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On Wednesday, July 30th, President Donald Trump signed a new law aimed at preventing veteran homelessness. Sponsored by Derrick Van Orden (R-WI), HR. 1815, or the VA Loan Program Reform Act aims to balance providing actionable results for veterans with minimizing taxpayer capital.
A July 16th joint statement from the House and Senate Veteran’s Affairs Committee reads: “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. The VA Home Loan Program provides one of the best benefits VA has to offer, and has helped veterans and their families build home equity since its inception in 1944.” HR. 1815 includes a partial claims program aimed at preventing veteran homeowners from facing foreclosure, especially those recovering from Pandemic-induced economic hits.
A partial claims program allows borrowers to defer missed mortgage payments without triggering foreclosure, effectively giving veterans more breathing room. This program would allow veterans who are late on payments to tack them on to the tail end of their loans. Additionally, veterans will soon have access to similar mortgage protections in line with FHA/USDA by authorizing partial claims.
H.R. 1815 was introduced in the House on March 3, 2025, passed the House on May 19, and was approved by the Senate on July 15, showing effective bipartisanship.
Another aim of this act is to replace the Biden-era Veterans Affairs Servicing Purchase (VASP) program. Created in 2024, the Trump administration slashed this program in May. Under the VASP program, the Department of Veteran’s Affairs (VA) bought delinquent veteran loans from mortgage servicers, adjusted the loans, and subsequently offered borrowers a 2.5% fixed interest rate for the duration of the loan. Some Republicans argued that this act was enacted without input from Congress, carried a heavy cost for taxpayers, and was a threat to the VA Home Loan Program as a whole. The Trump administration asserts that the VASP Act “put a massive burden on hardworking Americans while failing to solve the real issue.”
With support from both parties, this act is also backed by external stakeholders including Mortgage Bankers Association, Rocket, National Association of Realtors (NAR), National Association of Mortgage Brokers (NAMB), Lyft, Mission Roll Call, New England Center and Home for Veterans (NECHV), National Coalition for Homeless Veterans (NCHV), Veterans of Foreign Wars (VFW), and The American Legion.
(Photo by Sydney Rae on Unsplash)
