VA Home Loan Program Reform Act
Summary
VA Home Loan Program Reform Act
This 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 five-year 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.
Timeline
- Jul 30, 2025Became Public Law No: 119-31.
- Jul 30, 2025Became Public Law No: 119-31.
- Jul 30, 2025Signed by President.
- Jul 30, 2025Signed by President.
- Jul 18, 2025Presented to President.
- Jul 18, 2025Presented to President.
- Jul 16, 2025Message on Senate action sent to the House.
- Jul 15, 2025Passed Senate without amendment by Voice Vote. (consideration: CR S4373-4374)
- Jul 15, 2025Passed/agreed to in Senate: Passed Senate without amendment by Voice Vote.
- Jul 15, 2025Senate Committee on Veterans' Affairs discharged by Unanimous Consent.
- Jul 15, 2025Senate Committee on Veterans' Affairs discharged by Unanimous Consent.
- May 20, 2025Received in the Senate and Read twice and referred to the Committee on Veterans' Affairs.
- May 19, 2025Motion to reconsider laid on the table Agreed to without objection.
- May 19, 2025On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2126-2127)
- May 19, 2025Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2126-2127)
- May 19, 2025DEBATE - The House proceeded with forty minutes of debate on H.R. 1815.
- May 19, 2025Considered under suspension of the rules. (consideration: CR H2126-2129)
- May 19, 2025Mr. Bost moved to suspend the rules and pass the bill, as amended.
- May 19, 2025Placed on the Union Calendar, Calendar No. 77.
- May 19, 2025Reported (Amended) by the Committee on Veterans' Affairs. H. Rept. 119-104.
- May 19, 2025Reported (Amended) by the Committee on Veterans' Affairs. H. Rept. 119-104.
- May 6, 2025Committee Consideration and Mark-up Session Held
- Apr 9, 2025Forwarded by Subcommittee to Full Committee (Amended) by Voice Vote.
- Apr 9, 2025Subcommittee Consideration and Mark-up Session Held
- Mar 10, 2025Subcommittee Hearings Held
In the News
- VA partial claim draft arrives with detail sought on limits - National Mortgage News
- President Trump hasn’t ended veteran homelessness, but he signed legislation aimed at doing so - PolitiFact
- Congress Redrew Military, VA Benefits in 2025. The Changes Are Massive. - Military.com
- A New VA Home Loan Program Reform Act Is a Step toward Helping Veterans Avoid Foreclosure, but Implementation Issues Remain - Urban Institute
- President Trump Signs VA Home Loan Program Reform Act Into Law - The MortgagePoint
- President Trump Signs Landmark VA Home Loan Program Reform Act into Law - House Committee on Veterans' Affairs (.gov)
- VA Loan Reform Bill Now Law - National Mortgage Professional
- Congress Passes Legislation to Help Protect Veterans from Foreclosure by Reauthorizing Partial Claims with VA Home Loans - Consumer Finance Monitor
- U.S. Senate Passes the VA Home Loan Reform Act - National Association of REALTORS®
- Senate Sends Veteran Homeowner Foreclosure Relief, Homelessness Prevention Bill to President Trump’s Desk - House Committee on Veterans' Affairs (.gov)
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