Veterans' Home Loan Mortgage Indemnity Act of 1989

openUnited States· United States Congress· EN

Introduced

15 March 1989

Last action

20 November 1989 · Committee

Status

See H.R.901.

Summary

Veterans' Home Loan Mortgage Indemnity Act of 1989 - Establishes a Veterans' Mortgage Indemnity Fund. Provides that the Indemnity Fund shall be available to the Secretary of Veterans Affairs for all operations with respect to guaranteed or insured Department of Veterans Affairs housing loans for which fees are collected, other than loans for property which has been disposed of by veterans to purchasers who will assume liability for such loan. Provides that the following sums shall be credited to the Indemnity Fund: (1) all fees collected from such housing loans, other than loans for property which has been disposed of by the veteran to a purchaser who will assume liability for such loan; (2) .25 percent of the original amount of all loans for which a fee is collected for the first three fiscal years beginning with the fiscal year in which such fee is collected; (3) all collections of principal and interest and the proceeds from property held or disposed of with respect to such loans; and (4) all income from investments of the Indemnity Fund that are required to be made by the Secretary of the Treasury in obligations of the United States. Increases the fee for a Department housing loan to 1.25 percent of the total loan amount. Provides that the following fees shall be collected: (1) one percent of the total loan amount with respect to housing loans obtained which are in default; and (2) .75 percent of the total loan amount with respect to loans for purchase or construction for which a down payment of at least five percent of the total purchase price or construction costs has been made. Provides for the waiver of such fees for veterans who are receiving compensation and whose disability is rated at least 30 percent. Provides that the provision prohibiting fee collection with respect to all loans closed after September 30, 1989, shall apply after such date only to loans which are in default or loans for property which has been disposed of to another purchaser. Provides that any veteran who pays a fee for such loans, other than loans which are in default or loans for property which has been disposed of, or who is exempt from paying such fee, shall have no liability to the Secretary with respect to such loan for any loss resulting from a default of the veteran. Revises provisions regarding the Loan Guaranty Revolving Fund to: (1) provide that it shall be available to the Secretary for all housing operations except those carried out by the Indemnity Fund; (2) limit the deposit of housing loan fees in such Fund, other than fees for loans for property which has been disposed of, to fees collected before the effective date of this Act; and (3) limit the deposit of principal and interest and the proceeds from property held or disposed of with respect to housing loans to loans guaranteed before the effective date of this Act. Revises a provision authorizing the Secretary to sell notes evidencing loans which are in default to permit such sale only if the amount received at the time of the sale is at least 90 percent of the unpaid balance of such loan. Revises a provision regarding basic entitlement to housing loans to authorize the Secretary, in computing the amount of guaranty entitlement available to a veteran, to exclude the amount of entitlement used for any loan which has been repaid in full. Allows only the presence of fraud (currently, fraud, misrepresentation, material fault, or lack of good faith) as a bar to the waiver of recovery of payments, overpayments, or benefits made by the Department when the Secretary determines that recovery would be against equity and good conscience. Prohibits the Secretary, in waiving indebtedness following the default of a veteran on a housing loan, to base such waiver on the balancing of fault or on whether such veteran may be able to repay the indebtedness.

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Timeline

15 March 1989
Introduced
Introduced in House
Source: IntroReferral
15 March 1989
Introduced
Referred to the House Committee on Veterans' Affairs.
Source: IntroReferral
15 March 1989
Introduced
Introduced in House
Source: IntroReferral
20 March 1989
Committee
Executive Comment Requested from VA.
Source: Committee
18 April 1989
Referred
Referred to the Subcommittee on Housing and Memorial Affairs.
Source: Committee
18 April 1989
Committee
Subcommittee Hearings Held.
Source: Committee
11 May 1989
Committee
Forwarded by Subcommittee to Full Committee (Amended).
Source: Committee
11 May 1989
Committee
Subcommittee Consideration and Mark-up Session Held.
Source: Committee
16 May 1989
Committee
Executive Comment Received from VA.
Source: Committee
17 May 1989
Committee
Committee Consideration and Mark-up Session Held.
Source: Committee
17 May 1989
Reported
Ordered to be Reported (Amended).
Source: Committee
1 June 1989
Calendars
Placed on the Union Calendar, Calendar No. 43.
Source: Calendars
1 June 1989
Reported
Reported (Amended) by the Committee on Veterans' Affairs. H. Rept. 101-73.
Source: Committee
1 June 1989
Reported
Reported (Amended) by the Committee on Veterans' Affairs. H. Rept. 101-73.
Source: Committee
6 June 1989
Passed
Motion to reconsider laid on the table Agreed to without objection.
Source: Floor
6 June 1989
Passed
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
Source: Floor
6 June 1989
Passed
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
Source: Floor
6 June 1989
Floor
DEBATE - The House proceeded with forty minutes of debate.
Source: Floor
6 June 1989
Floor
Considered under suspension of the rules.
Source: Floor
6 June 1989
Calendars
The chair announced that a second on the motion to suspend the rules is not required.
Source: Calendars
6 June 1989
Floor
Mr. Montgomery moved to suspend the rules and pass the bill, as amended.
Source: Floor
7 June 1989
Introduced
Received in the Senate and read twice and referred to the Committee on Veterans.
Source: IntroReferral
22 June 1989
Committee
Committee on Veterans. Hearings held.
Source: Committee
31 July 1989
Committee
Committee on Veterans requested executive comment from the Department of Veterans Affairs.
Source: Committee
20 November 1989
Committee
See H.R.901.
Source: Committee

Votes

No vote records are attached yet.

Versions

Engrossed in House · undated · Official file
Introduced in House · undated · Official file
Referred in Senate · undated · Official file
Reported in House · undated · Official file

Documents

7 official files

Reported in House (text)

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Reported in House (text)
Reported in House · EN
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Referred in Senate (text)
Referred in Senate · EN
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Introduced in House (text)
Introduced in House · EN
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Engrossed in House (text)
Engrossed in House · EN
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Passed House amended
summary · EN · 6 June 1989
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Reported to House with amendment(s)
summary · EN · 1 June 1989
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Introduced in House
summary · EN · 15 March 1989
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Related records

related to → Veterans' Benefits Amendments of 1989

Sources

PoliticalRepo is an index and interpretation layer, not the authoritative legal source.

Official source: https://www.congress.gov/bill/101st-congress/house-bill/1415
Open data entity: https://api.congress.gov/v3/bill/101/hr/1415
us · 101-hr-1415 · source updated 14 January 2025