Senate Passes VA Home Loan Reform Act

The VA Home Loan Program Reform Act (H.R. 1815) recently passed the Senate, having passed the House of Representatives in May, and now proceeds to President Trump, who is expected to sign the bill into law.  

H.R. 1815 introduces a partial claim loss mitigation solution for VA loans, mirroring programs in place with other federal housing agencies.  Under the partial claim option, qualifying veteran borrowers who have missed payments may be eligible for an advance to resolve the missed payments, with the advance becoming a separate, interest-free loan secured by a subordinate lien on the property.  Repayment of the partial claim amount is deferred until sale, refinancing or pay-off of the original loan at maturity.