(2) by redesignating subsections (f) through (h) 
as subsections (e) through (g), respectively; and 
(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 respect 
to a loan guaranteed under this chapter before the comple-
tion of the sequence of mitigation options offered to the vet-
eran 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 Program’, 
under which the Secretary may make a partial claim, de-
scribed in subsection (b), with respect to a loan— 
‘‘(1) guaranteed under this chapter; 
‘‘(2) regarding the primary residence of the bor-
rower; and 
‘‘(3) that the Secretary determines is in default 
or at imminent risk of default. 
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‘‘(b) PARTIAL CLAIM DESCRIBED.—A partial claim 
described in this subsection, with respect to a loan described 
in subsection (a), is the purchase by the Secretary of a por-
tion 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 Sec-
retary 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 de-
scribed 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 
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of the guaranteed loan as of the date that the initial partial 
claim is made. 
‘‘(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 par-
tial 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 chapter 
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 guaran-
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teed loan. Such arrearages may include any additional 
costs (such as taxes, insurance premiums, or homeowner’s 
dues) the Secretary determines necessary to prevent or re-
solve 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 contract shall 
provide that such entity shall provide quarterly statements 
to the holder of the loan for which the Secretary makes the 
partial claim. 
‘‘(d) REQUIREMENTS OF LOAN HOLDER.—(1) The Sec-
retary may require the holder of a loan for which the Sec-
retary makes a partial claim under this section to take any 
actions necessary to establish the partial claim, including 
preparing, executing, transmitting, receiving, and record-
ing 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 subsection. 
‘‘(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 pub-
lic funds. 
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‘‘(e) DEFAULT AND FORECLOSURE.—(1)(A) Notwith-
standing section 3703(e) of this title, an individual who de-
faults on a loan for which the Secretary makes a partial 
claim made under this section shall be liable to the Sec-
retary for any loss suffered by the Secretary resulting from 
such default. Such a loss may be recovered in the same man-
ner 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 partial 
claim made under this section shall be made in the sole 
discretion of the Secretary and on terms and conditions ac-
ceptable to the Secretary that are consistent with this sec-
tion. 
‘‘(2) Any decision by the Secretary under this section 
is final and conclusive and is not subject to judicial review. 
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‘‘(3) For purposes of section 511 of this title, any deci-
sion under this section shall not be treated as a decision 
under a law that affects the provision of benefits. 
‘‘(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 applica-
ble 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 paragraph (2), the 
Secretary may— 
‘‘(A) before prescribing regulations, issue admin-
istrative guidance regarding the making of a partial 
claim relating to such loan; and 
‘‘(B) establish, through such guidance, additional 
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-
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retary under subsections (a) and (d) of section 3732 of this 
title. 
‘‘(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 enactment 
of this Act, the Secretary of Veterans Affairs shall submit 
to the Committees on Veterans’ Affairs of the Senate and 
House of Representatives a report on the strategy of the Sec-
retary 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 disadvantage when attempt-
ing to secure representation by a real estate agent or broker. 
Such strategy may include amendments to section 36.4313 
of title 38, Code of Federal Regulations. 
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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 amend-
ed— 
(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 para-
graphs: 
‘‘(8) $344,000,000 for each of fiscal years 2025 
and 2026. 
‘‘(9) $257,700,000 for each fiscal year there-
after.’’. 
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Union Calendar No. 77 
119TH CONGRESS 
1ST SESSION 
H. R. 1815 
[Report No. 119–104] 
A BILL 
To amend title 38, United States Code, to author-
ize the Secretary of Veterans Affairs to take cer-
tain actions in the case of a default on a home 
loan guaranteed by the Secretary, and for other 
purposes. 
MAY 19, 2025 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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