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.
About This Bill
Committee
Latest Action · April 19, 2024
Referred to the Subcommittee on Economic Opportunity.
This legislation modifies the Department of Veterans Affairs housing loan program to help veterans avoid foreclosure and loan defaults. The bill creates a new Partial Claim Program that allows the VA Secretary to purchase a portion of a defaulted or at-risk veteran's loan debt—up to 30 percent of the unpaid balance—with the veteran repaying this amount interest-free at the end of the loan term. The legislation also expands the Secretary's authority to impose foreclosure moratoriums and forbearance periods during national emergencies, major disasters, or widespread crises for up to 180 days, with possible extensions if Congress is notified. Additionally, the bill establishes civil penalties of up to $27,894 for loan holders who knowingly make false statements in connection with these programs and allows the Secretary to set requirements for how loan holders must handle loss mitigation efforts. The bill's provisions for loans already in default would apply only through December 31, 2025, while the permanent Partial Claim Program and other provisions remain in effect indefinitely. The legislation provides no specific dollar funding amounts, leaving budget allocations to the appropriations process.
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