[House Report 118-596]
[From the U.S. Government Publishing Office]
118th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 118-596
======================================================================
CLEAR COMMUNICATION FOR VETERANS CLAIMS ACT
_______
July 18, 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. 7643]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 7643) to amend title 38, United States Code, to
authorize the use of Department of Veterans Affairs work-study
allowance to carry out casework, policy making, and oversight
related to the activities of the Department at certain
congressional offices, 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.............................. 3
Hearings......................................................... 3
Subcommittee Consideration....................................... 4
Committee Consideration.......................................... 4
Committee Votes.................................................. 5
Committee Oversight Findings..................................... 5
Statement of General Performance Goals and Objectives............ 5
Earmarks and Tax and Tariff Benefits............................. 5
Committee Cost Estimate.......................................... 5
Budget Authority and Congressional Budget Office Estimate........ 5
Federal Mandates Statement....................................... 7
Advisory Committee Statement..................................... 7
Applicability to Legislative Branch.............................. 7
Statement on Duplication of Federal Programs..................... 7
Section-by-Section Analysis of the Legislation................... 7
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 und er
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. 7643, the ``Veterans Congressional Work Study Act of
2024,'' was introduced by Rep. Mark Takano of California on
March 12, 2024. The bill, as amended, would expand the
Department of Veterans Affairs (VA) work-study program to
include the House and Senate Committee offices, the
Congressional Research Center, the Government Accountability
Office, and the Congressional Budget Office. This legislation
also would expand work study duties to allow working on policy.
The bill would direct VA to report annually on the number
of work study participants and the agencies and committees
where the work study is being conducted.
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 ``Veterans Congressional Work
Study Act of 2024.''
Section 2: Authorized Activities in Certain Congressional Offices Using
Department of Veterans Affairs Work-Study Allowance
The VA work-study program provides eligible students
enrolled in a program of rehabilitation, education, or training
with employment opportunities to gain relevant experience for
performing VA-related activities. By participating in this
program, veterans have an opportunity to earn money they may
use to help pay for their education. Veterans who participate
must also be able to finish the work-study while they still
qualify for education benefits under an approved VA benefits
education program.
After passage of P.L. 116-315, work-study opportunities
included a VA regional office, a VA health care facility such
as a medical or outpatient center, a VA data processing center,
a VA central office location, a VA cemetery, the Board of
Veterans' Appeals, and the offices of individual Members of
Congress. With such a diverse range of facilities, the program
provides a great opportunity for individuals to find a job that
aligns with their skills and interests. Whether veterans have
experience in healthcare, data processing, or administrative
work, this program offers a chance to work for the VA and make
a positive impact on the lives of veterans.
This legislation would expand work-study to allow veterans
to participate in this program at Committee offices, and other
portions of the Legislative Branch, and would enhance work-
study activities to include working on policy as part of their
duties. The Committee believes that the expansion of work-study
opportunities will provide more veterans with the ability to
serve their fellow veterans and earn extra money and experience
that will prepare them for future careers.
Section 3: Modification of Certain Housing Loan Fees
Currently, veterans who take advantage of the VA home Loan
Program pay a small fee that is included in their monthly
mortgage payment. This section would cover the costs of the
other section of this bill by extending the current rates for
VA home loan funding fees from November 15, 2031, to November
29, 2031. Extending the funding fee increases a veteran's
monthly costs 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 March 20, 2023, the Subcommittee on Economic Opportunity
held a legislative hearing on H.R. 7643 and other bills that
were pending before the subcommittee.
The following witnesses testified:
Ms. Melissa Cohen, Executive Director of Outreach,
Transition, and Economic Development, U.S. Department
of Veterans Affairs; Mr. Nathan Sanfilippo, Executive
Director of Multichannel Technology at Veterans
Experience Office, U.S. Department of Veterans Affairs;
Mr. Thomas Alphonso, Assistant Director of Education
Services, U.S. Department of Veterans Affairs; Mr.
James Rodriguez, Assistant Secretary for Veterans'
Employment and Training Service, U.S. Department of
Labor; Ms. Kristina Keenan, Deputy Director, National
Legislative Service, Veterans of Foreign Wars of the
United States; Mr. Marquis Barefield, Assistant
National Legislative Director, Disabled American
Veterans; Ms. Nadine Bullock-Pottinga, Chief
Development Officer, Hire Heroes USA; Mr. Gregory John,
Founder and President, Infinity Flight Group, and Mr.
Matthew Schwartzman, Director, Legislation and Military
Policy, Reserve Organization of America.
The following organizations and members submitted
statements for the record:
Representative Ken Calvert of California, Disabled
American Veterans, The American Legion, Veterans
Education Success, United Services Automobile
Association, RecruitMilitary, Orion Talent, Military
Talent Pipeline, Semper Forward, and ZeroMils.
Subcommittee Consideration
On April 17, 2024, the Subcommittee on Economic Opportunity
held a markup on the H.R. 7643.
An amendment in the nature of a substitute to H.R.
7643 offered by Subcommittee Chairman Van Orden was
adopted by voice vote and the bill was ordered
favorably forwarded to the full Committee on Veterans
Affairs. The amendment in the nature of a substitute
added in a requirement for annual reporting
requirements for the Secretary to report the number of
work-study participants in each agency and committee if
the bill was enacted.
A motion by Rep. Levin of California to favorably forward
H.R. 7643, as amended, to the full committee was adopted by
voice vote.
Committee Consideration
On May 1, 2024, the full Committee met in open markup
session, a quorum being present, and ordered H.R. 7643, as
amended, to 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
Representative Levin that included the text of H.R.
7643, as adopted by the Subcommittee on Economic
Opportunity. The amendment would also extend current
rates for VA home loan funding fees to November 29,
2031, to pay for programs in the bill.
The amendment in the nature of a substitute, as amended,
was approved by voice vote.
A motion by Ranking Member Takano to report H.R. 7643, 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. 7643 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. 7643, as amended, are to provide
increased employment opportunities for veterans while they are
pursuing an education and after graduation.
Earmarks and Tax and Tariff Benefits
H.R. 7643, 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
H.R. 7643 would make changes to education benefit and home
loan programs administered by the Department of Veterans
Affairs (VA). The costs of both programs are paid from
mandatory appropriations. CBO estimates that enacting the bill
would decrease net direct spending by $17 million over the
2024-2034 period.
Congressional Work-Study. Under current law, VA pays work-
study allowances to students using VA education benefits who
are hired by a VA facility, state veterans agency, educational
institution, or office of a Member of Congress to perform
specified activities related to veteran benefits or services.
That allowance is paid at the higher of the state or federal
minimum wage for up to 25 hours per week during enrollment.
H.R. 7643 would add related work at Congressional committees or
agencies, including policy-making and departmental oversight,
to the authorized activities for which VA may pay work-study
allowances. CBO expects that roughly 25 students located in or
around Washington, D.C. would receive work-study allowances for
activities authorized by the bill. Using information about the
D.C. minimum wage, CBO estimates that allowances paid to those
students would increase direct spending by $5 million over the
2024-2034 period.
The bill also would require VA to report annually to the
Congress on the number of students participating in work-study
activities at Congressional offices, committees, and agencies.
Based on the costs of preparing similar reports, CBO estimates
that satisfying that requirement would cost less than $500,000
over the 2024 2034 period; such spending would be subject to
the availability of appropriated funds.
Homes Loan Fees. H.R. 7643 would increase the fees that VA
charges borrowers for its loan guarantees. 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.\1\
---------------------------------------------------------------------------
\1\Under the Federal Credit Reform Act of 1990, the subsidy cost of
a loan guarantee is the net present value of estimated payments by the
government to cover defaults and delinquencies, interest subsidies, or
other expenses offset by any payments to the government, including
origination or other fees, penalties, and recoveries on defaulted
loans. Such subsidy costs are calculated by discounting those expected
cash flows using the rate on Treasury securities of comparable
maturity. The resulting estimated subsidy costs are recorded in the
budget when the loans are disbursed or modified. A positive subsidy
indicates that the loan results in net outlays from the Treasury; a
negative subsidy indicates that the loan results in net receipts to the
Treasury.
---------------------------------------------------------------------------
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. 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.
The costs of the legislation, detailed in Table 1, fall
within budget function 700 (veterans benefits and services).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 7643
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
-------------------------------------------------------------------------------------------------------------
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2024-2029 2024-2034
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increases or Decreases (-) in Direct Spending
Work-Study................................ * * 1 * 1 * 1 * 1 * 1 2 5
Home Loan Fees............................ 0 0 0 0 0 0 0 0 -22 0 0 0 -22
Total Changes in Direct Spending.......... * * 1 * 1 * 1 * -21 * 1 2 -17
--------------------------------------------------------------------------------------------------------------------------------------------------------
* = between zero and $500,000; budget authority equals outlays for all sections.
In addition to the amounts shown here, implementing the bill would increase spending subject to appropriation by less than $500,000 over the 2024-2034
period.
The CBO staff contact for this estimate is Paul B.A.
Holland. 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. 7643 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.
7643, as amended.
Applicability to Legislative Branch
The Committee finds that H.R. 7643, 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. 7643, 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
``Veterans Congressional Work Study Act of 2024.''
Section 2. Authorized activities in certain congressional offices using
Department of Veterans Affairs work-study allowance
Section 2 would amend 38 U.S.C. Sec. 3485(a)(5) to expand
the VA Work-Study Program to include Committee offices in the
House and Senate as well as several agencies, including the
Congressional Budget Office, Government Accountability Office,
and the Congressional Research Center. Additionally, this
section would require an annual report on how many participants
received work-study allowance at each of the agencies and in
Congressional Committees.
Section 3. Modification of certain housing loan fees
This section would provide funding for these programs
included in the bill by extending current rates for VA home
loan funding fees as established in 38 U.S.C. Sec. 3729 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.
* * * * * * *
[all]