Veterans Home Loan Refinance Opportunity Act of 2013 - Amends Internal Revenue Code provisions relating to tax-exempt veterans' mortgage bonds to permit: (1) proceeds from such bonds to refinance residences of veterans (currently, bond financing limited to new mortgages); (2) an annual inflation adjustment after 2013 to the amounts of veterans' mortgage bonds that states may issue; and (3) an increase from 1.125 % to 1.50% in the amount by which interest on veterans' mortgages may exceed the yield on a bond issue.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1885 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 1885
To amend the Internal Revenue Code of 1986 to allow eligible veterans
to use qualified veterans mortgage bonds to refinance home loans, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 8, 2013
Mrs. Davis of California (for herself, Mr. Lowenthal, Ms. Bonamici, Mr.
Takano, and Mr. Huffman) introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow eligible veterans
to use qualified veterans mortgage bonds to refinance home loans, 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 ``Veterans Home Loan Refinance
Opportunity Act of 2013''.
SEC. 2. MODIFICATION OF QUALIFIED VETERANS' MORTGAGE BONDS PROGRAM TO
ALLOW ELIGIBLE VETERANS TO REFINANCE CURRENT HOME LOANS.
(a) Elimination of Refinance Prohibition for Veterans' Bonds.--
Section 143(b) of the Internal Revenue Code of 1986 (relating to
qualified veterans' mortgage bond defined) is amended--
(1) in paragraph (1) by striking ``residences'' and
inserting ``residences or qualified refinancing loans'', and
(2) in paragraph (3) by striking ``(i)(1),''.
(b) Definition.--Section 143(l) of the Internal Revenue Code of
1986 (relating to additional requirements for qualified veterans'
mortgage bonds) is amended by adding at the end the following:
``(6) Qualified refinancing loan.--For purposes of this
subsection, the term `qualified refinancing loan' means a loan
that is used to refinance acquisition indebtedness (as defined
in subclauses (I) and (II) of section 163(h)(3)(B)(i)) for a
principal residence (within the meaning of section 121).''.
(c) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of enactment of this Act.
SEC. 3. INFLATION ADJUSTMENT OF STATE VETERANS LIMIT.
(a) In General.--Paragraph (3) of section 143(l) of the Internal
Revenue Code of 1986 (relating to volume limitation) is amended by
adding at the end the following new subparagraph:
``(D) Limitation adjustment based on inflation.--
``(i) In general.--In the case of any
calendar year after 2013, the limit determined
under subparagraph (B) for a State shall be
adjusted for such calendar year by multiplying
such limit by the inflation adjustment factor
for the calendar year.
``(ii) Computation of inflation adjustment
factor.--For purposes of clause (i)--
``(I) In general.--The Secretary
shall, not later than each October 1,
determine and publish in the Federal
Register the inflation adjustment
factor for the succeeding calendar year
in accordance with this clause.
``(II) Inflation adjustment
factor.--The term `inflation adjustment
factor' means, with respect to a
calendar year, a fraction the numerator
of which is the CMHPI for the second
quarter of the calendar year preceding
the calendar year for which the
adjustment is being made, and the
denominator of which is the CMHPI for
the second quarter of calendar year
2013.
``(III) CMHPI.--The term `CMHPI'
means the Conventional Mortgage Home
Price Index compiled by Federal Home
Loan Mortgage Corporation. The CMHPI
for any quarter shall be the CMHPI
first published for such quarter.
``(IV) Limitation.--No adjustment
shall be made under clause (i) for any
year in which the fraction in subclause
(II) is less than 1.''.
(b) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
SEC. 4. MODIFICATION OF MATERIALLY HIGHER YIELD FOR MORTGAGES MADE FROM
QUALIFIED VETERANS' MORTGAGE BONDS.
(a) Mortgage Yield Limitation Measured Under General Program
Obligation Provisions.--
(1) Effective mortgage interest limitation excepted.--
Paragraph (3) of section 143(b) of the Internal Revenue Code of
1986 (relating to qualified veterans' mortgage bond defined) is
amended by inserting ``(other than paragraph (2) thereof)''
after ``(g)''.
(2) Increase in yield limit.--Subparagraph (C) of section
143(g)(3) of the Internal Revenue Code of 1986 (relating to
requirements related to arbitrage) is amended by striking
``1.125 percentage points'' and inserting ``1.50 percentage
points''.
(3) Clerical amendment.--Section 143(g)(3) of such Code
(relating to requirements related to arbitrage) is amended in
the heading for subparagraph (C) by striking ``where issuer
does not use full 1.125 percentage points under paragraph (2)''
and inserting ``for certain unused amounts''.
(b) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E618-619)
Referred to the House Committee on Ways and Means.
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