Sec. 2. AUTHORITY OF THE SECRETARY OF VETERANS AFFAIRS TO TAKE CERTAIN ACTIONS IN THE CASE OF A DEFAULT ON A HOME LOAN GUARANTEED BY THE SECRETARY
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## SEC. 2 AUTHORITY OF THE SECRETARY OF VETERANS AFFAIRS TO TAKE CERTAIN ACTIONS IN THE CASE OF A DEFAULT ON A HOME LOAN GUARANTEED BY THE SECRETARY ###
(a)In General Section 3732 of title 38, United States Code, is amended— ####
(1)in subsection (a)— #####
(A)in paragraph (1), by striking “obligation” each place it appears and inserting “loan”; #####
(B)in paragraph (2)— ######
(i)by amending subparagraph
(A)to read as follows: > > ##### “(A) > > The Secretary may, under terms and conditions determined by the Secretary— > > > ###### “(i) > > pay the holder of a loan guaranteed under this chapter an amount necessary to avoid the foreclosure of such loan; > > > ###### “(ii) > > require the holder of the loan and the veteran obligated on the loan to execute all documents necessary to ensure the Secretary obtains a secured interest in the property covered by the loan; and > > > ###### “(iii) > > require the holder of the loan to take any actions necessary to carry out this paragraph, including preparing, executing, transmitting, receiving, and recording documents, and requiring the holder of the loan to place the loan in forbearance.” > ; ######
(ii)in subparagraph (B), by striking “obligation” each place it appears and inserting “housing loan”; and ######
(iii)by adding at the end the following new subparagraphs: > > ##### “(C) > > > ######
(i)> > Any decision by the Secretary under this paragraph is final and is not subject to judicial review. > > > ###### “(ii) > > For purposes of section 511 of this title, any decision under this paragraph shall not be treated as a decision under a law that affects the provision of benefits. > > > ##### “(D) > > > ######
(i)> > The Secretary may establish standards for processing payments under this paragraph based on a certification by a holder of a loan guaranteed under this chapter that the holder has complied with all applicable requirements established by the Secretary. > > > ###### “(ii) > > The Secretary shall carry out, on a random-sampling basis, post-payment audits to ensure compliance with all requirements described in clause (i).” > ; and #####
(C)in paragraph (5), by striking “obligation” and inserting “loan”; ####
(2)in subsection (c)— #####
(A)in paragraph (1), in the matter preceding subparagraph (A), by striking “subsection—” and inserting “subsection:”; and #####
(B)in paragraph (10)(B)(i), by striking “forebearance” each place it appears and inserting “forbearance”; and ####
(3)by adding at the end the following new subsection: > > ### “(d) > > The Secretary shall prescribe loss mitigation procedures, including a mandatory sequence in which the holder of a loan guaranteed under this chapter shall offer loss mitigation options (including an option to enter into a partial claim agreement under the VA Home Loan Program Reform Act) to a veteran, to help prevent the foreclosure of such loan. The Secretary may not purchase an entire such loan until the veteran has completed such sequence.” > . ###
(b)Relationship to Other Powers of Secretary Section 3720 of such title is amended— ####
(1)in subsection (a), by striking “Notwithstanding” and inserting “Except as provided in subsection (h), notwithstanding”; ####
(2)by redesignating subsections
(f)through
(h)as subsections
(e)through (g), respectively; and ####
(3)by adding at the end the following new subsection (h): > > ### “(h) > > The Secretary may not take any action under paragraph (2), (3), (4), or
(5)of subsection
(a)with respect to a loan guaranteed under this chapter before the completion of the sequence of mitigation options offered to the veteran to whom the loan is made under section 3732(d) of this title.” > .