IIB 
119TH CONGRESS 
1ST SESSION H. R. 1815 
IN THE SENATE OF THE UNITED STATES 
MAY 20, 2025 
Received; read twice and referred to the Committee on Veterans’ Affairs 
AN ACT 
To amend title 38, United States Code, to authorize the 
Secretary of Veterans Affairs to take certain actions 
in the case of a default on a home loan guaranteed 
by the Secretary, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘VA Home Loan Pro-
gram Reform Act’’. 
SEC. 2. AUTHORITY OF THE SECRETARY OF VETERANS AF-
FAIRS TO TAKE CERTAIN ACTIONS IN THE 
CASE OF A DEFAULT ON A HOME LOAN GUAR-
ANTEED BY THE SECRETARY. 
(a) IN GENERAL.—Section 3732 of title 38, United 
States Code, is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘obliga-
tion’’ each place it appears and inserting 
‘‘loan’’; 
(B) in paragraph (2)— 
(i) by amending subparagraph (A) to 
read as follows: 
‘‘(A) The Secretary may, under terms and conditions 
determined by the Secretary— 
‘‘(i) pay the holder of a loan guaranteed under 
this chapter an amount necessary to avoid the fore-
closure of such loan; 
‘‘(ii) require the holder of the loan and the vet-
eran obligated on the loan to execute all documents 
necessary to ensure the Secretary obtains a secured 
interest in the property covered by the loan; and 
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‘‘(iii) require the holder of the loan to take any 
actions necessary to carry out this paragraph, in-
cluding preparing, executing, transmitting, receiving, 
and recording documents, and requiring the holder 
of the loan to place the loan in forbearance.’’; 
(ii) in subparagraph (B), by striking 
‘‘obligation’’ each place it appears and in-
serting ‘‘housing loan’’; and 
(iii) by adding at the end the fol-
lowing new subparagraphs: 
‘‘(C)(i) Any decision by the Secretary under this 
paragraph is final and is not subject to judicial review. 
‘‘(ii) For purposes of section 511 of this title, any 
decision under this paragraph shall not be treated as a 
decision under a law that affects the provision of benefits. 
‘‘(D)(i) The Secretary may establish standards for 
processing payments under this paragraph based on a cer-
tification by a holder of a loan guaranteed under this 
chapter that the holder has complied with all applicable 
requirements established by the Secretary. 
‘‘(ii) The Secretary shall carry out, on a random-sam-
pling basis, post-payment audits to ensure compliance 
with all requirements described in clause (i).’’; and 
(C) in paragraph (5), by striking ‘‘obliga-
tion’’ and inserting ‘‘loan’’; 
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(2) in subsection (c)— 
(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by striking ‘‘sub-
section—’’ and inserting ‘‘subsection:’’; and 
(B) in paragraph (10)(B)(i), by striking 
‘‘forebearance’’ each place it appears and in-
serting ‘‘forbearance’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(d) The Secretary shall prescribe loss mitigation 
procedures, including a mandatory sequence in which the 
holder of a loan guaranteed under this chapter shall offer 
loss mitigation options (including an option to enter into 
a partial claim agreement under the VA Home Loan Pro-
gram Reform Act) to a veteran, to help prevent the fore-
closure of such loan. The Secretary may not purchase an 
entire such loan until the veteran has completed such se-
quence.’’. 
(b) RELATIONSHIP
TO OTHER POWERS
OF SEC-
RETARY.—Section 3720 of such title is amended— 
(1) in subsection (a), by striking ‘‘Notwith-
standing’’ and inserting ‘‘Except as provided in sub-
section (h), notwithstanding’’; 
(2) by redesignating subsections (f) through (h) 
as subsections (e) through (g), respectively; and 
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(3) by adding at the end the following new sub-
section (h): 
‘‘(h) The Secretary may not take any action under 
paragraph (2), (3), (4), or (5) of subsection (a) with re-
spect to a loan guaranteed under this chapter before the 
completion of the sequence of mitigation options offered 
to the veteran to whom the loan is made under section 
3732(d) of this title.’’. 
SEC. 3. PARTIAL CLAIM PROGRAM OF THE DEPARTMENT 
OF VETERANS AFFAIRS. 
(a) IN GENERAL.—Subchapter III of chapter 37 of 
title 38, United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 3737. Partial Claim Program 
‘‘(a) ESTABLISHMENT.—The Secretary shall carry 
out a program, to be known as the ‘Partial Claim Pro-
gram’, under which the Secretary may make a partial 
claim, described in subsection (b), with respect to a loan— 
‘‘(1) guaranteed under this chapter; 
‘‘(2) regarding the primary residence of the 
borrower; and 
‘‘(3) that the Secretary determines is in default 
or at imminent risk of default. 
‘‘(b) PARTIAL CLAIM DESCRIBED.—A partial claim 
described in this subsection, with respect to a loan de-
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scribed in subsection (a), is the purchase by the Secretary 
of a portion of indebtedness under the loan, through a 
transaction under which the Secretary— 
‘‘(1) pays to the holder of the loan the amount 
of indebtedness, subject to subsection (c), that the 
Secretary determines necessary to help prevent or 
resolve a default; and 
‘‘(2) receives a secured interest in the property 
that serves as collateral for the guaranteed loan, 
which is subordinate to the first lien guaranteed loan 
for such property. 
‘‘(c) ADMINISTRATION OF PARTIAL CLAIM.—(1)(A) 
Subject to subparagraph (B), the amount of a partial 
claim under this section with respect to a loan guaranteed 
described in subsection (a) may not exceed 25 percent of 
the unpaid principal balance of the loan on the date on 
which the partial claim is made. 
‘‘(B) In the case of an individual who failed to make 
a payment on a loan guaranteed under this chapter during 
the period beginning on March 1, 2020 and ending on May 
1, 2025, the amount of a partial claim under this section 
may not exceed 30 percent of the unpaid principal balance 
of the guaranteed loan as of the date that the initial par-
tial claim is made. 
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‘‘(2)(A) Subject to subparagraph (B), the Secretary 
may make only one partial claim per loan. 
‘‘(B) The Secretary may make an additional partial 
claim on a loan guaranteed under this chapter in the case 
of an individual who failed to make a payment on such 
loan during— 
‘‘(i) a major disaster declared by the President 
under section 401 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 
5170); or 
‘‘(ii) the period of 120 days following such a 
major disaster. 
‘‘(3) An amount paid to the holder of a loan as a 
partial claim— 
‘‘(A) shall not count against the amount of a 
loan that may otherwise be guaranteed under this 
chapter; and 
‘‘(B) may not be applied to the portion of the 
loan that is guaranteed under this chapter. 
‘‘(4) A holder of a loan guaranteed under such chap-
ter for which the Secretary makes a partial claim under 
this section shall apply the amount paid by the Secretary 
for the partial claim first to arrearages, if any, on the 
guaranteed loan. Such arrearages may include any addi-
tional costs (such as taxes, insurance premiums, or home-
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owner’s dues) the Secretary determines necessary to pre-
vent or resolve a default. 
‘‘(5) The Secretary may enter into a contract with 
an appropriate entity for the service of a partial claim 
made by the Secretary under this section. Any such con-
tract shall provide that such entity shall provide quarterly 
statements to the holder of the loan for which the Sec-
retary makes the partial claim. 
‘‘(d) REQUIREMENTS OF LOAN HOLDER.—(1) The 
Secretary may require the holder of a loan for which the 
Secretary makes a partial claim under this section to take 
any actions necessary to establish the partial claim, in-
cluding preparing, executing, transmitting, receiving, and 
recording loan documents. 
‘‘(2) The Secretary shall compensate the holder of 
such a loan appropriately, as determined by the Secretary, 
for the services required of such holder under this sub-
section. 
‘‘(3) The Secretary may exercise the authority of the 
Secretary under this subsection without regard to any 
other provision of law not enacted expressly in limitation 
of this section that would otherwise govern the expenditure 
of public funds. 
‘‘(e) DEFAULT
AND FORECLOSURE.—(1)(A) Not-
withstanding section 3703(e) of this title, an individual 
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who defaults on a loan for which the Secretary makes a 
partial claim made under this section shall be liable to the 
Secretary for any loss suffered by the Secretary resulting 
from such default. Such a loss may be recovered in the 
same manner as any other debt due the United States. 
‘‘(B) In the event of default by an individual on a 
loan for which the Secretary makes a partial claim made 
under this section, the Secretary may reduce the aggregate 
amount of guaranty or insurance housing loan entitlement 
available to the individual under this chapter. 
‘‘(2) Notwithstanding section 2410(c) of title 28, an 
action to foreclose a lien held by the United States arising 
under a partial claim made under this section shall follow 
foreclosure procedures in accordance with State or local 
law where the property involved is located. 
‘‘(f) DECISIONS BY THE SECRETARY.—(1) Any par-
tial claim made under this section shall be made in the 
sole discretion of the Secretary and on terms and condi-
tions acceptable to the Secretary that are consistent with 
this section. 
‘‘(2) Any decision by the Secretary under this section 
is final and conclusive and is not subject to judicial review. 
‘‘(3) For purposes of section 511 of this title, any 
decision under this section shall not be treated as a deci-
sion under a law that affects the provision of benefits. 
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‘‘(g) COMPLIANCE.—(1) The Secretary may establish 
standards for processing payments under this section 
based on a certification by a holder of a loan guaranteed 
under such chapter that the holder has complied with all 
applicable requirements established by the Secretary. 
‘‘(2) The Secretary shall carry out, on a random-sam-
pling basis, post-payment audits to ensure compliance 
with all requirements under paragraph (1). 
‘‘(h) GUIDANCE
WITH
RESPECT
TO
CERTAIN 
LOANS.—(1) With respect to a loan described in para-
graph (2), the Secretary may— 
‘‘(A) before prescribing regulations, issue ad-
ministrative guidance regarding the making of a 
partial claim relating to such loan; and 
‘‘(B) establish, through such guidance, addi-
tional requirements applicable to such a partial 
claim. 
‘‘(2) A loan described in this paragraph is a loan that 
the Secretary determines was in default on the date of 
the enactment of this section. 
‘‘(i) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to limit the authority of the Sec-
retary under subsections (a) and (d) of section 3732 of 
this title. 
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‘‘(j) TERMINATION.—The Secretary may not make a 
partial claim under this section after the date that is five 
years after the date of the enactment of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 3736 the following new 
item: 
‘‘3737. Partial Claim Program.’’. 
SEC. 4. STRATEGY OF THE SECRETARY OF VETERANS AF-
FAIRS REGARDING THE EFFECT OF CERTAIN 
LITIGATION. 
Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Veterans Affairs shall 
submit to the Committees on Veterans’ Affairs of the Sen-
ate and House of Representatives a report on the strategy 
of the Secretary to ensure that a veteran who seeks to 
purchase a home with a loan guaranteed under chapter 
37 of title 38, United States Code, is not at a disadvan-
tage when attempting to secure representation by a real 
estate agent or broker. Such strategy may include amend-
ments to section 36.4313 of title 38, Code of Federal Reg-
ulations. 
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SEC. 5. INCREASE OF AUTHORIZATION OF APPROPRIA-
TIONS FOR COMPREHENSIVE SERVICE PRO-
GRAMS FOR HOMELESS VETERANS. 
Section 2016 of title 38, United States Code, is 
amended— 
(1) in paragraph (7), by striking ‘‘fiscal year 
2015 and each subsequent fiscal year’’ and inserting 
‘‘each of fiscal years 2015 through 2024’’; and 
(2) by adding at the end the following new 
paragraphs: 
‘‘(8) $344,000,000 for each of fiscal years 2025 
and 2026. 
‘‘(9) $257,700,000 for each fiscal year there-
after through fiscal year 2030.’’. 
Passed the House of Representatives May 19, 2025. 
Attest: 
KEVIN F. MCCUMBER, 
Clerk. 
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