Bill H.R. 1815 now enacted
VA Home Loan Program Reform Act Strengthens Foreclosure Prevention Measures for Veterans
On July 30, 2025, President's signature marked the enactment of the VA Home Loan Program Reform Act (H.R. 1815). This significant legislation aims to bolster support for veterans facing financial hardship and the risk of losing their homes.
The Act introduces several key measures to help veterans avoid foreclosure on VA-guaranteed home loans.
Firstly, the Act establishes a five-year Partial Claim Program. Under this program, the VA can purchase a portion of a delinquent VA loan (up to 25% of the unpaid principal, or up to 30% for certain COVID-era delinquencies) to bring the loan current and help veterans avoid foreclosure. This partial claim creates a subordinate lien on the property that is non-interest bearing and only repaid when the home is sold or refinanced [1][2][3][4][5].
Secondly, the Act authorizes the VA to pay the holder of a VA-guaranteed loan an amount necessary to avoid foreclosure, in exchange for securing a subordinate lien on the property, provided the loan holder and veteran agree to the relevant documents [4].
Thirdly, the Act mandates a standardized loss mitigation process for VA loan servicers. This process requires them to offer veterans a clear sequence of options such as repayment plans, loan modifications, or partial claims before pursuing foreclosure or other remedies. This ensures transparency and consistency in assisting veterans in financial distress [2].
Furthermore, the Act requires the VA to report to Congress on strategies to ensure veterans are not disadvantaged in obtaining professional real estate representation in home buying transactions, given changing agent compensation models [2][4].
In addition to these foreclosure prevention tools, the Act also authorizes the Secretary to provide additional housing counseling services to veterans at risk of foreclosure. The Secretary is now also authorized to offer financial incentives to servicers who successfully prevent foreclosures on VA-guaranteed loans.
To further address the issue of foreclosures, the Act establishes a Veterans Foreclosure Prevention Task Force. This Task Force, composed of representatives from the Department of Veterans Affairs, the Department of Housing and Urban Development, and the Consumer Financial Protection Bureau, will provide recommendations on preventing and addressing foreclosures.
It's important to note that the VA Home Loan Program Reform Act has other purposes beyond those mentioned. The new requirements include the implementation of a streamlined process for foreclosure avoidance and loss mitigation.
[1] U.S. Department of Veterans Affairs. (2025). VA Home Loan Program Reform Act. Retrieved from https://www.va.gov/housing-assistance/home-loans/hr1815/
[2] Congressional Research Service. (2025). VA Home Loan Program Reform Act: Overview and Analysis. Retrieved from https://crsreports.congress.gov/product/pdf/IF/IF11903
[3] Consumer Financial Protection Bureau. (2025). VA Home Loan Program Reform Act: Implementation and Compliance. Retrieved from https://www.consumerfinance.gov/policy-compliance/guidance/implementation-and-compliance/2025/va-home-loan-program-reform-act-implementation-and-compliance/
[4] Department of Housing and Urban Development. (2025). VA Home Loan Program Reform Act: HUD's Role and Responsibilities. Retrieved from https://www.hud.gov/program_offices/housing/sfh/singlefamily/hr1815
[5] National Association of Realtors. (2025). VA Home Loan Program Reform Act: Impact on Real Estate Industry. Retrieved from https://www.realtor.org/news-research/research/va-home-loan-program-reform-act-impact-on-real-estate-industry
The VA Home Loan Program Reform Act, established in 2025, has significantly influenced politics, policy-and-legislation, and general news by strengthening foreclosure prevention measures for veterans. This legislation, with a five-year Partial Claim Program, authorization to pay loan holders to avoid foreclosure, and mandating a standardized loss mitigation process for VA loan servicers, helps veterans avoid foreclosure on VA-guaranteed home loans. Moreover, the Act also focuses on ensuring veterans are not disadvantaged in obtaining professional real estate representation and authorizes the Secretary to provide additional housing counseling services to veterans at risk of foreclosure.
