PAYMENT OF UNPAID BALANCES OF DEPARTMENT OF VETERANS AFFAIRS GUARANTEED LOANS.

SEC. 802. PAYMENT OF UNPAID BALANCES OF DEPARTMENT OF VETERANS AFFAIRS GUARANTEED LOANS.(a) In General.—Section 3732(a)(2) is amended—124 STAT. 2889(1) by striking “Before suit” and inserting “(A) Before suit”; and(2) by adding at the end the following new subparagraph:“(B) In the event that a housing loan guaranteed under this chapter is modified under the authority provided under section 1322(b) of title 11, the Secretary may pay the holder of the obligation the unpaid principal balance of the obligation due, plus accrued interest, as of the date of the filing of the petition under title 11, but only upon the assignment, transfer, and delivery to the Secretary (in a form and manner satisfactory to the Secretary) of all rights, interest, claims, evidence, and records with respect to the housing loan.”.(b) Effective Date.—The amendments made by subsection (a) shall apply with respect to a housing loan guaranteed after the date of the enactment of this Act.