[House Report 111-163]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 111-163
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WAIVER OF HOUSING LOAN FEE FOR CERTAIN VETERANS WITH SERVICE-CONNECTED
DISABILITIES CALLED TO ACTIVE SERVICE
_______
June 18, 2009.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Filner, from the Committee on Veterans' Affairs, submitted the
following
R E P O R T
[To accompany H.R. 2180]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 2180) to amend title 38, United States Code, to
waive housing loan fees for certain veterans with service-
connected disabilities called to active service, having
considered the same, report favorably thereon without amendment
and recommend that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Subcommittee Consideration....................................... 3
Committee Consideration.......................................... 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 3
Statement of General Performance Goals and Objectives............ 3
New Budget Authority, Entitlement Authority, and Tax Expenditures 4
Earmarks and Tax and Tariff Benefits............................. 4
Committee Cost Estimate.......................................... 4
Congressional Budget Office Estimate............................. 4
Federal Mandates Statement....................................... 5
Advisory Committee Statement..................................... 5
Constitutional Authority Statement............................... 5
Applicability to Legislative Branch.............................. 5
Section-by-Section Analysis of the Legislation................... 5
Changes in Existing Law Made by the Bill as Reported............. 5
Purpose and Summary
H.R. 2180 was introduced on April 29, 2009, by
Representative Harry Teague of New Mexico. H.R. 2180 would
waive housing loan fees for certain veterans with service-
connected disabilities called back to active service.
Background and Need for Legislation
The Department of Veterans Affairs (VA) Home Loan Program
was first enacted into law in 1944 with the enactment of the
Servicemen's Readjustment Act, also known as the G.I. Bill of
Rights. This law provided servicemembers returning from World
War II with housing assistance. Many of these veterans were
able to purchase their first home with the assistance of the
G.I. Bill of Rights.
The VA Home Loan Program provides veterans with VA-
guaranteed low or no down payment loans in order to promote
home ownership by veterans by encouraging lender participation.
The guaranty is also used to protect the lender against loss if
a veteran fails to repay or defaults on the loan.
The VA loan funding fee was first instituted in Public Law
97-253 (96 Stat. 763), the Omnibus Budget Reconciliation Act of
1982. Funding fees are used to offset the costs of paying
claims and other expenses incurred by the VA.
Except as waived, a housing loan funding fee is normally
required when purchasing or refinancing a home. The funding fee
percentage varies from 0.5 percent to 3.3 percent depending on
several variables, including whether the veteran is a first-
time homebuyer or if the veteran is putting a down payment or
is a member of the active or reserve components.
Public Law 106-419 (114 Stat. 1822) substantially re-wrote
the loan fee provision and authorized a waiver of the funding
fee for certain veterans receiving compensation or to a
qualified surviving spouse. Public Law 108-454 (118 Stat. 3598)
provided fee waivers for veterans receiving disability
compensation due to service-connected disability discharge and
rating. The fee waiver could be granted once the rating has
been determined and prior to receiving compensation.
A funding fee waiver is currently granted to veterans but
only on a case-by-case basis and the VA has the discretion to
determine who would receive this waiver. Current funding fee
waivers for VA home loans are granted to veterans who are
receiving disability compensation for service-related medical
issues, who are entitled to get compensation if they are not
receiving retirement pay, and surviving spouses of those who
died in the service or from service-related disabilities.
The Committee believes that the original drafters of the
funding fee waivers did not foresee that a disabled veteran
would be called to return to active duty. Our Country's current
conflicts have placed a tremendous burden on our men and women
in uniform with some veterans of the reserve components with
service-connected disabilities being called back to military
service. The Committee is aware of cases where injured veterans
have not been provided equitable funding fee waivers because
they have been called back to active duty. Section 3729(c) of
title 38, United States Code, limits waiver of the funding fee
for those with service-connected disabilities or those
receiving retirement pay, thus preventing those who are serving
on active duty from receiving fee waivers.
Hearings
On May 21, 2009, the Subcommittee on Economic Opportunity
conducted a legislative hearing on various bills introduced
during the 111th Congress, including H.R. 2180. The following
witnesses testified: The Honorable Mike Coffman of Colorado;
Richard Daley, Associate Legislation Director, Paralyzed
Veterans of America; John L. Wilson, Associate National
Legislative Director, Disabled American Veterans; Mark Seavey,
Assistant Director, National Legislative Commission, The
American Legion; Raymond C. Kelley, National Legislative
Director, AMVETS; Cpl. Wade J. Spann, USMC, Wounded Warrior
Project; Keith M. Wilson, Director, Education Service, Veterans
Benefits Administration, U.S. Department of Veterans Affairs,
accompanied by John Brizzi, Deputy Assistant General Counsel,
U.S. Department of Veterans Affairs; and, John C. McWilliam,
Deputy Assistant Secretary, Veterans' Employment and Training
Service, U.S. Department of Labor. Submitting a statement for
the record included: The Honorable Bob Filner of California.
Subcommittee Consideration
On June 4, 2009, the Subcommittee on Economic Opportunity
met in open markup session and ordered H.R. 2180 favorably
forwarded to the full Committee by voice vote.
Committee Consideration
On June 10, 2009, the full Committee met in an open markup
session, a quorum being present, and ordered H.R. 2180 reported
favorably to the House of Representatives by voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report the legislation and amendments thereto.
There were no record votes taken on amendments or in connection
with ordering H.R. 2180 reported to the House. A motion by Mr.
Stearns of Florida to order H.R. 2180 reported favorably to the
House of Representatives was agreed to by voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Earmarks and Tax and Tariff Benefits
H.R. 2180 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(d), 9(e), or 9(f) of rule XXI of the Rules of the
House of Representatives.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
2180 prepared by the Director of the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974.
Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 2180 provided by the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 16, 2009.
Hon. Bob Filner,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2180, a bill to
waive housing loan fees for certain veterans with service-
connected disabilities called to active service.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is David Newman.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 2180--A bill to amend title 38, United States Code, to waive
housing loan fees for certain veterans with service-connected
disabilities called to active service
H.R. 2180 would direct the Department of Veterans Affairs
(VA) to waive its mortgage funding fee for certain reservists
who have been called to active duty. VA collects a fee from
most veterans when it guarantees their mortgage loans, but
waives the fee for veterans who are receiving disability
compensation. Some reservists receive disability compensation,
but must forfeit such payments while they are receiving pay for
active military service. As a result, they lose eligibility for
the fee waivers for the period of their active duty service.
H.R. 2180 would allow continued eligibility for fee waivers
for such activated reservists. Under the bill, CBO estimates
that fewer than 10 additional veterans a year would receive a
fee waiver, which would result in forgone receipts of less than
$50,000 per year. Thus, CBO estimates that enacting the bill
would have an insignificant effect on direct spending and no
effect on revenues. In addition, CBO expects that implementing
H.R. 2180 would not affect discretionary spending.
H.R. 2180 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
The CBO staff contact for this estimate is David Newman.
The estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 2180 prepared by the Director of the
Congressional Budget Office pursuant to section 423 of the
Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
2180.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for H.R. 2180 is provided by Article
I, section 8 of the Constitution of the United States.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Waiver of housing loan fee for certain veterans with
service-connected disabilities called to active service.
This section provides that a fee may not be collected from
a qualified service-disabled veteran who is called back to
active service.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART III--READJUSTMENT AND RELATED BENEFITS
* * * * * * *
CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
* * * * * * *
SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
* * * * * * *
Sec. 3729. Loan fee
(a) * * *
* * * * * * *
(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) or from a surviving
spouse of any veteran (including a person who died in the
active military, naval, or air service) who died from a
service-connected disability.
* * * * * * *