arrow_back Back to App

VA Home Loan Reform: New Tools to Prevent Foreclosure for Veterans.

This Act grants the Department of Veterans Affairs (VA) new powers to actively prevent foreclosures on VA-guaranteed home loans, primarily by establishing the Partial Claim Program. This program allows the VA to purchase a portion of a veteran's outstanding debt (up to 20% of the principal) to resolve default, with the veteran repaying the VA at the end of the loan term. The law also mandates that lenders follow mandatory loss mitigation procedures to increase financial security for veterans.
Key points
The VA can now directly pay a loan holder an amount necessary to stop foreclosure, requiring the veteran to grant the VA a secured interest in the property.
The new Partial Claim Program allows the VA to cover up to 20% of the unpaid principal balance, with repayment deferred until the end of the loan term, often at 0% interest.
Lenders must follow mandatory loss mitigation procedures established by the VA before proceeding with foreclosure.
Decisions made by the VA regarding these debt mitigation programs are final and cannot be challenged in court.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_HR_8647
Sponsor: Rep. Van Orden, Derrick [R-WI-3]
Process start date: 2024-06-05
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

VA Home Loan Program Reform Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_8647.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-06-05.

What are the main provisions?

Key points include:

  • The VA can now directly pay a loan holder an amount necessary to stop foreclosure, requiring the veteran to grant the VA a secured interest in the property.
  • The new Partial Claim Program allows the VA to cover up to 20% of the unpaid principal balance, with repayment deferred until the end of the loan term, often at 0% interest.
  • Lenders must follow mandatory loss mitigation procedures established by the VA before proceeding with foreclosure.
  • Decisions made by the VA regarding these debt mitigation programs are final and cannot be challenged in court.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Van Orden, Derrick [R-WI-3].

What is the latest detailed status?

The latest detailed status is: Forwarded by Subcommittee to Full Committee (Amended) by Voice Vote.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Real Estate Benefits Economy