H. R. 1815 
One Hundred Nineteenth Congress 
of the 
United States of America 
AT THE FIRST SESSION 
Begun and held at the City of Washington on Friday, 
the third day of January, two thousand and twenty-five 
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 Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘VA Home Loan Program Reform 
Act’’. 
SEC. 2. AUTHORITY OF THE SECRETARY OF VETERANS AFFAIRS TO 
TAKE CERTAIN ACTIONS IN THE CASE OF A DEFAULT ON 
A HOME LOAN GUARANTEED 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 ‘‘obligation’’ each place 
it appears and inserting ‘‘loan’’; 
(B) in paragraph (2)— 
(i) by amending subparagraph (A) to read as fol-
lows: 
‘‘(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 foreclosure of such loan; 
‘‘(ii) require the holder of the loan and the veteran 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 
‘‘(iii) require the holder of the loan to take any actions 
necessary to carry out this paragraph, including preparing, 
executing, transmitting, receiving, and recording documents, 
and requiring the holder of the loan to place the loan in forbear-
ance.’’; 
(ii) in subparagraph (B), by striking ‘‘obligation’’ 
each place it appears and inserting ‘‘housing loan’’; 
and 
(iii) by adding at the end the following new sub-
paragraphs: 
‘‘(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.
H. R. 1815—2 
‘‘(D)(i) The Secretary may establish standards for processing 
payments under this paragraph based on a certification by a holder 
of a loan guaranteed under this chapter that the holder has com-
plied with all applicable requirements established by the Secretary. 
‘‘(ii) The Secretary shall carry out, on a random-sampling basis, 
post-payment audits to ensure compliance with all requirements 
described in clause (i).’’; and 
(C) in paragraph (5), by striking ‘‘obligation’’ and 
inserting ‘‘loan’’; 
(2) in subsection (c)— 
(A) in paragraph (1), in the matter preceding subpara-
graph (A), by striking ‘‘subsection—’’ and inserting ‘‘sub-
section:’’; and 
(B) in paragraph (10)(B)(i), by striking ‘‘forebearance’’ 
each place it appears and inserting ‘‘forbearance’’; and 
(3) by adding at the end the following new subsection: 
‘‘(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 Program Reform Act) to a veteran, to help 
prevent the foreclosure of such loan. The Secretary may not pur-
chase an entire such loan until the veteran has completed such 
sequence.’’. 
(b) RELATIONSHIP TO OTHER POWERS OF SECRETARY.—Section 
3720 of such title is amended— 
(1) in subsection (a), by striking ‘‘Notwithstanding’’ and 
inserting ‘‘Except as provided in subsection (h), notwith-
standing’’; 
(2) by redesignating subsections (f) through (h) as sub-
sections (e) through (g), respectively; and 
(3) by adding at the end the following new subsection 
(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 completion of the sequence of mitiga-
tion 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 Program’, 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 described in subsection