VA Home Loan Program Reform Act

The VA Home Loan Program Reform Act (HR 1815) establishes a new "Partial Claim Program" that allows the Department of Veterans Affairs to purchase up to 25% (or 30% for certain cases) of the unpaid principal balance on a VA-guaranteed home loan when a veteran is in default or at imminent risk of default. This partial payment helps prevent foreclosure while giving the VA a subordinate secured interest in the property, and requires veterans to go through a sequence of loss mitigation options before the VA can fully purchase the loan. The program includes provisions for audits, finality of VA decisions (not subject to judicial review), and a five-year sunset clause. The bill also requires the VA to submit a report on strategies to prevent veterans from being disadvantaged in home purchasing due to litigation.