119-HR2723

Bill is currently in: House
Path to Law
House Senate President

119th CONGRESS

1st Session

H. R. 2723

1. Short title
2. Basic provisions relating to loan guaranty and insurance

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:

(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.

(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.