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119-hr-1815119th CongressWALLET

VA Home Loan Program Reform Act

Sponsored By: Representative Van Orden, Derrick [R-WI-3]

Became Law

Summary

Expanded VA loss-mitigation authority and a new Partial Claim Program give the Secretary more power to prevent foreclosures on VA‑guaranteed home loans and add oversight and funding for veteran housing needs. The law also requires a report on how litigation affects veterans' access to real‑estate representation and adjusts rules for loan servicing.

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  • Veterans and homeowners: Creates a Partial Claim option that lets the VA buy a portion of a defaulted loan to prevent foreclosure, generally capped at 25 percent of the unpaid principal and up to 30 percent for certain pandemic-era missed payments. This option is usually limited to one claim per loan and ends five years after enactment.
  • Loan holders and servicers: Establishes a mandatory loss‑mitigation sequence they must follow before a loan can be bought in full, permits VA payments to loan holders to resolve defaults, requires holder certifications, and allows random post‑payment audits.
  • Homeless veterans and VA programs: Authorizes funding for Comprehensive Service Programs for Homeless Veterans of $344 million for each of fiscal years 2025 and 2026 and $257.7 million per year through fiscal year 2030.

*This law increases federal spending by authorizing those homelessness program funds and expanding VA's use of public funds for partial claims and loss‑mitigation actions.*

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

More funding for homeless veterans programs

The law authorizes $344 million for each of FY2025 and FY2026 for VA’s Comprehensive Service Programs for Homeless Veterans. It then authorizes $257.7 million for each year through FY2030. These are authorizations; Congress must still appropriate the money before VA can spend it.

Partial claim relief for VA mortgages

If you have a VA‑guaranteed mortgage on your primary home that is in default or at risk, VA can step in. VA can make a one‑time partial‑claim payment to your servicer up to 25% of your unpaid balance. If you missed a payment between March 1, 2020 and May 1, 2025, the cap is 30%. The money first covers past‑due amounts and costs like taxes, insurance, or HOA dues, and VA takes a second lien. Usually there is only one partial claim per loan, with an extra one allowed after a Presidential major disaster or within 120 days after it. Lenders must follow a VA loss‑mitigation sequence before moving to foreclosure. VA can make new partial claims for five years after enactment. VA may seek recovery and may reduce your future VA home loan entitlement, and VA decisions under this program are final and not reviewable in court.

Sponsors & CoSponsors

Sponsor

Van Orden, Derrick [R-WI-3]

WI • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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