To amend title 38, United States Code, to clarify the rights of veterans with regard to procedures for housing loans upon default, and for other purposes.

Revises provisions with respect to the loan default procedure for veterans' housing loans guaranteed by the Department of Veterans Affairs. Authorizes the Secretary of Veterans Affairs to reimburse the holder of the loan obligation for such advances, costs, and attorney's fees properly and reasonably incurrred in connection with the default and to receive an assignment of the loan and security. Directs the Secretary to notify the mortgagor, within ten days after receiving a notice of default from the veteran, that the Secretary may purchase the loan from the holder. Outlines notification and loan purchase requirements. Directs the Secretary to obtain and hold a quitclaim deed from the mortgagor to the Secretary for the real property securing the loan after the loan is purchased from the loan holder and before the Secretary makes any modifications to the loan instruments or grants any forbearance. Allows such unrecorded quitclaim deed to be returned to the mortgagor if the mortgagor brings the loan current and keeps it current for 12 consecutive months.

Makes permanent all such loan default procedures (currently terminated as of December 31, 1992).