U.S. Senators Jerry Moran and Richard Blumenthal, along with U.S. Congressmen Mike Bost and Mark Takano, have announced the passage of H.R. 1815, the VA Home Loan Program Reform Act. This legislation aims to support veterans facing financial difficulties by enhancing the VA's ability to help them retain their homes and avoid foreclosure.
"This bipartisan and bicameral legislation will assist veterans who are facing financial hardships and provide VA with a tool to better help veterans stay in their homes and avoid foreclosure," stated the lawmakers. They emphasized that the program has been beneficial since its inception in 1944, helping veterans build home equity.
The act introduces a partial claim program as a last-resort option to preserve veteran homeownership while saving taxpayer dollars by preventing foreclosures. It also allows for critical funding to grantees offering transitional housing to homeless veterans through the Grant and Per Diem program.
"We appreciate the efforts of mortgage servicers and holders for their work during the Congressional process," they added, encouraging continued collaboration between VA and mortgage servicers as the new program is implemented.
The reform act authorizes a Partial Claim program within VA’s loss mitigation tools, aimed at helping eligible borrowers behind on mortgage payments avoid foreclosure. The industry estimates this could aid over 20,000 seriously delinquent borrowers in retaining their homes.
Additionally, the legislation increases funding authorization for Comprehensive Service Programs for Homeless Veterans, enabling full implementation of provisions from Sen. Moran’s previous legislation.
The bill now awaits presidential approval to become law.
