A bill that seeks to establish a permanent partial claims program within the VA Home Loan Program was passed in the U.S. House of Representatives this week.
The VA Home Loan Program Reform Act (H.R. 1815), sponsored by U.S. Rep. Derrick Van Orden (R-WI), would bring the VA in line with other federal agencies in offering a fair and fiscally responsible path forward for veterans who have fallen behind on their mortgage payments.
This legislation establishes a permanent partial claims program within the VA Home Loan Program —bringing VA in line with other federal agencies that lend money for homes.
“As Chairman of the House Economic Opportunity Subcommittee, I am responsible for the two most successful programs in the history of the United States government – the home loan program and the GI VA home loan guarantee,” Van Orden said on the House floor before the vote. “It is my responsibility to make sure every active duty servicemember, every veteran, and every American who chooses to join the military in the future has the opportunity to use this program to fulfill the American Dream of homeownership.”
The bill is supported by the Mortgage Bankers Association (MBA).
“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,” MBA’s President and CEO Bob Broeksmit said. “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.”