Statement of Administration Policy: H.R. 4130 - VA Home Loan Guarantee Program Amendment

(Revision)
(House)
(Shelby (D) Alabama and 3 others)

The Administration does not object to House passage of H.R. 4130.

However, the Administration urges Congress to quickly adopt the President's FY '87 Budget proposal which would increase the funding fee on VA guaranteed mortgages from 1% to 2% of the mortgage principal effective in fiscal year 1987, and rising gradually to 3.8% in fiscal year 1990.

This proposal, which was adopted by the Senate in the FY '86 Senate Budget Resolution, would decrease the deficit by $131.8 million in FY'87, $146.2 in FY '88, $227.3 in FY '89, $313.9 in FY '90 and $368.3 in FY '91, according to the latest figures in the President's 1987 Budget.