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House Passes Bill to Establish Home Loan Safety Net Program at VA

Industry Update
May 19, 2025

Source: House Committee on Veterans’ Affairs

The House Committee on Veterans’ Affairs Chairman Mike Bost (R-Ill.) and Subcommittee on Economic Opportunity Chairman Rep. Derrick Van Orden (R-Wis.), released the following statements after the House passed H.R. 1815, the VA Home Loan Program Reform Act, which would create a partial claim program at the Department of Veterans Affairs (VA) as part of the VA Home Loan program to allow veterans who have fallen behind on their mortgages to receive federal assistance. H.R. 1815 also includes the proper funding levels for the VA Grant and Per Diem program, as part of VA’s homeless programs to fund community agencies providing services to veterans experiencing homelessness.

“The Biden administration was dead wrong to risk the future of VA’s Home Loan program by creating the VASP program, and the Trump administration was right to put an end to it. I am proud to have worked alongside my friend, Economic Opportunity Chairman Van Orden, our House Republican colleagues, and key stakeholders to create the right safety net for veterans who have fallen behind on their mortgage payments,” said Chairman Bost. “Our bill is a fiscally responsible solution to ensure that veterans in financial hardship have access to the tools they need to stay in their homes. I look forward to seeing this commonsense, bipartisan bill passed in the Senate and signed into law by President Trump as soon as possible.”

“This program has worked in the past, keeps vets and their families in their homes, and does so at a fraction of the cost of the horrific VASP program,” said Economic Opportunity Chairman Van Orden. “The VA Home Loan Program Reform Act is not just a fix – it is necessary course correction. I thank Chairman Bost for his support on this legislation and helping it get over the finish line for our vets.”

“MBA has been a fierce advocate for distressed veteran homeowners, working with a bipartisan group of lawmakers, Veterans Affairs (VA) staff, and our members to help keep them in their homes since the VA’s previous loss mitigation solution was terminated during the pandemic without a replacement. The need for a permanent partial claim option is urgent. We applaud the passage of this important bill, which gives the VA permanent authority to create a partial claims program that aligns with the loss mitigation options offered to borrowers across other federal housing agencies. We will continue to work with a bipartisan group of senators to get similar legislation passed as soon as possible. Thousands of struggling veteran homeowners risk foreclosure without this swift legislative action and subsequent implementation of a VA partial claim program,” said Bob Broeksmit, CMB, President and CEO, Mortgage Bankers Association.

“We commend the House of Representatives’ efforts to empower the VA with the ability to offer a standalone partial claim. Those who have served our country deserve access to the same protections available to other homeowners, and the passage of the VA Home Loan Program Reform Act of 2025 out of the House is a critical step toward that goal. This legislation will enable the VA to develop a strong, sustainable solution that provides mortgage servicers with the tools they need to support Veterans in today’s higher-rate environment,” said Rocket Mortgage.

“NCHV applauds the House of Representatives for its bipartisan commitment to swiftly ensuring that VA has the tools it needs to support veterans in a housing crisis and veterans facing homelessness. This work is a continuation of the commitments Congress made to veterans in The Elizabeth Dole Act.  We encourage the Senate to pass this legislation quickly, to minimize the harm that inaction will inevitably bring to veterans in a housing crisis. We also urge the Appropriations Committee to ensure VA is provided sufficient funding to fully implement these provisions,” said Kathryn Monet, CEO, National Coalition for Homeless Veterans (NCHV).

“Mission Roll Call applauds the House of Representatives for advancing the amended version of H.R. 1815 with bipartisan support. This critical legislation ensures the Department of Veterans Affairs has the flexibility it needs to assist veterans at risk of mortgage default—without compromising its core mission or creating unsustainable programs. We urge the Senate to act swiftly to pass this bill and protect the stability and dignity of the veterans who have sacrificed so much for our country,” said Jim Whaley, CEO, Mission Roll Call.