Federal Daily - October 29, 2008

Veterans Offered Expanded VA Home Loans

Veterans with distressed conventional or subprime home loans can refinance through an expanded Department of Veterans Affairs (VA) guaranteed home loan program, VA said in an Oct. 24 statement. The new VA home loan options are part of the Veterans’ Benefits Improvement Act, which President Bush signed earlier this month. VA has never guaranteed subprime loans, but the expanded program will allow veterans to refinance their subprime or conventional mortgage for up to 100 percent of the value of the property. Previously, such loans were limited to 90 percent of the value. Additionally, the bill raises VA’s maximum loan amount for these types of refinancing loans.  Previously, these refinancing loans were capped at $144,000. With the new legislation, such loans may be made up to $729,750 depending on where the property is located. Increasing the loan-to-value ratio and raising the maximum loan amount will allow more qualified veterans to refinance through VA, allowing for savings on interest costs or even potentially avoiding foreclosure, VA said. The bill also extends VA’s authority to guarantee adjustable rate mortgages (ARMs) and hybrid ARMs through Sept. 30, 2012. That authority was set to expire at the end of this month, VA said. “These changes will allow VA to assist a substantial number of veterans with subprime mortgages refinance into a safer, more affordable, VA guaranteed loan,” said VA Secretary James Peake.  “Veterans in financial distress due to high rate subprime mortgages are potentially the greatest beneficiaries.” To see more, go to: http://www1.va.gov/opa/pressrel/pressrelease.cfm?id=1605.

:: Back to Top ::

SSA Announces Launch of Compassionate Allowances

The Social Security Administration (SSA) on Oct. 27 announced the launch of the Compassionate Allowances initiative, which will expedite and streamline the processing of disability claims for applicants suffering from severe medical conditions. The initiative is intended to quickly approve applications from those whose medical conditions are so bad that they obviously meet Social Security’s standards for a benefit award. The expedited decision process will begin with a list of 50 conditions—25 rare diseases and 25 cancers—that will qualify for consideration. SSA expects more conditions to be added over time. A list of the first 50 impairments can be found at www.socialsecurity.gov/compassionateallowances. The initiative is second piece of the agency’s two-track system for certain disability claims. When combined with the agency’s Quick Disability Determination process, the system could result in up to 9 percent of disability claims (about a quarter million people) being decided in an average of six to eight days. “Getting benefits quickly to people with the most severe medical conditions is both the right and the compassionate thing to do,” said SSA Commissioner Michael Astrue. “This initiative will allow us to make decisions on these cases in a matter of days, rather than months or years.” To see more, go to: www.ssa.gov/pressoffice/pr/compassionate-allowances-1008-pr.htm.

:: Back to Top ::

Air Force Creates New Nuclear Arsenal Command

In an effort to improve management of the nation’s nuclear arsenal, the Air Force announced on Oct. 24 it was creating a new command that will centralize control over the country’s domestic nuclear weapons. Air Force Secretary Michael Donley said the new command will fold into its ranks thousands of airmen and all of the Air Force’s domestic nuclear capabilities. The new command, called the Global Strike Command, will include both the 8th and 20th Air Force. The 8th Air Force, currently within Air Combat Command, is made up of the Air Force’s B-2 Spirit and B-52 Stratofortress bombers. The 20th Air Force, currently under Air Force Space Command, maintains and operates the service’s arsenal of intercontinental ballistic missiles. An additional squadron of B-52s mandated by Congress also will fall within the new command. This change effectively splits the Air Force’s bomber force, leaving its B-1B Lancer bombers with Air Combat Command and moving the service’s cyber, intelligence, reconnaissance and surveillance responsibilities out of 8th Air Force. “This is a critical milestone for us. It’s a new starting point for reinvigoration of this enterprise,” Donley said. The move comes as the Air Force attempts to reorganize its troubled nuclear weapons management program. In 2006, nuclear missile nose cones were inadvertently shipped to Taiwan, and last year the Air Force mistakenly flew nuclear weapons from Minot AFB, N.D., to Barksdale AFB, La. The force’s top two leaders resigned, and 15 senior officers, including six generals, were disciplined. Officials have not yet picked a location for the command’s headquarters or identified who its commander will be, but said they plan to name a provisional commander in the next few months. To see more, go to: www.af.mil/news/story.asp?id=123121279.

:: Back to Top ::