Thanks to American Legion advocacy, veterans who need assistance with their VA home loans are one step closer to getting help.
On July 15, the Senate passed legislation that authorizes the Department of Veterans Affairs (VA) to take certain actions in cases of default on home loans under the VA home loan program and establishes a partial claim program. The need for the program was evidenced by the recent sunset of the Veterans Affairs Servicing Purchase (VASP) program.
Estimates show between 60,000 and 80,000 veterans are delinquent on their mortgages and have no guardrails in place to prevent foreclosure. The bill also provides parity with home loans provided through the Department of Agriculture and the Federal Housing Administration. Economic Opportunity Sub-committee Chairman Derrick Van Orden, R-Wisc., and the committee’s bipartisan actions in introducing this legislation will provide a much-needed safety net for these at-risk veteran homeowners.
American Legion National Commander James LaCoursiere praised the passage of HR 1815, the VA Home Loan Program Reform Act.
“Home ownership is the American dream,” he said. “But sometimes veterans encounter challenges with their mortgage payments through no fault of their own. Thanks to this legislation, these veterans have a new safety net when they need it. And these actions will allow them to stay in their homes, living out their American dream, which they provided for many others through their service and keeping our nation safe.”
The bill authorizes the VA to pay the holder of a loan guaranteed by the VA an amount necessary to avoid foreclosure, provided the holder of the loan and the veteran execute documents to ensure the VA obtains a secured interest in the property. VA also must prescribe loss mitigation procedures to help prevent the foreclosure of such a home loan.
The bill now heads to the president’s desk.
“The American Legion is working closely with the White House to urge the president to sign this much-needed legislation,” LaCoursiere said. “Thank you, Legion Family, for stepping up and advocating for this important bill.”
- Veterans Benefits