HR 7816 — Clear Communication for Veterans Claims Act

changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 TITLE 38, UNITED STATES CODE

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PART III--READJUSTMENT AND RELATED BENEFITS

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CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS

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SUBCHAPTER III--ADMINISTRATIVE PROVISIONS

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Sec. 3729. Loan fee

 (a) Requirement of Fee.--(1) Except as provided in subsection 
(c), a fee shall be collected from each person obtaining a 
housing loan guaranteed, insured, or made under this chapter, 
and each person assuming a loan to which section 3714 of this 
title applies. No such loan may be guaranteed, insured, made, 
or assumed until the fee payable under this section has been 
remitted to the Secretary.
 (2) The fee may be included in the loan and paid from the 
proceeds thereof.
 (b) Determination of Fee.--(1) The amount of the fee shall be 
determined from the loan fee table in paragraph (2). The fee is 
expressed as a percentage of the total amount of the loan 
guaranteed, insured, or made, or, in the case of a loan 
assumption, the unpaid principal balance of the loan on the 
date of the transfer of the property.
 (2) The loan fee table referred to in paragraph (1) is as 
follows:

 
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 Type of loan Active duty veteran Reservist Other obligor
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(A)(i) Initial loan described in 2.15 2.40 NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other initial loan described in
 section 3710(a) other than with 5-
 down or 10-down (closed on or after
 October 1, 2004, and before January
 1, 2020).
(A)(ii) Initial loan described in 2.30 2.30 NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other initial loan described in
 section 3710(a) other than with 5-
 down or 10-down (closed on or after
 January 1, 2020, and before April 7,
 2023).
(A)(iii) Initial loan described in 2.15 2.15 NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other initial loan described in
 section 3710(a) other than with 5-
 down or 10-down (closed on or after
 April 7, 2023, and before [November
 15, 2031] November 29, 2031 ).
(A)(iv) Initial loan described in 1.40 1.40 NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other initial loan described in
 section 3710(a) other than with 5-
 down or 10-down (closed on or after
 [November 15, 2031] November 29,
 2031 ).
(B)(i) Subsequent loan described in 3.30 3.30 NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other subsequent loan described
 in section 3710(a) (closed on or
 after October 1, 2004, and before
 January 1, 2020).
(B)(ii) Subsequent loan described in 3.60 3.60 NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other subsequent loan described
 in section 3710(a) (closed on or
 after January 1, 2020, and before
 April 7, 2023).
(B)(iii) Subsequent loan described in 3.30 3.30 NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other subsequent loan described
 in section 3710(a) (closed on or
 after April 7, 2023, and before
 [November 15, 2031] November 29,
 2031 ).
(B)(iv) Subsequent loan described in 1.25 1.25 NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other subsequent loan described
 in section 3710(a) (closed on or
 after [November 15, 2031] November
 29, 2031 ).
(C)(i) Loan described in section 1.50 1.75 NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed before
 January 1, 2020).
(C)(ii) Loan described in section 1.65 1.65 NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed on or
 after January 1, 2020, and before
 April 7, 2023).
(C)(iii) Loan described in section 1.50 1.50 NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed on or
 after April 7, 2023, and before
 [November 15, 2031] November 29,
 2031 ).
(C)(iv) Loan described in section 0.75 0.75 NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed on or
 after [November 15, 2031] November
 29, 2031 ).
(D)(i) Loan described in section 1.25 1.50 NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed before
 January 1, 2020).
(D)(ii) Loan described in section 1.40 1.40 NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed on or
 after January 1, 2020, and before
 April 7, 2023).
(D)(iii) Loan described in section 1.25 1.25 NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed on or
 after April 7, 2023, and before
 [November 15, 2031] November 29,
 2031 ).
(D)(iv) Loan described in section 0.50 0.50 NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed on or
 after [November 15, 2031] November
 29, 2031 ).
(E) Interest rate reduction 0.50 0.50 NA
 refinancing loan.
(F) Direct loan under section 3711... 1.00 1.00 NA
(G) Manufactured home loan under 1.00 1.00 NA
 section 3712 (other than an interest
 rate reduction refinancing loan).
(H) Loan to Native American veteran 1.25 1.25 NA
 under section 3762 (other than an
 interest rate reduction refinancing
 loan).
(I) Loan assumption under section 0.50 0.50 0.50
 3714.
(J) Loan under section 3733(a)....... 2.25 2.25 2.25.
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 (3) Any reference to a section in the ``Type of loan'' column 
in the loan fee table in paragraph (2) refers to a section of 
this title.
 (4) For the purposes of paragraph (2):
 (A) The term ``active duty veteran'' means any 
 veteran eligible for the benefits of this chapter other 
 than a Reservist.
 (B) The term ``Reservist'' means a veteran described 
 in section 3701(b)(5)(A) of this title who is eligible 
 under section 3702(a)(2)(E) of this title.
 (C) The term ``other obligor'' means a person who is 
 not a veteran, as defined in section 101 of this title 
 or other provision of this chapter.
 (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 of the dwelling, as determined by 
 the Secretary.
 (E) The term ``subsequent loan'' means a loan to a 
 veteran, other than an interest rate reduction 
 refinancing loan, guaranteed under section 3710 or made 
 under section 3711 of this title that is not an initial 
 loan.
 (F) The term ``interest rate reduction refinancing 
 loan'' means a loan described in section 3710(a)(8), 
 3710(a)(9)(B)(i), 3710(a)(11), 3712(a)(1)(F), or 
 3762(h) of this title.
 (G) The term ``0-down'' means a downpayment, if any, 
 of less than 5 percent of the total purchase price or 
 construction cost of the dwelling.
 (H) The term ``5-down'' means a downpayment of at 
 least 5 percent or more, but less than 10 percent, of 
 the total purchase price or construction cost of the 
 dwelling.
 (I) The term ``10-down'' means a downpayment of 10 
 percent or more of the total purchase price or 
 construction cost of the dwelling.
 (c) Waiver of Fee.--(1) A fee may not be collected under this 
section from a veteran who is receiving compensation (or who, 
but for the receipt of retirement pay or active service pay, 
would be entitled to receive compensation), from a surviving 
spouse of any veteran (including a person who died in the 
active military, naval, air, or space service) who died from a 
service-connected disability, or from a member of the Armed 
Forces who is serving on active duty and who provides, on or 
before the date of loan closing, evidence of having been 
awarded the Purple Heart.
 (2)(A) A veteran described in subparagraph (B) shall be 
treated as receiving compensation for purposes of this 
subsection as of the date of the rating described in such 
subparagraph without regard to whether an effective date of the 
award of compensation is established as of that date.
 (B) A veteran described in this subparagraph is a veteran who 
is rated eligible to receive compensation--
 (i) as the result of a pre-discharge disability 
 examination and rating; or
 (ii) based on a pre-discharge review of existing 
 medical evidence (including service medical and 
 treatment records) that results in the issuance of a 
 memorandum rating.

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