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May 20.2025

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Support for VA Borrowers as House Passes Partial Mortgage Claim Bill

House passes bill to give VA borrowers a partial mortgage claim option

New Legislation Aims to Support VA Borrowers

On May 19, 2025, the House of Representatives passed H.R. 1815, known as the V.A. Home Loan Program Reform Act, which aims to help veterans take advantage of a partial mortgage claim option. This significant legislative move comes after a short debate, highlighting bipartisan support for veterans' needs.

Understanding the Importance of Partial Claims

The proposed partial claim option is seen as critical for veterans who may face financial distress. With the discontinuation of the Veteran Affairs Servicing Purchase (VASP) program on May 1, the urgency surrounding this new legislation has only increased. Housing advocates argue that having a permanent partial claims program is essential to prevent distressed veteran homeowners from losing their homes.

Bipartisan Support for Veteran Welfare

The legislation received accolades from both sides of the aisle, showcasing unity in addressing veterans' financial issues. Rep. Derrick Van Orden (R-Wis.), who championed the bill, noted the necessity of reforming the existing VA home loan program to better serve those who have served the nation. This sentiment was echoed by industry leaders like Isaac Boltansky of PennyMac, who expressed optimism about swift movement in the Senate.

Responses from Industry Leaders

The Mortgage Bankers Association (MBA) also strongly supported the legislative action, stating the urgency for a replacement solution to the loss mitigation measures that were cut during the pandemic. Bob Broeksmit, president and CEO of MBA, emphasized that the new bill provides permanent authority to establish a partial claims program that aligns with options available to borrowers through other federal housing entities.

Implications for Future Veteran Assistance

This legislative progress holds potential long-term benefits for veterans seeking financial assistance. The new partial claims program could mitigate risks associated with homeownership for veterans, ensuring they have a safety net in times of economic hardship. As this bill moves to the Senate, the veteran community continues to hope for expedited deliberation, underscoring the need for action that aligns with the dignity and sacrifice of those who served.

A Clear Path Forward for Veterans

As the Senate deliberates over H.R. 1815, stakeholders remain vigilant about the bill's future. The collaboration shown in the House is a promising sign that lawmakers can work together for veteran welfare and housing stability.

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