I 
118TH CONGRESS 
2D SESSION 
H. R. 7898 
To amend title 38, United States Code, to modify the administration of 
housing loans of the Department of Veterans Affairs to prevent or 
resolve default under such loans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 9, 2024 
Mr. DELUZIO (for himself and Mr. MOYLAN) introduced the following bill; 
which was referred to the Committee on Veterans’ Affairs 
A BILL 
To amend title 38, United States Code, to modify the admin-
istration of housing loans of the Department of Veterans 
Affairs to prevent or resolve default under such loans, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Veterans Housing Sta-
bility Act of 2024’’. 
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SEC. 2. MODIFICATION OF ADMINISTRATION OF HOUSING 
LOANS OF DEPARTMENT OF VETERANS AF-
FAIRS TO PREVENT OR RESOLVE DEFAULT. 
(a) POWERS OF SECRETARY.—Section 3720 of title 
38, United States Code, is amended— 
(1) in subsection (f), by striking ‘‘forebearance’’ 
and inserting ‘‘forbearance’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(i)(1) Notwithstanding the provisions of any other 
law, including section 501(d) of this title, the Secretary 
may, in response to a national emergency declared by the 
President under the National Emergencies Act (50 U.S.C. 
1601 et seq.), a major disaster declared by the President 
under section 401 of the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C. 5170), or 
a widespread and significant crisis as determined by the 
Secretary, take any of the following actions as the Sec-
retary considers reasonably necessary to further the pur-
poses of this chapter: 
‘‘(A) Impose a moratorium on the foreclosure of 
any loan guaranteed, insured, made, or held by the 
Secretary. 
‘‘(B) Impose a moratorium on any possessory 
action arising from the foreclosure of any such loan. 
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‘‘(C) Impose a period of forbearance and estab-
lish related requirements with respect to any such 
loan. 
‘‘(2)(A) No moratorium or period of forbearance may 
be imposed under paragraph (1) for more than 180 days 
unless the Secretary extends such moratorium or period 
of forbearance as provided in subparagraph (A). 
‘‘(B) The Secretary may extend a moratorium or pe-
riod of forbearance imposed under paragraph (1), or any 
previous extension of such a moratorium or period of for-
bearance, if the Secretary, not fewer than 30 days before 
extending such moratorium, period of forbearance, or pre-
vious extension— 
‘‘(i) notifies Congress of the extension; and 
‘‘(ii) publishes notice of the extension in the 
Federal Register.’’. 
(b) PARTIAL CLAIM PROGRAM.—Subchapter III of 
chapter 37 of such title is amended by inserting after sec-
tion 3722 the following new section: 
‘‘§ 3723. Partial Claim Program 
‘‘(a) IN GENERAL.—The Secretary may establish a 
program under this section, to be known as the ‘Partial 
Claim Program’, under which the Secretary may make a 
partial claim with respect to a loan guaranteed under this 
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chapter if the Secretary determines that such loan is in 
default or faces imminent default. 
‘‘(b) PARTIAL CLAIM DEFINED.—In this section, the 
term ‘partial claim’, with respect to a loan guaranteed 
under this chapter, means the purchase by the Secretary 
of a portion of indebtedness under the guaranteed loan, 
under which— 
‘‘(1) the Secretary pays the holder of the guar-
anteed loan the amount of indebtedness the Sec-
retary determines necessary to help prevent or re-
solve a default; 
‘‘(2) the borrower of the guaranteed loan enters 
into a noninterest-bearing loan agreement to repay 
the Secretary at the end of the period of the guaran-
teed loan; and 
‘‘(3) the Secretary receives a secured interest in 
the property, subordinate to the first lien guaranteed 
loan, serving as collateral for the guaranteed loan. 
‘‘(c) ADMINISTRATION OF PARTIAL CLAIM.— 
‘‘(1) AMOUNT
OF
CLAIM.—The amount of a 
partial claim under this section with respect to a 
loan guaranteed under this chapter 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) APPLICATION OF CLAIM.—A holder of a 
loan guaranteed under this chapter who receives a 
partial claim under this section with respect to such 
loan shall apply the payment first to arrearages, if 
any, on the guaranteed loan, which may include any 
additional costs (such as taxes, insurance premiums, 
or homeowner’s dues) the Secretary determines nec-
essary to prevent or resolve a default. 
‘‘(3) NO ADVANCE ON LOAN GUARANTY.—The 
Secretary may not structure a partial claim under 
this section as an advance on a loan guaranty pro-
vided under this chapter. 
‘‘(4) EXPENSES.—Expenses related to a partial 
claim under this section, including administrative ex-
penses associated with such partial claim, may not 
be charged to the borrower of the guaranteed loan 
with respect to which the partial claim is paid. 
‘‘(d) REQUIREMENTS OF LOAN HOLDER.— 
‘‘(1) AGENT
OF
SECRETARY.—The Secretary 
may require the holder of a loan guaranteed under 
this chapter who receives a partial claim under this 
section to service the partial claim as an agent of 
the Secretary. 
‘‘(2) ESTABLISHMENT
OF
CLAIM.—The Sec-
retary may require the holder of a loan guaranteed 
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