[House Report 118-576]
[From the U.S. Government Publishing Office]


118th Congress   }                                       {      Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                       {     118-576

======================================================================



 
              CLEAR COMMUNICATION FOR VETERANS CLAIMS ACT

                                _______
                                

  July 8, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Bost, from the Committee on Veterans' Affairs, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 7816]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 7816) to direct the Secretary of Veterans 
Affairs to seek to enter into an agreement with a federally 
funded research and development center for an assessment of 
notice letters that the Secretary sends to claimants for 
benefits under laws administered by the Secretary, and for 
other purposes, having considered the same, reports favorably 
thereon with an amendment and recommends that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     4
Subcommittee Consideration.......................................     5
Committee Consideration..........................................     5
Committee Votes..................................................     5
Committee Oversight Findings.....................................     5
Statement of General Performance Goals and Objectives............     5
Earmarks and Tax and Tariff Benefits.............................     6
Committee Cost Estimate..........................................     6
Budget Authority and Congressional Budget Office Estimate........     6
Federal Mandates Statement.......................................     7
Advisory Committee Statement.....................................     7
Applicability to Legislative Branch..............................     7
Statement on Duplication of Federal Programs.....................     8
Section-by-Section Analysis of the Legislation...................     8
Changes in Existing Law Made by the Bill, as Reported............     8

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Clear Communication for Veterans 
Claims Act''.

SEC. 2. INDEPENDENT ASSESSMENT OF NOTICES THAT THE SECRETARY OF 
                    VETERANS AFFAIRS SENDS TO CLAIMANTS.

  (a) Agreement.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of Veterans Affairs shall seek to 
enter into an agreement with an FFRDC for an assessment of notices that 
the Secretary sends to claimants.
  (b) Assessment.--An FFRDC that enters to an agreement under 
subsection (a) shall submit to the Secretary a written assessment of 
such notices. The assessment shall include the following:
          (1) The determination of the FFRDC, made in consultation with 
        covered entities, whether each such notice may be feasibly 
        altered to reduce paper consumption by, and costs to, the 
        Federal Government.
          (2) The recommendations of the FFRDC regarding how the 
        Secretary may make such notices clearer to claimants, better 
        organized, and more concise.
  (c) Report; Implementation.--Not later than 90 days after the 
Secretary receives the assessment under subsection (b), the Secretary 
shall--
          (1) submit to the Committees on Veterans' Affairs of the 
        Senate and House of Representatives a copy of such assessment; 
        and
          (2) implement the recommendations in the assessment that are 
        in compliance with the laws administered by the Secretary.
  (d) Deadline for Implementation.--The Secretary shall complete the 
implementation of such recommendations pursuant to subsection (c)(2) by 
not later than one year after the date on which the Secretary commences 
such implementation.
  (e) Definitions.--In this section:
          (1) The term ``FFRDC'' means a federally funded research and 
        development center.
          (2) The term ``covered entities'' includes--
                  (A) the Secretary of Veterans Affairs;
                  (B) an expert in laws administered by the Secretary 
                of Veterans Affairs;
                  (C) a veterans service organization recognized under 
                section 5902 of title 38, United States Code; and
                  (D) an entity that advocates for veterans.
          (3) The terms ``claimant'' and ``notice'' have the meanings 
        given such terms in section 5100 of title 38, United States 
        Code.

SEC. 3. MODIFICATION OF CERTAIN HOUSING LOAN FEES.

  The loan fee table in section 3729(b)(2) of title 38, United States 
Code, is amended by striking ``November 15, 2031'' each place it 
appears and inserting ``November 29, 2031''.

                          Purpose and Summary

    H.R. 7816, the ``Clear Communications for Veterans Claims 
Act,'' was introduced by Rep. John S. Duarte of California on 
March 26, 2024. The bill, as amended, would require the 
Secretary of the Department of Veterans Affairs (VA) to 
contract with a third-party research entity to improve notices 
that VA sends to individuals who file claims for VA benefits.
    Finally, the bill would also provide an offset for the cost 
of these program changes by extending current rates for VA home 
loan funding fees.

                  Background and Need for Legislation


Section 1: Short Title

    This Act may be cited as the ``Clear Communications for 
Veterans Claims Act.''

Section 2: Independent Assessment of Notices That the Secretary of 
        Veterans Affairs Sends to Claimants

    Current law (e.g., 38 U.S.C. Sec. Sec. 5103, 5104) requires 
VA to provide specific information at various points throughout 
the VA claims process to individuals who file claims for VA 
benefits. VA's notice letters are critical to ensuring that 
veterans and their families understand how to pursue their 
claims for the VA benefits.
    At a March 20, 2024, Subcommittee on Disability Assistance 
and Memorial Affairs oversight hearing,\1\ the Committee 
learned that VA's attempts to make these letters comprehensive 
based on feedback from Veterans Service Organizations, as well 
as compliant with law, have resulted in notice letters that are 
difficult to understand, lengthy (sometimes over 20 pages 
long), and filled with undecipherable legal jargon and 
information that is irrelevant to an individual's overall 
claim. Further, letters can be filled with inaccurate 
information, and some letters lack the necessary information 
for individuals to make informed decisions on what to do next 
in the claims process.
---------------------------------------------------------------------------
    \1\Lost in Translation: How VA's Disability Claims and Appeals 
Letters Should be Simplified  Committee Repository  
U.S. House of Representatives.
---------------------------------------------------------------------------
    In his written testimony for the March 20, 2024, oversight 
hearing, Mr. Shane L. Liermann, Deputy National Legislative 
Director, Disabled American Veterans (DAV), stated that he had 
surveyed DAV's national service officers who assist veterans 
with their claims for VA benefits, and that the survey revealed 
that ``claimants are being confused and frustrated by VA 
letters and it is greatly compounded when these letters are 
filled with inaccurate information and errors.'' Mr. Liermann 
added, ``One of our supervisors noted they are finding errors 
in approximately 30% of all VA letters they review.''\2\
---------------------------------------------------------------------------
    \2\Shane L. Liermann, Testimony of DAV (March, 20, 2024), HHRG-118-
VR09-Wstate-LiermannS-20240320.pdf (house.gov).
---------------------------------------------------------------------------
    In her written testimony for the March 20, 2024, oversight 
hearing, Ms. Diane Boyd Rauber, Executive Director, National 
Organization of Veterans' Advocates, Inc., stated: ``A veteran 
not only loses time while trying to figure out what VA wants; 
some veterans are bound to give up and abandon their claim or 
appeal.''\3\
---------------------------------------------------------------------------
    \3\Diane Boyd Rauber, Testimony of NOVA (March 20, 2024), HHRG-118-
VR09-Wstate-BoydRauberD-20240320.pdf (house.gov).
---------------------------------------------------------------------------
    In his written testimony for the March 20, 2024, oversight 
hearing, Mr. Michael S. Figlioli, Director, National Veterans 
Service, Veterans of Foreign Wars of the United States, stated: 
``Legal jargon and medical terms can be overwhelming, 
especially for those without a background in law or medicine. 
This complexity often leads to confusion and frustration, 
hindering veterans from grasping the full scope of their 
benefits and entitlements.''\4\
---------------------------------------------------------------------------
    \4\Michael S. Figlioli, Testimony of VFW (March 20, 2024), HHRG-
118-VR09-Bio-SFiglioliM-20240320.pdf (house.gov).
---------------------------------------------------------------------------
    To address these problems, this section would require VA to 
contract with a third-party research entity that would provide 
recommendations--in consultation with VA, legal experts, and 
veterans' advocates--to make VA notice letters shorter and more 
understandable for veterans and their survivors. This bill 
would also require the Secretary to implement the 
recommendations that comply with law and require the Secretary 
to submit the assessment to Congress.
    The Committee believes that this legislation is crucial to 
ensure that veterans and their families receive notice letters 
from VA that are concise, understandable, and provide 
sufficient information for them to make informed decisions on 
their claims for VA benefits.

Section 3: Modification of Certain Housing Loan Fees

    Under current law, veterans who take advantage of the VA 
Home Loan Program pay a small fee that can be rolled into their 
monthly mortgage payments. This section would cover the costs 
of the other section of this bill by extending the current 
rates for VA home loan funding fees by a few days to November 
29, 2031. Extending the funding fee increases a veteran's 
monthly cost by about $5 on top of the monthly mortgage. 
Disabled veterans do not pay the funding fee and would not be 
affected by this extension of the home loan fees. The Committee 
believes this short-term extension of current funding fee rates 
is a reasonable way to cover the costs associated with the 
other sections of this bill.

                                Hearings

    On April 10, 2024, the Subcommittee on Disability 
Assistance and Memorial Affairs held a legislative hearing on 
H.R. 7816 and other bills that were pending before the 
subcommittee.
    The following witnesses testified:
          The Honorable Keith Self, U.S. House of 
        Representatives; The Honorable John S. Duarte, U.S. 
        House of Representatives; The Honorable Jahana Hayes, 
        U.S. House of Representatives; Colonel Tiffany M. 
        Wagner, Clerk of the Court, U.S. Court of Appeals for 
        Veterans Claims; Mr. Daniel T. Shedd, Legislative 
        Attorney, American Law Division, Congressional Research 
        Service; The Honorable Jaime Areizaga-Soto, Chairman, 
        Board of Veterans' Appeals, U.S. Department of Veterans 
        Affairs; Ms. Brianne Ogilvie, Assistant Deputy Under 
        Secretary, Office of Policy and Oversight, Veterans 
        Benefits Administration, U.S. Department of Veterans 
        Affairs; Ms. Jessica Pierce, Assistant Director, 
        Compensation Service Policy Staff, U.S. Department of 
        Veterans Affairs; Ms. Candace Wheeler, Director, 
        Government and Legislative Affairs, Tragedy Assistance 
        Program for Survivors; Mr. Christopher Macinkowicz, 
        Deputy Director, National Veterans Service, Veterans of 
        Foreign Wars of the United States; Mr. Andrew Tangen, 
        First Vice President, National Association of County 
        Veterans Service Officers; and Ms. Renee Burbank, 
        Director of Litigation, National Veterans Legal 
        Services Program.
    The following individuals and organizations submitted 
statements for the record:
          The Honorable Dean Phillips, U.S. House of 
        Representatives; The Honorable Marilyn Strickland, U.S. 
        House of Representatives; Paralyzed Veterans of 
        America; Disabled American Veterans; National 
        Organization of Veterans' Advocates, Inc.; 
        Administrative Conference of the United States; The 
        American Legion; and Mr. Michael J. Wishnie.

                       Subcommittee Consideration

    On April 16, 2024, the Subcommittee on Disability 
Assistance and Memorial Affairs met in an open markup session 
on proposed legislation, including H.R. 7816. An amendment in 
the nature of a substitute to H.R. 7816 offered by Rep. 
Luttrell was adopted by voice vote and the bill was ordered 
favorably forwarded for consideration by the full Committee on 
Veterans' Affairs. The amendment in the nature of a substitute 
clarified that the contracted third-party research entity would 
be required to consult with VA, legal experts, and veterans' 
advocates when conducting the assessment of VA notice 
correspondence.

                        Committee Consideration

    On May 1, 2024, the full Committee met in open markup 
session, a quorum being present, and ordered H.R. 7816, as 
amended, be reported favorably to the House of Representatives 
by voice vote. During consideration of the bill, the following 
amendments were considered:
          An amendment in the nature of a substitute offered by 
        Chairman Bost removed the requirement that all the 
        third-party research entity's recommendations in its 
        assessment must be compliant with law. The amendment 
        also clarified that the Secretary would be required to 
        implement the recommendations that are compliant with 
        law within one year. The amendment would also extend 
        current rates for VA home loan funding fees to pay for 
        mandatory costs. The amendment in the nature of a 
        substitute was approved by voice vote.
    A motion by Ranking Member Takano to report H.R. 7816, as 
amended, favorably to the House of Representatives was agreed 
to by voice vote.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, no recorded votes were taken on 
amendments or in connection with ordering H.R. 7816, as 
amended, reported to the House.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives of H.R. 7816, as amended, are to ensure 
veterans and their families receive understandable notices from 
VA such that they can pursue, and make informed decisions 
concerning, their claims for VA benefits.

                  Earmarks and Tax and Tariff Benefits

    H.R. 7816, as amended, does not contain any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    The Committee adopts as its own the Congressional Budget 
Office cost estimate on this measure.

     Budget Authority and Congressional Budget Office Cost Estimate

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    H.R. 7816 would increase the fees that the Department of 
Veterans Affairs (VA) charges borrowers for its home loan 
guarantees. The bill would also require VA to enter into an 
agreement with a federally funded research and development 
center (FFRDC) to assess notices that it sends to people who 
have applied for VA benefits.
    Direct spending: VA provides loan guarantees to lenders 
that allow eligible borrowers to obtain better loan terms--such 
as lower interest rates or smaller down payments--to purchase, 
construct, improve, or refinance a home. VA typically pays 
lenders up to 25 percent of the outstanding mortgage balance if 
a borrower's home is foreclosed upon. Those payments, net of 
fees paid by borrowers and recoveries by lenders, constitute 
the subsidy cost for the loan guarantees. That subsidy cost is 
reflected in the federal budget as direct spending.
    Under current law, the rates for most of the fees that 
borrowers pay to VA for loans guaranteed after November 15, 
2031, will drop from a weighted average of about 2.3 percent to 
about 1.2 percent of the loan amount. Section 3 of the bill 
would extend the higher rates through November 29, 2031, 
thereby reducing the subsidy cost of loans guaranteed during 
that period. Using its forecast of loan volume based on data 
provided by VA, CBO estimates that extending the higher rates 
would decrease direct spending by $22 million over the 2024-
2034 period (See Table 1).

                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 7816
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   By fiscal year, millions of dollars--
                                                 -------------------------------------------------------------------------------------------------------
                                                                                                                                           2024-   2024-
                                                   2024    2025    2026    2027    2028    2029    2030    2031    2032    2033    2034    2029    2034
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            DECREASES (-) IN DIRECT SPENDING
 
Budget Authority................................       0       0       0       0       0       0       0       0     -22       0       0       0     -22
Estimated Outlays...............................       0       0       0       0       0       0       0       0     -22       0       0       0     -22
 
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization.........................       0       1       1       0       0       0       0       0       0       0       0       2       2
Estimated Outlays...............................       0       1       1       0       0       0       0       0       0       0       0       2       2
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Spending subject to appropriation: Section 2 of H.R. 7816 
would require VA to enter into an agreement with an FFRDC to 
assess notices sent to claimants for benefits administered by 
VA. (FFRDCs are public-private partnerships between the federal 
government and universities or corporations that conduct 
research and development for the federal government.) The FFRDC 
would assess whether such notices may be altered to reduce 
paper consumption and costs to the federal government and 
provide recommendations on ways to make such notices clearer 
and more concise. The bill would require VA to submit the 
assessment to the Congress and implement any such 
recommendations within one year of receipt, provided the 
recommendations comply with current law.
    Using information on the cost of similar studies, CBO 
estimates that the assessment would cost $1 million in fiscal 
year 2025. Based on information from VA, CBO estimates that it 
would cost the department $1 million to analyze and implement 
the assessment's recommendations. In total, implementing 
section 2 would cost $2 million over the 2024-2034 period. Such 
spending would be subject to the availability of 
appropriations.
    The CBO staff contacts for this estimate are Paul B.A. 
Holland (home loans) and Logan Smith (other VA costs). The 
estimate was reviewed by Christina Hawley Anthony, Deputy 
Director of Budget Analysis.

                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

                       Federal Mandates Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) is inapplicable to H.R. 7816, 
as amended.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
7816, as amended.

                  Applicability to Legislative Branch

    The Committee finds that H.R. 7816, as amended, does not 
relate to the terms and conditions of employment or access to 
public services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

              Statement on Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 7816, as amended, would establish or reauthorize a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 would establish the short title of the bill as 
the ``Clear Communication for Veterans Claims Act.''

Section 2. Independent assessment of notices that the Secretary of 
        Veterans Affairs sends to claimants

    Section 2 would require the VA Secretary to enter into an 
agreement with a Federally Funded Research and Development 
Center to assess the notices that VA sends to claimants--in 
consultation with VA, legal experts, and veterans' advocates--
and provide recommendations to make VA notices clearer to 
claimants, better organized, and more concise, as well as 
consume less paper.
    This section would also require the Secretary, no later 
than 90 days after receiving the assessment, to submit a copy 
of the assessment to the Committees on Veterans' Affairs of the 
Senate and House of Representatives. And this section would 
require the Secretary, no later than 90 days after receiving 
the assessment, to begin to implementing the recommendations 
that are compliant with law, and to complete such 
implementation within one year.

Section 3. Modification of certain housing loan fees

    Section 3 would extend current rates for VA home loan 
funding fees as established in section 3729 of title 38, U.S.C. 
from November 15, 2031 to November 29, 2031.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 38, UNITED STATES CODE



           *       *       *       *       *       *       *
PART III--READJUSTMENT AND RELATED BENEFITS

           *       *       *       *       *       *       *


CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS

           *       *       *       *       *       *       *


SUBCHAPTER III--ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *


Sec. 3729. Loan fee

  (a) Requirement of Fee.--(1) Except as provided in subsection 
(c), a fee shall be collected from each person obtaining a 
housing loan guaranteed, insured, or made under this chapter, 
and each person assuming a loan to which section 3714 of this 
title applies. No such loan may be guaranteed, insured, made, 
or assumed until the fee payable under this section has been 
remitted to the Secretary.
  (2) The fee may be included in the loan and paid from the 
proceeds thereof.
  (b) Determination of Fee.--(1) The amount of the fee shall be 
determined from the loan fee table in paragraph (2). The fee is 
expressed as a percentage of the total amount of the loan 
guaranteed, insured, or made, or, in the case of a loan 
assumption, the unpaid principal balance of the loan on the 
date of the transfer of the property.
  (2) The loan fee table referred to in paragraph (1) is as 
follows:


 
----------------------------------------------------------------------------------------------------------------
             Type of loan                Active duty  veteran          Reservist              Other obligor
----------------------------------------------------------------------------------------------------------------
(A)(i) Initial loan described in       2.15                     2.40                     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, 2004, and before January
 1, 2020).
(A)(ii) Initial loan described in      2.30                     2.30                     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
 January 1, 2020, and before April 7,
 2023).
(A)(iii) Initial loan described in     2.15                     2.15                     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
 April 7, 2023, and before [November
 15, 2031] November 29, 2031 ).
(A)(iv) Initial loan described in      1.40                     1.40                     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
 [November 15, 2031] November 29,
 2031 ).
(B)(i) Subsequent loan described in    3.30                     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 on or
 after October 1, 2004, and before
 January 1, 2020).
(B)(ii) Subsequent loan described in   3.60                     3.60                     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 January 1, 2020, and before
 April 7, 2023).
(B)(iii) Subsequent loan described in  3.30                     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 on or
 after April 7, 2023, and before
 [November 15, 2031] November 29,
 2031 ).
(B)(iv) Subsequent loan described in   1.25                     1.25                     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 [November 15, 2031] November
 29, 2031 ).
(C)(i) Loan described in section       1.50                     1.75                     NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed before
 January 1, 2020).
(C)(ii) Loan described in section      1.65                     1.65                     NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed on or
 after January 1, 2020, and before
 April 7, 2023).
(C)(iii) Loan described in section     1.50                     1.50                     NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed on or
 after April 7, 2023, and before
 [November 15, 2031] November 29,
 2031 ).
(C)(iv) Loan described in section      0.75                     0.75                     NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed on or
 after [November 15, 2031] November
 29, 2031 ).
(D)(i) Loan described in section       1.25                     1.50                     NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed before
 January 1, 2020).
(D)(ii) Loan described in section      1.40                     1.40                     NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed on or
 after January 1, 2020, and before
 April 7, 2023).
(D)(iii) Loan described in section     1.25                     1.25                     NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed on or
 after April 7, 2023, and before
 [November 15, 2031] November 29,
 2031 ).
(D)(iv) Loan described in section      0.50                     0.50                     NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed on or
 after [November 15, 2031] November
 29, 2031 ).
(E) Interest rate reduction            0.50                     0.50                     NA
 refinancing loan.
(F) Direct loan under section 3711...  1.00                     1.00                     NA
(G) Manufactured home loan under       1.00                     1.00                     NA
 section 3712 (other than an interest
 rate reduction refinancing loan).
(H) Loan to Native American veteran    1.25                     1.25                     NA
 under section 3762 (other than an
 interest rate reduction refinancing
 loan).
(I) Loan assumption under section      0.50                     0.50                     0.50
 3714.
(J) Loan under section 3733(a).......  2.25                     2.25                     2.25.
----------------------------------------------------------------------------------------------------------------

  (3) Any reference to a section in the ``Type of loan'' column 
in the loan fee table in paragraph (2) refers to a section of 
this title.
  (4) For the purposes of paragraph (2):
          (A) The term ``active duty veteran'' means any 
        veteran eligible for the benefits of this chapter other 
        than a Reservist.
          (B) The term ``Reservist'' means a veteran described 
        in section 3701(b)(5)(A) of this title who is eligible 
        under section 3702(a)(2)(E) of this title.
          (C) The term ``other obligor'' means a person who is 
        not a veteran, as defined in section 101 of this title 
        or other provision of this chapter.
          (D)(i) The term ``initial loan'' means a loan to a 
        veteran guaranteed under section 3710 or made under 
        section 3711 of this title if the veteran has never 
        obtained a loan guaranteed under section 3710 or made 
        under section 3711 of this title.
          (ii) If a veteran has obtained a loan guaranteed 
        under section 3710 or made under section 3711 of this 
        title and the dwelling securing such loan was 
        substantially damaged or destroyed by a major disaster 
        declared by the President under section 401 of the 
        Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5170), the Secretary shall 
        treat as an initial loan, as defined in clause (i), the 
        next loan the Secretary guarantees or makes to such 
        veteran under section 3710 or 3711, respectively, if--
                  (I) such loan is guaranteed or made before 
                the date that is three years after the date on 
                which the dwelling was substantially damaged or 
                destroyed; and
                  (II) such loan is only for repairs or 
                construction of the dwelling, as determined by 
                the Secretary.
          (E) The term ``subsequent loan'' means a loan to a 
        veteran, other than an interest rate reduction 
        refinancing loan, guaranteed under section 3710 or made 
        under section 3711 of this title that is not an initial 
        loan.
          (F) The term ``interest rate reduction refinancing 
        loan'' means a loan described in section 3710(a)(8), 
        3710(a)(9)(B)(i), 3710(a)(11), 3712(a)(1)(F), or 
        3762(h) of this title.
          (G) The term ``0-down'' means a downpayment, if any, 
        of less than 5 percent of the total purchase price or 
        construction cost of the dwelling.
          (H) The term ``5-down'' means a downpayment of at 
        least 5 percent or more, but less than 10 percent, of 
        the total purchase price or construction cost of the 
        dwelling.
          (I) The term ``10-down'' means a downpayment of 10 
        percent or more of the total purchase price or 
        construction cost of the dwelling.
  (c) Waiver of Fee.--(1) A fee may not be collected under this 
section from a veteran who is receiving compensation (or who, 
but for the receipt of retirement pay or active service pay, 
would be entitled to receive compensation), from a surviving 
spouse of any veteran (including a person who died in the 
active military, naval, air, or space service) who died from a 
service-connected disability, or from a member of the Armed 
Forces who is serving on active duty and who provides, on or 
before the date of loan closing, evidence of having been 
awarded the Purple Heart.
  (2)(A) A veteran described in subparagraph (B) shall be 
treated as receiving compensation for purposes of this 
subsection as of the date of the rating described in such 
subparagraph without regard to whether an effective date of the 
award of compensation is established as of that date.
  (B) A veteran described in this subparagraph is a veteran who 
is rated eligible to receive compensation--
          (i) as the result of a pre-discharge disability 
        examination and rating; or
          (ii) based on a pre-discharge review of existing 
        medical evidence (including service medical and 
        treatment records) that results in the issuance of a 
        memorandum rating.

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