The Secretary may cut the borrower's remaining entitlement
To amend title 38, United States Code, to authorize the Secretary of Veterans Affairs to take certain actions in the case of a default on a home loan guaranteed by the Secretary, and for other purposes, section 3, Sec. 3.
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The Secretary may cut the borrower's remaining entitlement
The document says “can”Who acts: Secretary of Veterans AffairsHow: statuteSec. 3 in the PDF
What the document says
“In the event of default by an individual on a loan for which the Secretary makes a partial claim made under this section, the Secretary may reduce the aggregate amount of guaranty or insurance housing loan entitlement available to the individual under this chapter.”
On such a default the Secretary of Veterans Affairs may lower the total housing loan entitlement the borrower still has under chapter 37 of title 38, United States Code.
What the document actually says
“In the event of default by an individual on a loan for which the Secretary makes a partial claim made under this section, the Secretary may reduce the aggregate amount of guaranty or insurance housing loan entitlement available to the individual under this chapter.”
That sentence, in plain words
If the person falls behind, the VA can cut what is left of their loan help.
What this is about
Each veteran has a set amount of loan help. Using it up leaves less for a future home.
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not the document's words. So is the plain English version, which is why it sits beside the
quotation rather than replacing it.
