Statement of Administration Policy: H.R. 2672 - Veterans' Housing Amendments

(House)
(Kaptur (D) Ohio and 8 others)

The administration opposes H.R. 2672, because it contains several unwise provisions that would have a negative impact on the veterans' housing program. Among the most objectionable provisions are:

— extension of the present one percent loan fee, which the administration has proposed raising to 2.5 percent to prevent the need for an additional appropriation of almost $400 million in fiscal year 1988 for the Veterans Administration (VA) home loan program.

— increasing the VA's maximum guaranty amount from $27,500 to $40,000, which increases the availability of subsidized mortgages to middle and upper income veterans who currently utilize private sources of mortgage credit.

— increasing the number of properties that VA acquires through foreclosure by excluding interest costs that are currently counted when deciding whether to acquire a property.