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Strengthens tools to help veterans avoid foreclosure on VA‑backed mortgages, creates a temporary “Partial Claim Program” so VA can cover part of a delinquent loan and take a junior lien, and sets clear rules for loss‑mitigation, servicer duties, and audits. Some VA decisions tied to these tools are made final and not subject to court review, and certain actions can’t occur until a set sequence of loss‑mitigation options is tried. Directs VA to deliver a 90‑day report on how to prevent VA loan users from being disadvantaged when finding a real estate agent or broker, and extends/sets specific funding authorizations for programs serving homeless veterans through fiscal year 2030.
In 38 U.S.C. §3732(a)(1), replace each occurrence of the pronoun “it” with the word “loan.”
The Secretary may, under terms and conditions the Secretary sets, pay the holder of a loan guaranteed under this chapter an amount necessary to avoid foreclosure of that loan.
The Secretary may require the loan holder and the veteran obligated on the loan to execute all documents needed to ensure the Secretary obtains a secured interest in the property covered by the loan.
The Secretary may require the holder of the loan to take actions necessary to carry out this paragraph, including preparing, executing, transmitting, receiving, and recording documents, and requiring the holder to place the loan in forbearance.
In 38 U.S.C. §3732(a)(2)(B), replace each occurrence of the unspecified term with the phrase “housing loan.”
Veterans with VA‑backed mortgages gain more ways to avoid foreclosure, including forbearance options and a new partial‑claim tool that can resolve past‑due balances without requiring full refinance. Mortgage servicers and VA loan holders face clearer duties, sequencing requirements for loss‑mitigation, and audits, which could improve consistency and reduce errors but add compliance work. Some VA determinations become final and not challengeable in court, which speeds decisions but may concern borrowers who want judicial review. Veterans using VA loans to buy or sell homes could benefit from policy changes that reduce perceived disadvantages when seeking real estate agents. Homeless veterans and providers get steadier funding through FY 2030, supporting continuity of housing and support services. VA staff will implement the new program, oversee compliance, and administer extended authorizations.
Last progress July 30, 2025 (7 months ago)
Introduced on March 3, 2025 by Derrick Van Orden
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2126-2127)
Passed/agreed to in Senate: Passed Senate without amendment by Voice Vote.
President of the United States