Veterans' Home Loan Program Improvements and Property Rehabilitation Act of 1987 - Amends Federal veterans' benefits provisions to extend through FY 1989 the applicability of the veterans' home loan origination fee (a fee paid by veterans for housing loans made to them by the Administrator of Veterans Affairs). Waives from liability for such loan fee the survivor of any veteran who died from a service-connected disability, including death while in the active military service.
Revises the maximum (and minimum) amount of a home loan guaranteed by the United States to a veteran to make such maximum: (1) 50 percent of the total loan in the case of any loan of not more than $45,000; and (2) 40 percent of the loan or $36,000, whichever is less, in the case of a loan of more than $45,000, but not less than $22,500. Reduces all such loan amounts by any entitlement already used by such veteran and not repaid.
Revises the amount of a guaranteed loan for the purchase of manufactured homes to a maximum of 40 percent of the loan (currently 50 percent) or $20,000, whichever is less, reduced by any entitlement received and not repaid by the veteran involved. Prohibits the amount of any loan guaranteed under such provision from exceeding 95 percent of the purchase price of the property securing the loan.
Increases from $27,500 to $36,000 the amount of a direct loan permitted to a veteran for the purchase or construction of a home.
Directs the Administrator, upon notice of foreclosure on a veteran's guaranteed housing loan, to contact the veteran with information concerning: (1) alternatives to foreclosure; and (2) the veteran's and the VA's liability with respect to the loan in event of foreclosure. Waives such requirement if the lender has a record of consistently supplying veterans with such information. Revises provisions relating to the total indebtedness incurred by a veteran as the result of foreclosure proceedings, and the determination of the foreclosure date when delays in such accounting date are caused by either the holder of the loan or the VA (and not by the veteran). Adds to the total liability of the United States (in a defaulted loan procedure) any interest which accrues on the outstanding loan which comes about as the result of a delay caused by the VA in the liquidation sale of the property securing the loan, or by the voluntary commencement of bankruptcy proceedings.
Authorizes the Administrator, during FY 1988 through 1990, to provide VA financing of not more than 65 percent nor less than 50 percent of properties sold by the VA after acquiring them in guaranteed loan defaults. (Currently, such percentages are 75 and 60, respectively.) Limits the amount of a loan made by the Administrator to finance the purchase of such real property to 95 percent of its purchase price. Waives such 95 percent cap in certain instances. Authorizes the Administrator to include, as part of such a loan, an amount to be used only to rehabilitate such property. Directs the Administrator, by March 1, 1990, to transmit to the Congress a report on the implementation of such loan program.
Repeals the requirement that a veteran refinancing a VA guaranteed home or manufactured housing loan must still occupy the property securing the loan. Provides that, for VA housing loan purposes, a person on active duty in the armed forces will be deemed to occupy a property if his or her spouse occupies such property. Limits a loan to refinance an existing mortgage loan to 90 percent of the appraised value of the dwelling or farm residence which will secure the loan.
Provides that, in any case in which a veteran is in an active-duty status and is unable to occupy a property because of such status, any occupancy requirements under the veterans' home loan guaranty program shall be considered to be satisfied if the veteran's spouse occupies such property as the spouse's home and the spouse makes any required certifications.
Authorizes the Administrator to enter into agreements to sell properties acquired by the VA under home loan default for use as shelters for homeless veterans and their families. Limits the sale of such properties to certain approved organizations or to political subdivisions. Authorizes the Administrator to enter into such sales agreements only if: (1) the Administrator determines that such sale will not adversely affect the VA's goals or programs or the solvency of the Loan Guaranty Revolving Fund; (2) the entity which purchases the property agrees to utilize it solely as a shelter primarily for homeless veterans and their families, to comply with all zoning requirements, and to make no incompatible use of the purchased property; and (3) the Administrator determines that there is little likelihood of the property's being sold for a price sufficient to reduce the liability of the VA or of the veteran who defaulted on the guaranteed loan.
Authorizes the Administrator to sell properties acquired by the VA under the home loan program to persons or entities who agree to employ veterans in a job training program under the Veterans' Job Training Act (VJTA). Requires the sale amount to be not less than 75 percent of the fair market value of such real property and improvements. Requires the purchaser to: (1) agree to use veterans in a VJTA program to rehabilitate the properties; and (2) provide veterans with a preference in the resale of such properties after such rehabilitation. Reduces the liability of a veteran whose former home is sold under this authority by an amount equal to the reduction in the sale price of the property below the fair market value of the property. Directs the Administrator, by March 1, 1990, to report to the Congress on this program.
Provides that, if a veteran disposes of residential property securing a housing loan guaranteed by the VA, and the veteran notifies the holder of the loan in advance before such disposal, the veteran shall be relieved of all further liability to the Administrator on account of such loan (including liability for any loss resulting from the default of any subsequent purchaser) if: (1) the loan is current; (2) the purchaser agrees to abide by the original loan agreement; and (3) the purchaser qualifies from a credit standpoint in an amount equal to the unpaid balance of the loan. Requires the holder, if the loan is not current or the purchaser does not meet credit requirements, to notify the veteran and the Administrator, and to notify the veteran also that he or she may appeal such determination to the Administrator. Directs the Administrator, upon request of the veteran, to review such determination and make his or her own determination on the matter.
Requires the holder to approve such a loan assumption if the Administrator determines the loan is current and that the new purchaser is qualified. Authorizes the Administrator to direct the holder to approve the assumption of a loan, even when the purchaser does not meet the necessary requirements, if the Administrator determines: (1) that the transferor is unable to make loan payments and has made reasonable efforts to find a buyer who meets all the requirements; (2) that the transferor has requested, within a specified period of time, that the Administrator approve the loan assumption; and (3) that the transferor has agreed to become secondarily liable on the loan upon its assumption by the purchaser.
Authorizes the holder to make an immediate demand of all loan principal if the loan assumption is not approved or a timely appeal is not made of such decision by the transferor. Authorizes the holder also to make such a demand if the veteran disposes of the property without notifying the holder of such transfer. Requires any loan holder who has knowledge of a property transfer by a veteran to notify the Administrator of such transfer (or impending transfer). Holds the holder liable for any damage resulting from his or her failure to so inform the Administrator. Requires the Administrator to ensure that each contract entered into with a veteran under a guaranteed-loan arrangement contains provisions implementing such requirements. Requires the Administrator to establish a reasonable charge for the processing of a creditworthiness determination or loan assumption application.
Requires any guaranteed VA housing loan to include a provision which states that the loan is immediately due and payable upon transfer of the property securing such loan to a transferee whose creditworthiness is not established as required. Authorizes the collection of a loan fee from the person assuming the loan.
Requires appraisers in the VA home loan guaranty program to: (1) successfully complete a written examination; (2) submit a sample appraisal; (3) certify to an appropriate number of years of experience as an appraiser; and (4) submit recommendations from other appraisers.
Requires an appraiser approved by the Administrator to forward an appraisal report to the Administrator for review, at which time the Administrator shall determine the reasonable value of the property and notify the veteran of such determination. Authorizes the Administrator to allow certain approved lenders to make such appraisals on their own. Directs the appraiser in such a case to forward the appraisal report directly to the lender for review, and the lender, as soon as possible thereafter, to furnish a copy of the appraisal to the veteran who is applying for the loan and the Administrator. Directs the Administrator to carry out an appraisal review monitoring system to monitor the effectiveness of the determination of reasonable value made by such approved lenders.
Exempts the veterans' guaranteed home loan program from sequestration procedures under the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act). Repeals a requirement that the President make certain monthly reports to specified congressional committees following cancellation of such loan guarantee commitments in certain circumstances.
Revises provisions concerning the determination of minimum residual income for purposes of a veteran's eligibility for a VA-guaranteed home loan.
Directs the Administrator, in order to effect the most expeditious sale, at the best possible price, of property acquired as the result of a guaranteed loan default, to list such property with real estate brokers.