A bill to permit the release of certain veterans from liability to the United States arising out of loans made, guaranteed, or insured under chapter 37 of title 38, United States Code.

Provides that if any veteran conveys residential property securing a guaranteed, insured, or direct loan obtained by him under the provisions of a veterans' home loan program, without receiving a release from liability with respect to such loan, and a default in the payment of such loan first occurs after such conveyance, the Administrator of Veterans' Affairs shall release such veteran from any liability to the United States arising out of such loan if such property was conveyed in a bona fide sale transaction to a transferee who, by contract, assumed full liability for the balance of the loan remaining unpaid and all other obligations of the veteran under the terms of the instrument creating and securing such loan. (Amends 38 U.S.C. 1817)