YourVoice.Now Summary
Average Household ImpactCivil LibertiesTransparency & AccountabilityVeterans facing foreclosure could have the VA buy up to 25% of their mortgage balance to keep the home.
Average Household Impact
- Foreclosure options for veterans — VA may buy up to 25% of a defaulted loan balance
- Partial-claim cap for pandemic-era gaps — Set at 30% for payments missed March 2020 to May 2025
- Homeless veteran program funding — $344 million for 2025 and 2026, then $257.7 million yearly
Civil Liberties
- Judicial review — VA partial-claim and default decisions made final and not reviewable in court
Transparency & Accountability
- Post-payment audits — Random-sample audits required where lenders self-certify compliance
- Program sunset — Partial Claim Program ends five years after enactment
- Congressional report — VA must report in 90 days on veterans' access to real estate agents
The details
Veterans behind on a VA-backed mortgage would get a new way to avoid foreclosure. The VA could buy part of the loan balance so the borrower keeps the home. That purchase is called a partial claim. It could cover up to 25% of the unpaid principal. Veterans who missed payments between March 2020 and May 2025 could go up to 30%. Lenders would have to walk a veteran through a set order of options before the VA takes over a loan. The program would run for five years after enactment. A borrower who later defaults would still owe the VA for its loss. VA decisions on partial claims would be final and could not be challenged in court. The bill also raises funding for homeless veteran programs. That is $344 million for 2025 and 2026, then $257.7 million a year through 2030.
Congressional Summary
VA Home Loan Program Reform ActThis bill authorizes the Department of Veterans Affairs (VA) to take certain actions in cases of default on home loans under the VA home loan program and establishes a partial claim program.First, the bill authorizes the VA to pay the holder of a loan guaranteed by the VA an amount necessary to avoid the foreclosure of the loan, provided that the holder of the loan and the veteran obligated on the loan execute documents to ensure the VA obtains a secured interest in the property covered by the loan.The VA must prescribe loss mitigation procedures to help prevent the foreclosure of such a home loan. The VA may not take specified administrative actions (e.g., consent to the modification of loan terms) until the sequence of mitigation options has been completed.Next, the bill establishes a Partial Claim Program under which the VA may make a partial claim (purchase a portion of the indebtedness) on VA loans for primary residences that are in default or at imminent risk of default. Individuals who default on loans for which the VA has made a partial claim under this program must be liable to the VA for any loss resulting from the default.Finally, the VA must report to Congress on its strategy to ensure that veterans who purchase homes under the VA home loan program are not at a disadvantage when attempting to secure representation by a real estate agent or broker.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-03-03
- Date Added
- 2026-07-23
- Source
- Congress.gov →
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