Partial claims authority for VA heads to Senate after House approval by voice vote
A key bill that would allow the Department of Veterans Affairs (VA) to establish a permanent partial claims program passed the US House of Representatives on Monday, drawing bipartisan support and praise from the mortgage industry.
The amended legislation, H.R. 1815, passed by voice vote under a suspension of the rules, an expedited process typically reserved for broadly supported measures. The bill now heads to the Senate just weeks after the VA, with Republican backing, abruptly ended its previous last-resort mortgage assistance program without a replacement.
According to the Congressional Budget Office, the bill will cost $10 million in fiscal year 2025 but is expected to save the federal government $147 million over the next decade, highlighting the long-term benefits of the proposed program.
Democratic Rep. Mark Takano of California, who supports the legislation, criticized the earlier decision to sunset the VA’s Servicing Purchase program without a ready replacement.
Read more: Congress explores VA home loan changes: Will it help or hurt veterans?
“Regardless of how quickly we move in this chamber or in the Senate, it is going to take time to stand up this replacement program,” Takano said. “Meanwhile, we will see veterans lose their homes.”
The Mortgage Bankers Association (MBA), which has actively pushed for the legislation, commended the swift House passage and emphasized the urgency of establishing a permanent solution for veteran homeowners facing financial hardship.
“MBA has been a fierce advocate for distressed veteran homeowners, working with a bipartisan group of lawmakers, Veterans Affairs (VA) staff, and our members to help keep them in their homes since the VA's previous loss mitigation solution was terminated during the pandemic without a replacement,” MBA president and CEO Bob Broeksmit said in a statement.
"The need for a permanent partial claim option is urgent. We applaud the passage of this important bill, which gives the VA permanent authority to create a partial claims program that aligns with the loss mitigation options offered to borrowers across other federal housing agencies.”
Broeksmit added that the MBA will continue its advocacy work to ensure a companion bill clears the Senate swiftly.
“Thousands of struggling veteran homeowners risk foreclosure without this swift legislative action and subsequent implementation of a VA partial claim program,” he said.
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