. However, the current program is
scheduled to expire at the end of fiscal year 2009. Moreover, Selected
Reservists pay a higher fee on guaranteed home loans than do active
duty veterans. H.R. 1257 grants Selected Reservists permanent access to
guaranteed home loans just as like veterans. Selected Reservist will
also be eligible for the same fee structure as veterans.
Our Selected Reservists are an important part of our exemplary
military, and are integral to protecting our homeland and bringing
peace throughout the world. Providing our military personnel, including
members of the Selected Reserve with access to economically beneficial
programs like guaranteed loans is one small way to thank them for their
service.
Mr. Speaker, I support H.R. 1257, and I urge my colleagues to do the
same.
Mr. EVANS. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
Mr. BOOZMAN. Mr. Speaker, I urge my colleagues to support the
Selected Reserve Home Loan Equity Act.
Mr. Speaker, I have no further requests for time, and I yield back
the balance of my time.
The SPEAKER pro tempore (Mr. Terry). The question is on the motion
offered by the gentleman from Arkansas (Mr. Boozman) that the House
suspend the rules and pass the bill, H.R. 1257.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. BOOZMAN. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
____________________