H.R. 2723

119 HR 2723 IH: Veteran Affairs Home Loan Guaranty Resiliency And Concurrency Enhancement Act of 2025
 U.S. House of Representatives
 2025-04-08
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 I  119th CONGRESS  1st Session  H. R. 2723  IN THE HOUSE OF REPRESENTATIVES   April 8, 2025   Mr. Kennedy of New York  (for himself and  Ms. Brownley ) introduced the following bill; which was referred to the  Committee on Veterans' Affairs    A BILL
To amend title 38, United States Code, to increase the maximum guaranty amount for loans made to certain veterans under the laws administered by the Secretary of Veterans Affairs, and for other purposes.
1.
Short title
This Act may be cited as the   Veteran Affairs Home Loan Guaranty Resiliency And Concurrency Enhancement Act of 2025   or the   VA Home Loan GRACE Act of 2025  .
2.
Basic provisions relating to loan guaranty and insurance
(a)
In general
Section 3703(a)(1) of title 38, United States Code, is amended—
(1)
in subparagraph (A)—
(A)
by striking  Any  and inserting  Except as provided in subparagraphs (C) and (D), any ; and
(B)
by striking  the lesser of  and all that follows through the period at the end of clause (ii) and inserting  the lesser of the maximum guaranty or the maximum amount of guaranty entitlement available to the veteran, as specified in the table in subparagraph (B). ;
(2)
by striking subparagraph (B) and inserting the following new subparagraph (B):
(B)
The table referred to in subparagraph (A) is as follows:
  Type of Loan    Maximum Guaranty    Maximum Amount of Guaranty Entitlement  (i)(I) Any loan of not more than $45,000 to a veteran who is not a covered veteran  50 percent of the loan  $36,000     (i)(II) Any loan of not more than $45,000 to a covered veteran (closed before April 7, 2031)  50 percent of the loan  50 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored     (i)(III) Any loan of not more than $45,000 to a covered veteran (closed on or after April 7, 2031)  50 percent of the loan  25 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored     (ii)(I) Any loan of more than $45,000, but not more than $56,250, to a veteran who is not a covered veteran  $22,500  $36,000     (ii)(II) Any loan of more than $45,000, but not more than $56,250, to a covered veteran (closed before April 7, 2031)  $22,500  50 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored     (ii)(III) Any loan of more than $45,000, but not more than $56,250, to a covered veteran (closed on or after April 7, 2031)  $22,500  25 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored     (iii)(I) Except as provided in clause (iv)(I), in the case of any loan of more than $56,250, to a veteran who is not a covered veteran  the lesser of $36,000 or 40 percent of the loan  $36,000     (iii)(II) Except as provided in clause (iv)(II), in the case of any loan of more than $56,250, to a covered veteran (closed before April 7, 2031)  the lesser of $36,000 or 40 percent of the loan  50 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored     (iii)(III) Except as provided in clause (iv)(III), in the case of any loan of more than $56,250, to a covered veteran (closed on or after April 7, 2031)  the lesser of $36,000 or 40 percent of the loan  25 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored     (iv)(I) Any loan of more than $144,000 for a purpose specified in clause (1), (2), (3), (5), (6), or (8) of section 3710(a) of this title, to a veteran who is not a covered veteran  25 percent of the loan  25 percent of the loan     (iv)(II) Any loan of more than $144,000 for a purpose specified in clause (1), (2), (3), (5), (6), or (8) of section 3710(a) of this title, to a covered veteran (closed before April 7, 2031)  25 percent of the loan  50 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored     (iv)(III) Any loan of more than $144,000 for a purpose specified in clause (1), (2), (3), (5), (6), or (8) of section 3710(a) of this title, to a covered veteran (closed on or after April 7, 2031)  25 percent of the loan  25 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored
 ;
(3)
in subparagraph (C)—
(A)
by redesignating clause (iii) as subparagraph (E); and
(B)
by striking subparagraph (C) and inserting the following:
(C)
Except as provided in subparagraph (D), when two or more veterans use guaranty entitlement on a single loan, the loan is automatically guaranteed by the United States in an amount not to exceed the lesser of—
(i)
the maximum guaranty as specified in the table in subparagraph (B); or
(ii)
the sum of the maximum amount of guaranty entitlement available to each veteran, as calculated pursuant to the table in subparagraph (B).
 ;
(4)
by inserting after subparagraph (C) the following new subparagraph (D):
(D)
(i)
Except as provided in clause (ii), if two or more veterans use guaranty entitlement on a single loan described in subparagraph (B)(iv), the loan is automatically guaranteed by the United States in an amount not to exceed the lesser of the following:
(I)
In the case of a loan for which—
(aa)
at least one veteran is a covered veteran, 25 percent of the Freddie Mac conforming loan limit; or
(bb)
no veteran is a covered veteran, 25 percent of the loan.
(II)
The sum of the maximum amount of guaranty entitlement available to each veteran, as calculated pursuant to the table in subparagraph (B).
(ii)
Clause (i) shall not apply to a loan made to two veterans who are married to each other if there are no other obligors on the loan.
 ; and
(5)
in subparagraph (E), as redesignated by paragraph (3)(A)—
(A)
by striking  subparagraph  and inserting  paragraph ; and
(B)
by redesignating subclauses (I) and (II) as clauses (i) and (ii), respectively.
(b)
Penalties for false certification
Section 3704(c) of such title is amended by adding at the end the following new paragraph:
(3)
Any veteran who knowingly and materially makes a false certification under paragraph (1) or (2) of this subsection shall be liable to the United States Government for a civil penalty in an amount not to exceed $23,607. A penalty under this paragraph may be in addition to any other remedy available to the Secretary. All determinations necessary to carry out this paragraph shall be made by the Secretary.
 .
(c)
Loan fees
The loan fee table in section 3729(b)(2) of such title is amended by striking  April 7, 2023  each place it appears and inserting  April 7, 2031 .
(d)
Effective date
The amendments made by this Act shall take effect on the date that is 180 days after the date of the enactment of this Act.