119-hr2723

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2723 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2723

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.

_______________________________________________________________________

 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.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 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''.

SEC. 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:

----------------------------------------------------------------------------------------------------------------
 Maximum
 ``Type of Loan Guaranty Maximum Amount of Guaranty Entitlement
----------------------------------------------------------------------------------------------------------------
            (i) 
            (I) Any loan of not more than $45,000 to a 50 percent $36,000
 veteran who is not a covered veteran of the loan
            (i) 
            (II) Any loan of not more than $45,000 to a 50 percent 50 percent of the Freddie Mac conforming loan
 covered veteran (closed before April 7, 2031) of the loan limit, reduced by the amount of entitlement not
 restored
            (i) 
            (III) Any loan of not more than $45,000 to a 50 percent 25 percent of the Freddie Mac conforming loan
 covered veteran (closed on or after April 7, of the loan limit, reduced by the amount of entitlement not
 2031) restored
            (ii) 
            (I) Any loan of more than $45,000, but not $22,500 $36,000
 more than $56,250, to a veteran who is not a
 covered veteran
            (ii) 
            (II) Any loan of more than $45,000, but not $22,500 50 percent of the Freddie Mac conforming loan
 more than $56,250, to a covered veteran (closed limit, reduced by the amount of entitlement not
 before April 7, 2031) restored
            (ii) 
            (III) Any loan of more than $45,000, but not $22,500 25 percent of the Freddie Mac conforming loan
 more than $56,250, to a covered veteran (closed limit, reduced by the amount of entitlement not
 on or after April 7, 2031) restored
            (iii) 
            (I) Except as provided in clause
            (iv) 
            (I) , in the lesser $36,000
 the case of any loan of more than $56,250, to a of $36,000
 veteran who is not a covered veteran or 40
 percent of
 the loan
            (iii) 
            (II) Except as provided in clause
            (iv) 
            (II) , the lesser 50 percent of the Freddie Mac conforming loan
 in the case of any loan of more than $56,250, to of $36,000 limit, reduced by the amount of entitlement not
 a covered veteran (closed before April 7, 2031) or 40 restored
 percent of
 the loan
            (iii) 
            (III) Except as provided in clause the lesser 25 percent of the Freddie Mac conforming loan
            (iv) 
            (III) , in the case of any loan of more than of $36,000 limit, reduced by the amount of entitlement not
 $56,250, to a covered veteran (closed on or or 40 restored
 after April 7, 2031) percent of
 the loan
            (iv) 
            (I) Any loan of more than $144,000 for a 25 percent 25 percent of the loan
 purpose specified in clause

    (1) ,

    (2) ,

    (3) ,

    (5) , of the loan

    (6) , or

    (8) of 

section 3710

    (a) of this title, to
 a veteran who is not a covered veteran
            (iv) 
            (II) Any loan of more than $144,000 for a 25 percent 50 percent of the Freddie Mac conforming loan
 purpose specified in clause

    (1) ,

    (2) ,

    (3) ,

    (5) , of the loan limit, reduced by the amount of entitlement not

    (6) , or

    (8) of 

section 3710

    (a) of this title, to restored
 a covered veteran (closed before April 7, 2031)
            (iv) 
            (III) Any loan of more than $144,000 for a 25 percent 25 percent of the Freddie Mac conforming loan
 purpose specified in clause

    (1) ,

    (2) ,

    (3) ,

    (5) , of the loan limit, reduced by the amount of entitlement not

    (6) , or

    (8) of 

section 3710

    (a) of this title, to restored'';
 a covered veteran (closed on or after April 7,
 2031)
----------------------------------------------------------------------------------------------------------------

    (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.
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