[VA Proposal to Curtail Activity in Home Loan Guarantee Program]

B-221498.25: Published: Jun 3, 1986. Publicly Released: Apr 4, 1990.

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In response to a congressional request, GAO commented on whether the Veterans Administration (VA) is legally authorized to deny or delay an eligible beneficiary's request for: (1) a new loan guarantee; (2) refinancing; or (3) a partial or restored guarantee. GAO held that: (1) although the Balanced Budget and Emergency Deficit Control Act of 1985 does not directly affect the entitlement, it could reduce the budgetary resources available to enforce the entitlement; and (2) VA may limit the provision of loan guarantees due to a lack of budgetary resources.

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