Sponsor
Derrick Van Orden
Representative · R-WI
Representative · R-WI
The bill expands VA tools and funding to keep veterans housed and help homeless veterans—improving near-term housing stability and service planning—but does so by creating sizable new federal costs and concentrating discretionary authority in the VA with limited judicial review.
Veterans at risk of foreclosure: VA-required loss-mitigation options (including partial claims that can cure up to ~25–30% of unpaid principal) and VA payments to cure arrears increase the chances that veterans keep their homes.
Homeless veterans and local partners: Multi-year, predictable funding ($344M for FY2025–2026 and $257.7M annually through FY2030) enables expansion of housing, case management, and health/supportive services for veterans experiencing homelessness.
Loan holders and servicers: Required compensation, certification-based payment authority, and random post-payment audits create an operational pathway for servicers to participate and be paid more quickly, facilitating implementation of loss-mitigation.
Taxpayers: The partial-claim payments (up to 25–30% of principal), certification-based payment approach, and expanded homelessness funding expose federal taxpayers to substantial new outlays and increase risk of improper payments.
Veterans and lenders: The Secretary's decisions on mitigation payments and eligibility are final and unreviewable, removing judicial oversight and concentrating discretion in the VA, which can disadvantage borrowers or holders in disputes.
Veterans who accept a partial claim: Recipients remain liable to the United States for Secretary losses and risk reduced VA loan entitlement if they later default, which can have long-term financial consequences for borrowers.
Based on analysis of 5 sections of legislative text.
Creates a temporary VA Partial Claim Program, mandates loss‑mitigation sequencing before certain VA actions, and raises authorized funding for homeless‑veteran services through FY2030.
Expands VA authority to prevent foreclosures and to buy partial amounts of defaulted VA‑guaranteed mortgages, requires lenders and the VA to follow a mandatory loss‑mitigation sequence before certain enforcement actions, and temporarily authorizes a new Partial Claim Program to cover part of unpaid principal. Also increases and phases the authorization for grants for homeless‑veteran comprehensive services and directs the VA to report on veteran access to real‑estate representation.
Official title: To amend title 38, United States Code, to authorize the Secretary of Veterans Affairs to take certain actions in the case of a default on a home loan guaranteed by the Secretary, and for other purposes.
Introduced March 3, 2025 by Derrick Van Orden · Last progress July 30, 2025