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

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.