Senate sends VA foreclosure prevention bill to Trump’s desk

The establishment of the program aims to bring greater parity between the VA loan guaranty program and the home loan programs provided by the Federal Housing Administration (FHA) and U.S. Department of Agriculture (USDA).

Per a press release from the U.S. Senate Committee on Veterans Affairs, a partial claim program at the VA could help more than 20,000 current borrowers who are considered seriously delinquent to retain their homes.

The legislation would increase the authorization of funding for comprehensive service programs for homeless veterans, allowing the veteran homelessness provisions to be fully implemented.

The Mortgage Bankers Association (MBA) announced its support of the bill, which will now head to President Donald Trump’s desk to be signed into law.

“MBA applauds the Senate for taking swift bipartisan action to support veterans at risk of foreclosure by passing the VA Home Loan Program Reform Act. This important legislation, which passed the House in May, is a critical step forward in ensuring that distressed veteran homeowners have access to a proven and sustainable loss mitigation solution,” said Bob Broeksmit, the MBA’s president and CEO.

“We thank Senate Veterans’ Affairs Committee Chairman Jerry Moran (R-KS) and Ranking Member Dick Blumenthal (D-CT) for their leadership during this process, including their willingness to work with the Trump administration, their colleagues, and key stakeholders to pass this loss mitigation authority for the VA so expeditiously,” Broeksmit added.

Moran and Blumenthal, alongside U.S. Reps. Mike Bost (R-Ill.) and Mark Takano (D-Calif.) — the leaders of the House Committee on Veterans’ Affairs — also released a statement about the Senate’s passage of the bill.

“This bipartisan and bicameral legislation will assist veterans who are facing financial hardships and provide VA with a tool to better help veterans stay in their homes and avoid foreclosure,” the statement read. “The VA Home Loan Program provides one of the best benefits VA has to offer, and has helped veterans and their families build home equity since its inception in 1944.

“… We appreciate the efforts of mortgage servicers and holders for their work during the Congressional process and their commitment to providing VA loan services to veterans during these challenging times. We encourage VA and mortgage servicers to continue their collaboration as this program is implemented, ensuring that they help mitigate any impact on veterans facing financial hardship while VA takes the necessary steps to establish the new partial claims program properly.”