VA could get more power to aid struggling veteran homeowners
The National Association of Mortgage Brokers (NAMB) has issued its formal support for new legislation aimed at strengthening protections for veterans facing the risk of home foreclosure.
In a letter addressed to Rep. Mike Bost, R-Ill., NAMB president Jim Nabors expressed gratitude for the introduction of H.R. 1815 – the VA Home Loan Program Reform Act, a measure designed to provide the US Department of Veterans Affairs with expanded authority to assist veterans who have defaulted on VA-guaranteed home loans.
“The abrupt end of VASP has left VA borrowers with far fewer options than those available to homeowners with other federally backed loans,” Nabors wrote, referring to the termination of the VA’s Veterans Affairs Servicing Purchase (VASP) program on April 30. VASP had been a key mechanism for helping delinquent borrowers avoid foreclosure by offering affordable repayment plans.
As of April 1, according to the letter, over 75,000 VA loan borrowers were more than 90 days delinquent. NAMB warns that without expanded federal support, many of these veterans could face homelessness or severe financial hardship.
The proposed legislation would grant the VA Secretary greater discretion to intervene when a veteran defaults on a loan. This could include implementing foreclosure prevention strategies and measures that allow borrowers to remain in their homes.
Nabors stated the bill would “ensure the protection and privacy of homebuyers” while improving responsiveness in a shifting housing landscape. “This bill is critical as it will enable the VA to play a more active role in supporting veterans who are at risk of losing their homes due to loan defaults,” he said.
NAMB pledged to collaborate with Rep. Bost and other lawmakers in advocating for expanded home loan protections for veterans, citing a shared commitment to “safeguarding the welfare of veterans by providing them with additional support mechanisms during financial hardships.”
The VA Home Loan Program Reform Act comes at a time of mounting concern over housing affordability and stability for military families, particularly in the wake of pandemic-era protections that have since expired.
What are your thoughts on how this proposed legislation could impact veterans facing potential foreclosure? Share your insights below.
