; and (B) procedures for the resale of the lot or dwelling (or both) purchased, constructed, or improved using the proceeds of the loan. (5) That the loan is made in a responsible and prudent manner, subject to standards and procedures as are necessary for the reasonable protection of the financial interests of the United States. . (2) Memorandums of understanding, agreements, and determinations Section 3762(b) of such title is amended to read as follows: (b) (1) To carry out the purpose of subsection (a), the Secretary may— (A) enter into a memorandum of understanding with a tribal organization, other entity, or individual; (B) rely on agreements or determinations of other Federal agencies to guarantee, insure, or make loans on trust land; and (C) enter into other agreements or take such other actions as the Secretary determines necessary. (2) If the Secretary determines that the requirements under subsection (a) are not being enforced by a tribal organization, other entity, or individual that is a party to any memorandum of understanding, agreement, or determination described in paragraph (1), the Secretary may cease making new direct housing loans to Native American veterans under this subchapter within the area of the authority of the tribal organization, other entity, or individual (as the case may be). . (b) Direct loans to Native American veterans To refinance existing mortgage loans Section 3762(h) of such title is amended to read as follows: (h) The Secretary may make direct loans to Native American veterans in order to enable such veterans to refinance existing mortgage loans for any of the following purposes: (1) To refinance an existing loan made under this section, if the loan— (A) meets the requirements set forth in subparagraphs (B), (C), and (E) of paragraph (1) of section 3710(e) of this title; (B) will bear an interest rate at least one percentage point less than the interest rate borne by the loan being refinanced