US Codex
Bill
Notes

To amend title 38, United States Code, to provide for a reduction in certain loan fees for certain veterans affected by major disasters.

S. 4656 · 116th Congress · Sep 22, 2020 · Lineage

A BILL

Section 1 Reducing loan fees for certain veterans affected by major disasters

Section 3729(b)(4) of title 38, United States Code, is amended—
(1)
by striking subparagraph (D), and inserting the following new subparagraph (D):

“(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, as determined by the Secretary.”

(2)
in subparagraph (E), by striking “if the veteran has previously obtained a loan guaranteed under section 3710 or made under section 3711 of this title” and inserting “that is not an initial loan”.