President Donald Trump on Wednesday signed Rep. Derrick Van Orden’s bill, the VA Home Loan Program Reform Act, into law after it received approval last week from the Senate.
The VA Home Loan Program Reform Act will reform the U.S. Department of Veterans Affairs (VA) mortgage program by adding a partial claim option — a change that housing advocates say is urgently needed after the VA stopped accepting new applications for its Veteran Affairs Servicing Purchase (VASP) program on May 1.
The program had provided critical relief to struggling borrowers, and its closure left thousands of delinquent veterans without a comparable alternative.
The partial claim program, which allows veterans who are behind on their mortgage payments to move the missed payments to the end of their loan term, is part of broader efforts to modernize the VA mortgage program, which currently supports 3.7 million veterans.
The bill also aims to extend mortgage assistance, already available through other federal housing programs, to veterans who have fallen behind on their payments. Nearly 70,000 veteran homeowners are currently more than 90 days delinquent, according to a press release from the House Committee on Veterans Affairs.
For lenders, the bill aligns VA loan servicing with other federal programs by establishing partial claim authority, which offers a clear path to help seriously delinquent borrowers avoid foreclosure without changing loan terms.
The bill also permanently updates buyer agent compensation rules, easing the homebuying process for VA borrowers, especially in competitive markets.
“Our veterans and their families should have every tool at their disposal to keep their homes and reduce the risk of foreclosure if they fall into financial hardship or endure a national disaster. Today, House Republicans and President Trump made that a reality for every veteran homeowner,” said Rep. Mike Bost (R-Ill.), chairman of the House veterans committee.
“Rep. Van Orden’s VA Home Loan Program Reform Act will modernize the VA Home Loan to meet veterans’ needs and reduce the risk of veteran homelessness. I’m proud that we fought hard to get this good bill to President Trump’s desk to keep our promise to those who have served.”
The act has broad support from major housing, veteran advocacy and private sector groups, including the Mortgage Bankers Association (MBA), Rocket Mortgage, the National Association of Realtors (NAR) and the National Association of Mortgage Brokers.
“Those who have served our country deserve access to the same protections available to other homeowners, and the enactment of the VA Home Loan Program Reform Act of 2025 brings us closer to that reality,” Rocket Mortgage said in a statement.
“Now that the Act has been signed into law, the VA can develop a strong, effective solution that provides mortgage servicers with the tools they need to support servicemembers and veterans in today’s higher-rate environment. We appreciate the Committee’s dedication to seeing the bill across the finish line.”
Bob Broeksmit, president and CEO of MBA, voiced continued support for the bill.
“This important legislation is a critical step forward in ensuring that distressed veteran homeowners have access to a proven and sustainable loss mitigation solution,” he said in a statement.
In a blog post on Wednesday, Broeksmit detailed how the MBA “kept pressure on Congress to restore VA’s authority to use the partial claim.”
“The legislation MBA helped shape and persuade Congress to pass will give unambiguous authority to the VA to help America’s veterans overcome financial setbacks and keep their homes,” he wrote. “… MBA members are committed to helping people achieve the dream of homeownership and doing all we can to keep those dreams alive, in good times and bad.
“Now that the President has signed the Veteran Home Loan Program Reform Act into law, we will remain tenacious on behalf of American veterans to ensure its swift and seamless implementation.”
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