H.R. 1815 · 119th Congress · House
VA Home Loan Program Reform Act
Introduced 2025-03-03 · Sponsored by Rep. Van Orden, Derrick [R-WI-3] (R-WI) · Last updated 2026-03-31
Last action (2025-07-30): Became Public Law No: 119-31.
Summary
Gives the VA new tools to help veterans who fall behind on their home loans avoid foreclosure. The VA can now pay lenders directly to keep a loan current, and it establishes a partial claim program with loss mitigation procedures similar to what FHA and conventional mortgage servicers already have. With roughly 3.6 million active VA home loans, the program was overdue for these kinds of servicing options.
The Good
Helps veterans avoid foreclosure on VA-guaranteed home loans
Authorizes the VA to pay loan holders to avoid foreclosure and establishes a partial claim program with loss mitigation procedures. This gives veterans who fall behind on payments more options before losing their homes.
Modernizes VA home loan servicing tools
The VA home loan program lacked the loss mitigation tools available to FHA and conventional mortgage servicers. This bill brings VA loan servicing options closer to industry standard, benefiting the approximately 3.6 million active VA home loans.
The Bad
Increased cost to the VA home loan guarantee fund
Paying lenders to avoid foreclosure transfers costs from private loan holders to the federal government. If defaults increase, the program could require additional appropriations beyond current projections.
May incentivize risky lending by reducing lender consequences
If the VA absorbs more of the cost of defaults, lenders have less financial incentive to ensure borrowers can sustain their mortgage payments, potentially leading to loans being made to veterans who would be better served by renting.
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