Improvements to Partial Claim Program of the Department of Veterans Affairs
Section 7307 · Sec. 7307 ·
What this chapter is about
A veteran behind on a home loan can have the missed sums moved aside. That is a partial claim. This part changes how the program works. It sets what a borrower owes if the claim itself is not paid.
“(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;”
The new paragraph (3) of section 3737(c) of title 38 also provides that the amount is included in a liquidation sale in the same manner as any other advance allowed by the Secretary, and that it may not be claimed under the guaranty or increase the Secretary's cost of acquiring the property.
What the document actually says
“(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;”
That sentence, in plain words
Money paid as a partial claim does not change how the guaranty is worked out.
What this is about
The government backs these home loans. A partial claim moves missed payments aside. This says that move does not change the backing.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “is amended”Who acts: CongressHow: statuteSec. 7307 in the PDF
What the document says
“in paragraph (2)(B)(ii), by striking "120 days" and inserting "180 days"”
The change is to section 3737(c) of title 38, United States Code.
What the document actually says
“in paragraph (2)(B)(ii), by striking "120 days" and inserting "180 days"”
That sentence, in plain words
The words for one length of time come out. A longer one goes in.
What this is about
The old rule gave four months. The new one gives six.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of Veterans AffairsHow: statuteSec. 7307 in the PDF
What the document says
“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 not restore housing loan entitlement under section 3702(b) of this title until such loss is repaid in full.”
The new subparagraph (A) of section 3737(e)(1) of title 38 replaces the earlier wording. A further subparagraph lets the Secretary charge administrative costs, fees and interest in a manner similar to section 5315 of that title.
What the document actually says
“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 not restore housing loan entitlement under section 3702(b) of this title until such loss is repaid in full.”
That sentence, in plain words
A borrower who does not pay back a partial claim owes the loss to the government. It is collected like any other debt owed.
What this is about
Home loan help from the government comes with an amount a veteran may use. It is not given back until the loss is paid in full.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
“(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.”
The rewritten paragraph (2) of section 3737(e) of title 38 sets the condition on which the sale clears the claim: the holder has to conduct the sale and share out any proceeds under the law of the state or place where the property sits.
What the document actually says
“(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.”
That sentence, in plain words
A sale held outside court clears the claim from the property. The holder must run the sale under local law.
What this is about
A partial claim leaves a debt tied to the house. When the house is sold this way, that tie is cut.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “can”Who acts: Secretary of Veterans AffairsHow: statuteSec. 7307 in the PDF
What the document says
“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.”
The rewritten subsection (h) of section 3737 of title 38 lets the program run on guidance while the rules are being written.
What the document actually says
“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.”
That sentence, in plain words
The Secretary may give written advice before the rules are made. That advice may add terms.
What this is about
Writing a rule takes a long time. Lenders need to know what to do now. Guidance fills that gap.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The four changes that alter what somebody must or may do: how a partial claim counts against the guaranty, the longer period in subsection (c), what a borrower owes on default, and the power to issue guidance before regulations.
The wording changes in subsections (b)(2) and (c) that adjust how the claim amount is described, and the small insertion about servicing the loan.
The section works by amending chapter 37 of title 38 of the United States Code. That law is not indexed here, so this file does not say who may receive a partial claim or how large one may be.
