Sec. 7307. IMPROVEMENTS TO PARTIAL CLAIM PROGRAM OF THE DEPARTMENT OF VETERANS AFFAIRS

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## SEC. 7307 IMPROVEMENTS TO PARTIAL CLAIM PROGRAM OF THE DEPARTMENT OF VETERANS AFFAIRS ###

(a)Clarification of Relationship to Other Powers of Secretary Section 3720(h) of title 38, United States Code, is amended by striking “of subsection (a)” and all that follows through the period at the end and inserting “of subsection

(a)in conjunction with the purchase of a loan under section 3732(a)(2) of this title unless the Secretary determines the purchase would be made consistent with section 3732(d) of this title.”. ###

(b)Administration of Partial Claim Program Section 3737 of such title is amended— ####

(1)in subsection (b)(2), by striking “first lien guaranteed loan for such property” and inserting “amount of indebtedness under the guaranteed loan that the Secretary does not purchase”; and ####

(2)in subsection (c)— #####

(A)in paragraph (2)(B)(ii), by striking “120 days” and inserting “180 days”; and #####

(B)by amending paragraph

(3)to read as follows: > > #### “(3) > > An amount paid to the holder of a loan as a partial claim— > > > ##### “(A) > > shall not alter the guaranty calculation specified by section 3703 of this title; > > > ##### “(B) > > shall be included, for the purpose of a liquidation sale, in the same manner as any other advance allowed by the Secretary; and > > > ##### “(C) > > shall not be claimed under the guaranty or increase the Secretary’s cost of acquisition of the property securing the defaulted loan.” > . ###

(c)Requirements of Loan Holder Section (d)(1) of such section is amending by inserting “and servicing the loan” after “documents”. ###

(d)Default and Foreclosure Subsection

(e)of such section is amended— ####

(1)in paragraph (1)— #####

(A)in subparagraph (A), by striking “an individual who” and all that follows through the period at the end and inserting the following: “a borrower who defaults on a partial claim shall be liable to the Secretary for any loss suffered by the Secretary with respect to such default, and such loss may be recovered in the same manner as any other debt due the United States. The Secretary shall 139 STAT. 652 not restore housing loan entitlement under section 3702(b) of this title until such loss is repaid in full.”; and #####

(B)by amending subparagraph

(B)to read as follows: > > ##### “(B) > > The Secretary may charge administrative costs, fees, and interest, as appropriate, with respect to any default under a partial claim in a manner similar to the interest and administrative costs charged under section 5315 of this title.” > ; and ####

(2)by amending paragraph

(2)to read as follows: > > #### “(2) > > Notwithstanding section 2410 of title 28, a non-judicial sale of real property to satisfy a loan guaranteed under this chapter shall discharge the property from a partial claim interest held by the Secretary, provided that the holder of the guaranteed loan conducts the non-judicial sale and distributes the sale proceeds, if any, in accordance with the State or local law where such property is situated.” > . ###

(e)Guidance in Advance of Regulations Subsection

(h)of such section is amended to read as follows: > > ### “(h) Guidance in Advance of Regulations > > Notwithstanding any other provision of law, the Secretary may, before prescribing regulations, issue administrative guidance with respect to the Partial Claim Program under this section and the loss mitigation options prescribed under section 3732(d) of this title, including any additional terms, conditions, and requirements the Secretary determines necessary.” > .