Veterans' Home Loan Program Improvements and Property Rehabilitation Act of 1987

Veterans' Housing Rehabilitation and Program Improvement Act of 1987 - Amends Federal veterans' benefits provisions to extend through FY 1989 the applicability of the veterans' loan origination fee (a fee paid by veterans for housing loans made to them by the Administrator of Veterans Affairs). Directs the Administrator to determine current and anticipated amounts in the Veterans' Administration Loan Guaranty Revolving Fund, and to cancel collection of the veterans' loan origination fee if the Fund exceeds a certain level.

Decreases from 60 to 30 percent of the loan the loan amount guaranteed by the Veterans Administration (VA) on loans made to qualifying veterans for the purchase or construction of homes. Repeals a specified provision of Federal law guaranteeing the payment of a specified amount of each housing loan made to a veteran. Similarly decreases from 60 to 30 percent the loan amount guaranteed by the VA on loans made to veterans for the purchase of manufactured homes and lots for homes. Repeals a specified provision requiring the guaranty of a specified amount of each such loan.

Requires the Administrator, upon receipt of a foreclosure notice to a veteran on a housing loan guaranteed by the VA, to contact the veteran concerned to provide such veteran with information about: (1) alternatives to foreclosure; and (2) the veteran's and the VA's liability with respect to the loan, unless the Administrator has assurances that the lender has adequately advised the veterans with respect to such matters. Authorizes the payment of added interest to a lender on a defaulted loan when there is a delay in a foreclosure sale caused by the VA or by the exercise of forbearance by the lender at the request of the Administrator.

Directs the Administrator to make direct loans to eligible veterans in American Samoa in amounts equal to amounts provided to such veterans by the Government of American Samoa.

Removes the requirement of occupancy by the veteran for eligibility for loan refinancing through the VA, and for the guarantee of loans to a veteran for the purchase of manufactured homes or lots for homes. Removes the requirement of home occupancy in nearly all cases of loans guaranteed to veterans, except for the case in which a loan is guaranteed to a veteran while such veteran is in active status with the armed forces, at which time the occupancy requirement will be met if such veteran's spouse and all of their dependent children occupy such home.

Authorizes the Administrator, in order to assist homeless veterans and their families in acquiring shelter, to enter into agreements with an organization, any political subdivision of a State, or the District of Columbia, in which the Administrator sells real property acquired by the Administrator as the result of a default on a veteran's loan as guaranteed by the VA. Authorizes the Administrator to enter into such agreements only if: (1) the Administrator determines that such action will not adversely affect the VA or any of its funds or programs in any way; (2) the entity which purchases the property agrees to utilize the property solely as a shelter primarily for homeless veterans, complies with all zoning requirements, and makes no incompatible use of the property purchased; and (3) the Administrator determines that there is little likelihood of the property being sold for a price sufficient to reduce the liability to the VA of the veteran who defaulted on the guaranteed loan. Further authorizes the Administrator, in order to assist veterans to obtain training pursuant to the Veterans' Job Training Act, to convey to the persons previously described such real property and improvements therein for an amount not less than 75 percent of its fair market value if the purchasers agree to: (1) use veterans in a program pursuant to such Act in the rehabilitation of residences on such real property; and (2) provide a priority to veterans in the sale of such rehabilitated residences. Requires the Administrator to reduce a veteran's liability under a guaranteed loan defaulted on by the amount equal to the reduction in the sale price of the property below the fair market value of the property.

Authorizes the Administrator to include, as part of a loan to finance a purchase of property acquired by the Administrator as a result of a defaulted loan guaranteed by the Administrator, an amount to be used for the purpose of rehabilitating the property to be purchased with the loan.

Provides that, if a veteran disposes of residential property securing a guaranteed, insured, or direct housing loan obtained by the veteran and the veteran notifies the holder of the loan before disposing of the property, the veteran shall be relieved of all further liability to the Administrator on account of such loan (including liability for any loss resulting from the default of any subsequent purchasers) if: (1) the loan is current; (2) the purchaser agrees to abide by the original loan agreement; and (3) the purchaser qualifies from a credit standpoint in an amount equal to the unpaid balance of the loan. Requires the holder, if he or she determines that the loan is not current or that the purchaser of such property does not meet the above credit requirements, to notify the veteran and the Administrator of such determination, and notify the veteran that the veteran may appeal the determination to the Administrator. Directs the Administrator, upon request of the veteran, to review such determination and make his or her own determination on the matter. Requires the holder to approve such a property transfer if the Administrator determines that the loan is current and that the new purchaser is qualified for the loan. Authorizes the holder to make an immediate demand of all loan principal if the veteran disposes of property to a transferee without the loan being current or without such transferee being credit-qualified. Authorizes the holder to make such demand also if the holder disposes of property secured under a loan guarantee without notifying the loan holder or the Administrator of such transfer. Requires any loan holder who has knowledge of a property transfer by a veteran to notify the Administrator of such transfer or impending transfer. Directs the Administrator to require that each contract entered into with a veteran under a guaranteed-loan agreement contain provisions implementing the above requirements.

Authorizes the Administrator to provide assistance to a veteran for the purpose of avoiding the foreclosure of a housing loan made to that veteran and guaranteed by the Administrator. Allows such assistance only if specified conditions are met (relating to lateness of payment and the belief that the veteran will soon be able to resume such payments on his/her own). Requires a loan made under this provision to be made to the holder of the primary loan (the holder of the original loan made to the veteran), such loan to be applied first to any delinquent payments and then to future payments such as taxes, assessments, etc. Authorizes the Administrator to make more than one loan under this provision to each veteran, but limits to $8,400 the total to each veteran. Outlines further administrative provisions relating to the making of such assistance loans, including security for the loan as well as the determination of the loan interest rate. Requires any veteran receiving such an assistance loan to execute an agreement to repay the loan within a reasonable period of time as determined by the Administrator. Provides that the Administrator's decision on any question of law or fact regarding such loan assistance shall be final and conclusive, without recourse to any courts or other Federal official. Prohibits the Administrator from making any such assistance loan after the two-year period beginning on the date of enactment of this Act.

Amends Federal veterans' benefits regarding the use of appraisers in the VA home loan guaranty program to require any such appraiser employed by the VA to successfully complete a written test, submit a sample appraisal, certify to an appropriate number of years of experience as an appraiser, and submit recommendations from other appraisers. Revises provisions concerning appraisals made by lenders to require the appraiser to forward an appraisal report to the Administrator for review, at which time the Administrator shall determine the reasonable value of the property and notify the veteran of such determination. Authorizes the Administrator to allow certain lenders to determine the reasonable value of the property. Directs the appraiser selected by the Administrator, in such a case, to forward the appraisal report directly to the lender for review, and the lender, upon request, to furnish a copy of such appraisal to the veteran concerned.

Directs the Administrator to exclude from a veteran's liability under a defaulted loan procedure certain interest and charges incurred with respect to such a loan arising 30 days or more after the veteran has made an offer to transfer the property to another purchaser, and the Administrator has refused to accept such offer.