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119-s-1921119th CongressWALLET

Veterans Housing Stability Act of 2025

Sponsored By: Senator Blunt Rochester, Lisa [D-DE]

Introduced

Summary

Creates a VA Partial Claim Program to prevent veteran home loan foreclosures by letting the VA buy a portion of a guaranteed loan when it is delinquent or at risk of default. It would make that VA payment repayable to the VA under a noninterest contract and secure the VA either by a subordinate lien or remittance agreement.

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Bill Overview

Analyzed Economic Effects

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

Fines for false VA loan statements

If enacted, a loan holder who knowingly and materially makes a false statement on a VA loan could owe a civil penalty. The penalty would be the greater of twice the VA's loss or an amount the Secretary sets up to $27,894. The government could collect the penalty like other debts and add fees, interest, and administrative costs.

Partial mortgage help for veterans

If enacted, the VA would be allowed to buy part of a VA‑guaranteed mortgage when the loan is in default or near default. The VA could pay the lender up to 25% of the unpaid loan balance. That cap could be 30% if the borrower was already delinquent when the bill is enacted or if the VA raises it after a Presidentially declared major disaster. You would sign a noninterest agreement to repay that amount at your loan’s maturity. While unpaid, the Partial Claim would reduce your VA loan entitlement for new loans. The VA could require lenders to service the Partial Claim and pay them for those services. The VA could run the program by administrative guidance for up to three years while it sets final rules. VA decisions about Partial Claims would be final and not reviewable in court, and the VA would do random post‑payment audits. Holders must apply Partial Claim money first to arrears and cannot charge borrowers for Partial Claim expenses.

Sponsors & CoSponsors

Sponsor

Blunt Rochester, Lisa [D-DE]

DE • D

Cosponsors

  • Sen. Rounds, Mike [R-SD]

    SD • R

    Sponsored 5/22/2025

Roll Call Votes

No roll call votes available for this bill.

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