[House Report 118-599]
[From the U.S. Government Publishing Office]


118th Congress }                                          { Report 
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                          { 118-599

======================================================================
 
              VETERANS SCAM AND FRAUD EVASION ACT OF 2024

                                _______
                                

 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

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 6452]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 6452) to amend title 38, United States Code, to 
establish in the Department of Veterans Affairs a Veterans Scam 
and Fraud Evasion Officer, 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..............................................     3
Background and Need for Legislation..............................     3
Hearings.........................................................     4
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........     6
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...................     8
Changes in Existing Law Made by the Bill, as Reported............     9
Minority Views...................................................    17

    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 ``Veterans Scam and Fraud Evasion Act of 
2024'' or the ``VSAFE Act of 2024''.

SEC. 2. VETERANS SCAM AND FRAUD EVASION OFFICER.

  (a) In General.--Chapter 3 of title 38, United States Code, is 
amended by adding at the end the following new section:

``Sec. 325. Veterans Scam and Fraud Evasion Officer

  ``(a) Establishment.--There is in the Department a Veterans Scam and 
Fraud Evasion Officer, who shall be responsible for fraud and scam 
prevention, reporting, and incident response plans at the Department.
  ``(b) Responsibilities.--The Veterans Scam and Fraud Evasion Officer 
shall carry out the following responsibilities:
          ``(1) Providing comprehensive communication from the 
        Department to Department employees and veterans, their 
        families, caregivers, and survivors during strategic and time-
        sensitive fraud and scam incidents.
          ``(2) Establishing consistent guidance across the enterprise 
        for employees as well as veterans, their families, caregivers, 
        and survivors on how to identify, report, and avoid fraud and 
        scam attempts.
          ``(3) Promoting the Veteran Identity Health Theft Helpline of 
        the Department (and any successor resource) and identifying 
        other identity theft resources available to veterans, their 
        families, caregivers, and survivors, including with respect to 
        actions made by the Secretary to protect the identities of 
        veterans and their beneficiaries.
          ``(4) Developing methods to monitor fraud and scam metrics 
        within the Department to--
                  ``(A) provide internal and external reporting;
                  ``(B) enable advanced data analytics; and
                  ``(C) facilitate proactive and robust fraud and scam 
                trend identification.
          ``(5) Developing comprehensive training plans for Department 
        employees fielding fraud and scam inquiries and reports.
          ``(6) Coordinating with the Inspector General of the 
        Department and other Federal departments and agencies, 
        including the Executive Office of the President, the Office of 
        Management and Budget, the Internal Revenue Service, the 
        Department of Justice, the Department of State, the Consumer 
        Financial Protection Bureau, the Department of Defense, the 
        Department of Education, the Social Security Administration, 
        and other relevant agencies to--
                  ``(A) create a whole-of-Government view within the 
                Department with respect to the fraud prevention efforts 
                at other Federal departments and agencies;
                  ``(B) identify the proper avenues for veterans to 
                report fraud attempts and receive assistance; and
                  ``(C) identify opportunities for coordination with 
                such departments and agencies.
          ``(7) Consulting with veterans service organizations and 
        State, local, and tribal governments, as necessary, to improve 
        the understanding of fraud and scam risks within the 
        Department.
  ``(c) Full-time Employees.--Nothing in this section authorizes an 
increase in the number of full-time employees otherwise authorized for 
the Department.
  ``(d) Rule of Construction.--Nothing in this section shall be 
construed to limit the authority of the Office of Inspector General of 
the Department as otherwise provided in this title or in chapter 4 of 
title 5 (commonly referred to as the Inspector General Act of 1978).''.
  (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``325. Veterans Scam and Fraud Evasion Officer.''.

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. 6452, the ``Veterans Scam and Fraud Evasion Act of 
2024,'' was introduced by Representative Elise Stefanik of New 
York on November 17, 2023. The bill, as amended, would 
establish a Veterans Scam and Fraud Evasion Officer within in 
the U.S. Department of Veterans Affairs (VA), who would lead 
the office and be tasked with coordinating the fraud and scam 
prevention efforts of agencies external to VA with the fraud 
and scam prevention efforts undertaken within VA. The Officer 
would be responsible for VA's fraud and scam prevention, 
reporting, and incident response plans. The bill, as amended, 
would also provide an offset for the costs associated with this 
requirement 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 Scam and Fraud 
Evasion Act of 2024,'' or the ``VSAFE Act of 2024.''

Section 2. Veterans Scam and Fraud Evasion Officer

    The Federal Trade Commission (FTC) receives hundreds of 
thousands of reports of fraud and scams from the veteran and 
miliary community. According to FTC data, veterans reported 
$350 million in fraud losses in 2023 alone.\1\ Historically, VA 
has had several organizations dedicated to combatting veteran 
fraud and scams. However, Committee oversight suggests these 
efforts are redundant and ineffective. Currently, the office is 
not codified, and therefore could be removed by a future 
administration. Without a permanent legislative solution, 
veterans remain vulnerable to scams and fraudsters.
---------------------------------------------------------------------------
    \1\Disabled American Veterans, There's a Bill to Protect Veterans 
from Scams and Fraud, (Mar. 21, 2024), https://www.dav.org/learn-more/
news/2024/theres-a-bill-to-protect-veterans-from-scams
-and-fraud/.
---------------------------------------------------------------------------
    The Committee believes this section would protect veterans 
against fraudsters and scammers by establishing a VA Veterans 
Scam and Fraud Evasion Officer who would be responsible for 
fraud and scam prevention, reporting, and incident response 
plans. The Officer would also have additional responsibilities, 
including alerting and establishing guidance to Veterans and 
Department employees when scam instances occur; promoting the 
Veteran Identity Health Theft Hotline; developing a training 
curriculum for Veterans and Department employees to identify 
scam and frauds; and creating a whole-of-government approach 
with other federal agencies to combat scams and fraud.

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 sections of this bill by extending the current rates for 
VA home loan funding fees by two weeks to November 29, 2031. 
Extending the funding fee increases a veteran's monthly costs 
by about five dollars 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 Thursday, March 21, 2024, the Subcommittee on Oversight 
and Investigations held a legislative hearing on H.R. 6452 and 
other bills that were pending before the Subcommittee.
    The following witnesses testified:
          Mr. John W. Boerstler, Chief Veterans Experience 
        Office, Office of Human Resources and Administration/
        Operations, Security, and Preparedness (HRA/OSP), U.S. 
        Department of Veterans Affairs; Ms. Tracey Therit, 
        Chief Human Capital Officer, HRA/OSP, U.S. Department 
        of Veterans Affairs; Mr. David Perry, Chief Officer, 
        Workforce Management and Consulting, Veterans Health 
        Administration, U.S. Department of Veterans Affairs; 
        Mr. Charles Worthington, Chief Technology Officer, 
        Office of Information Technology, U.S. Department of 
        Veterans Affairs; and Ms. Joycelyn Westbrooks, 
        Registered Nurse, Secretary-Treasurer, American 
        Federation of Government Employees Local 1633, U.S. 
        Department of Veterans Affairs.
    The following individuals and organizations submitted 
statements for the record:
          American Association of Nurse Anesthesiology, 
        National Federation of Federal Employees, Service 
        Employees International Union, Paralyzed Veterans of 
        America, Representative Brandon Williams (NY-22), 
        Senior Executives Association, Representative Mike 
        Turner (OH-10), and United Nurses Association of 
        California/Union of Health Care Professionals.

                       Subcommittee Consideration

    On Wednesday, April 17, 2024, the Subcommittee on Oversight 
and Investigations held a markup on the legislation included in 
the text of this bill.
    An amendment in the nature of a substitute to H.R. 6452, 
offered by Subcommittee Chairwoman Kiggans, was adopted by 
voice vote and the bill was forwarded favorably to the Full 
Committee on Veterans' Affairs. The amendment in the nature of 
a substitute would make minor changes to the original bill text 
to make clear that H.R. 6452 would not take scam and fraud 
evasion responsibilities away from the Office of Inspector 
General. Further, the amendment in the nature of a substitute 
added language that would require VA to coordinate with tribal 
governments in the Department's efforts to identify, report, 
and prevent scam and fraud attempts towards veterans living on 
tribal land.
    A motion by Representative Bergman to report H.R. 6452, as 
amended, was favorably forwarded to the Full Committee on 
Veterans' Affairs.

                        Committee Consideration

    On Wednesday, May 1, 2024, the Full Committee met in open 
markup session, a quorum being present, and ordered H.R. 6452, 
as amended, be reported favorably to the House of 
Representatives by a voice vote. During consideration of the 
bill, the following amendments were considered:
    1. An amendment in the nature of a substitute offered by 
Chairman Bost that would add necessary offsets added in section 
three. The amendment in the nature of a substitute passed by 
voice vote.
    2. An amendment to the amendment in the nature of a 
substitute offered by Ranking Member Takano to strike a 
provision from the base text that would institute a cap on the 
number of full-time employees that could be hired for the 
veteran scam and fraud evasion effort. An amendment to the 
amendment in the nature of a substitute failed to pass by voice 
vote.
    A motion by Representative Bergman to report H.R. 6452, 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. 6452, 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. 6452, as amended, are to establish 
a VA Veterans Scam and Fraud Evasion Officer responsible for 
preventing, identifying, and reporting fraud and scams against 
veterans and ensuring that Department employees and veterans 
have the guidance and training to identify and avoid scam and 
fraud attempts.

                  Earmarks and Tax and Tariff Benefits

    H.R. 6452, 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 cost estimate on H.R. 
6452, as amended, prepared by the Director of the Congressional 
Budget Office.

            Budget Authority and Congressional Budget Office
                             Cost Estimate




    H.R 6452 would establish a Veterans Scam and Fraud Evasion 
Officer within the Department of Veterans Affairs (VA). The 
bill also would increase the fees that VA charges borrowers for 
its home loan guarantees. Implementing the bill would increase 
spending subject to appropriation by $12 million and reduce 
direct spending by $22 million over the 2024-2034 period, CBO 
estimates.
    Spending subject to appropriation: Under the bill, the 
Veterans Scam and Fraud Evasion Officer would be responsible 
for coordinating efforts to protect veterans from frauds and 
scams. The officer would promote resources for preventing 
frauds and scams, provide training to department employees, and 
coordinate with similar efforts of other federal agencies. 
Using information from VA, CBO estimates the department would 
require four full-time equivalent employees (the new officer 
and three support staff) to satisfy the bill's requirements. 
Compensation, benefits, and operating expenses would total $1 
million in 2025, CBO estimates. After adjusting for inflation, 
staffing and operating the office would cost $12 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. 6452
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     By fiscal year, millions of dollars--
                                                     ---------------------------------------------------------------------------------------------------
                                                       2024   2025   2026   2027   2028   2029   2030   2031   2032    2033   2034  2024-2029  2024-2034
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     Increases in Spending Subject to Appropriation
 
Estimated Authorization.............................      *      1      1      1      1      1      1      1       1      2      2         5         12
Estimated Outlays...................................      *      1      1      1      1      1      1      1       1      2      2         5         12
 
                                                            Decreases (-) in Direct Spending
 
Estimated 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* = between zero and $500,000.

    Direct spending: H.R. 6452 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\ That subsidy is reflected in the budget as 
direct spending.
---------------------------------------------------------------------------
    \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 CBO staff contacts for this estimate are Logan Smith 
(for other VA costs) and Paul B.A. Holland (for home loans). 
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. 6452, 
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. 
6452, as amended.

                  Applicability to Legislative Branch

    The Committee finds that H.R. 6452, 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. 6452, as amended, establishes or reauthorizes 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 P.L. 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

    This section would establish the short title of the bill as 
the ``Veterans Scam and Fraud Evasion Act of 2024,'' or the 
``VSAFE Act of 2024.''

Section 2: Veterans Scam and Evasion Officer

    Section 2(a) would amend Chapter Three of Title 38 U.S.C. 
by adding a new section, Sec. 325.
    The new 38 U.S.C. Sec. 325(a) would establish a Veterans 
Scam and Fraud Evasion Officer who is responsible for fraud and 
scam prevention, reporting, and incident response plans at VA.
    The new 38 U.S.C. Sec. 325(b) would designate the following 
responsibilities to the Veterans Scam and Fraud Evasion 
Officer: (1) provide comprehensive communication from VA to VA 
employees and veterans, their families, caregivers, and 
survivors during strategic and time-sensitive fraud and scam 
incidents; (2) establish guidance for VA employees and 
veterans, their families, caregivers, and survivors on how to 
identify, report, and avoid fraud and scam attempts; (3) 
promote the Veteran Identity Health Theft Helpline and identify 
other identity theft resources available to veterans, their 
families, caregivers, and survivors, including actions made by 
the Secretary to protect the identifies of veterans and their 
beneficiaries; (4) develop metrics to monitor and track scam 
attempts within VA to provide internal and external reporting, 
enable advanced data analytics, and facilitate proactive and 
robust fraud and scam identification; (5) develop training 
plans for VA employees fielding fraud and scam inquiries and 
reports; (6) coordinate with the VA Inspector General and other 
federal departments and agencies to create a whole-of-
government view within VA regarding the fraud and prevention 
efforts at other federal departments and agencies, identify 
proper avenues for veterans to report fraud attempts and 
receive assistance, and identify opportunities for coordination 
with other federal departments and agencies; (7) consult with 
veteran service organizations and state, local, and tribal 
governments to improve understanding of fraud and scam risk 
within VA.
    The new 38 U.S.C. Sec. 325(c) would make clear nothing in 
Sec. 325 authorizes an increase in the number of full-time 
employees otherwise authorized for VA.
    Finally, the new 38 U.S.C. Sec. 325(d) would make clear 
nothing in Sec. 325 should be construed to limit the authority 
of VA's Inspector General as otherwise provided in Title 38 or 
in Chapter 4 of Title 5, U.S.C.
    Section 2(b) would amend the table of sections at the 
beginning of Title 38 U.S.C. Chapter 3 by adding ``325. 
Veterans Scam and Fraud Evasion Officer.''

Section 3: Modification of certain housing loan fees

    This section would amend 38 U.S.C. Sec. 3729(b)(2) by 
striking ``November 15, 2031'' each place it appears and 
inserting ``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 I--GENERAL PROVISIONS

           *       *       *       *       *       *       *


               CHAPTER 3--DEPARTMENT OF VETERANS AFFAIRS

Sec.
     * * * * * * *
325. Veterans Scam and Fraud Evasion Officer.

           *       *       *       *       *       *       *


Sec. 325. Veterans Scam and Fraud Evasion Officer

  (a) Establishment.--There is in the Department a Veterans 
Scam and Fraud Evasion Officer, who shall be responsible for 
fraud and scam prevention, reporting, and incident response 
plans at the Department.
  (b) Responsibilities.--The Veterans Scam and Fraud Evasion 
Officer shall carry out the following responsibilities:
          (1) Providing comprehensive communication from the 
        Department to Department employees and veterans, their 
        families, caregivers, and survivors during strategic 
        and time-sensitive fraud and scam incidents.
          (2) Establishing consistent guidance across the 
        enterprise for employees as well as veterans, their 
        families, caregivers, and survivors on how to identify, 
        report, and avoid fraud and scam attempts.
          (3) Promoting the Veteran Identity Health Theft 
        Helpline of the Department (and any successor resource) 
        and identifying other identity theft resources 
        available to veterans, their families, caregivers, and 
        survivors, including with respect to actions made by 
        the Secretary to protect the identities of veterans and 
        their beneficiaries.
          (4) Developing methods to monitor fraud and scam 
        metrics within the Department to--
                  (A) provide internal and external reporting;
                  (B) enable advanced data analytics; and
                  (C) facilitate proactive and robust fraud and 
                scam trend identification.
          (5) Developing comprehensive training plans for 
        Department employees fielding fraud and scam inquiries 
        and reports.
          (6) Coordinating with the Inspector General of the 
        Department and other Federal departments and agencies, 
        including the Executive Office of the President, the 
        Office of Management and Budget, the Internal Revenue 
        Service, the Department of Justice, the Department of 
        State, the Consumer Financial Protection Bureau, the 
        Department of Defense, the Department of Education, the 
        Social Security Administration, and other relevant 
        agencies to--
                  (A) create a whole-of-Government view within 
                the Department with respect to the fraud 
                prevention efforts at other Federal departments 
                and agencies;
                  (B) identify the proper avenues for veterans 
                to report fraud attempts and receive 
                assistance; and
                  (C) identify opportunities for coordination 
                with such departments and agencies.
          (7) Consulting with veterans service organizations 
        and State, local, and tribal governments, as necessary, 
        to improve the understanding of fraud and scam risks 
        within the Department.
  (c) Full-time Employees.--Nothing in this section authorizes 
an increase in the number of full-time employees otherwise 
authorized for the Department.
  (d) Rule of Construction.--Nothing in this section shall be 
construed to limit the authority of the Office of Inspector 
General of the Department as otherwise provided in this title 
or in chapter 4 of title 5 (commonly referred to as the 
Inspector General Act of 1978).

           *       *       *       *       *       *       *


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] 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] 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] 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] 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] 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] 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] 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] 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.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    At the full Committee markup on May 1, 2024, Ranking Member 
Takano introduced an Amendment to the Amendment in the Nature 
of a Substitute to H.R. 6452, which struck a provision from the 
base text that instituted a cap on the number of full-time 
employees (FTE) that could be hired for the Veteran Scam and 
Fraud Evasion (VSAFE) effort. This amendment was not agreed to, 
however, enacting the bill as written would present significant 
challenges that would undermine the bill's proposal to address 
scams and fraud impacting veterans.
    In testimony provided at the Subcommittee on Oversight and 
Investigation's legislative hearing on March 21, 2024, the 
Department of Veterans Affairs (VA) stated:

          VA does not believe the authorization for only one 
        person to serve the function of the VSAFE office will 
        be sufficient; instead, we recommend that, in Section 
        7(c), up to and no more than five (5) full-time 
        employees be authorized to successfully manage the 
        VSAFE operations in VA and across partnering Federal 
        agencies. Given the number of partners involved and the 
        need to develop strong collaboration as well as 
        backstage intervention strategies, a significant 
        investment of time, attention, and expertise will be 
        required. While a single officer may have significant 
        expertise, a team will be needed to be able to forge 
        the deep partnerships, insights, and robust 
        communications necessary for the success of this 
        program.

    There are a number of efforts across the federal government 
that the VSAFE Officer will need to coordinate with, such as 
the White House's Veterans Scam and Fraud Evasion Task Force. 
With a cap on the number of FTE that VA can provide towards 
this effort, the VSAFE program may be under resourced to 
address the growing challenges that veterans and their families 
may face from malicious actors. Legislation to codify this 
function at VA should not put unnecessary limits on the 
resources that may be needed to fulfill that function.
                                               Mark Takano,
                                                    Ranking Member.

                                  [all]