Bill > S1921

This bill establishes a new Partial Claim Program within the Department of Veterans Affairs (VA) to help veterans facing potential mortgage default. Under this program, the VA can purchase a portion of a veteran's loan indebtedness to prevent foreclosure, with the veteran agreeing to repay the amount later without interest. The partial claim can cover up to 25% of the loan's unpaid principal balance, with potential increases to 30% for veterans already delinquent or in areas affected by major presidential disaster declarations. Loan holders receiving partial claims must apply the payment first to any arrears and cannot charge the veteran administrative expenses. The bill also introduces civil penalties for loan holders who knowingly make false statements, with potential fines up to $27,894 or twice the loss suffered by the VA. Additionally, the legislation requires the VA to develop mandatory loss mitigation procedures and strongly encourages a foreclosure moratorium while the program is being implemented. The Partial Claim Program is designed to provide a flexible, non-judicial solution to help veterans maintain homeownership during financial hardships, giving the VA Secretary broad discretion in administering the program.

Military Affairs and Security

https://www.congress.gov/bill/119th-congress/senate-bill/1921/all-info