Loan Guaranty: Implementation of Public Law 107-103

This document affirms, with one modification, an amendment to the Department of Veterans Affairs (VA) loan guaranty regulations implementing sections 401 through 404 of the Veterans Education and Benefits Expansion Act of 2001. The amendment incorporates into the regulations the following statutory changes: an increase in the maximum amount of loan guaranty entitlement from $50,750 to $60,000, a liberalization of the requirements regarding Memoranda of Understanding (MOU) between VA and Native American Tribes in order for their members to qualify for direct housing loans to Native American veterans, a revision of the requirement that loan instruments used in connection with VA guaranteed loans contain a statement that such loans are not assumable without prior VA approval, and an increase in the maximum specially adapted housing grant and in the special housing adaptations grant. Because these special housing grant amounts have been increased by subsequent legislation, this final rule reflects the current statutory limits of $50,000 and $10,000, respectively.