WHAT THE LAW DOINCongress, in plain words

H.R. 1815 · 119th Congress · Public Law 119-31

VA Home Loan Program Reform Act

Became lawArmed Forces and National Security
IntroducedMar 3, 2025
Passed HouseMay 19, 2025
Passed SenateJul 15, 2025
To PresidentJul 18, 2025
Became lawJul 30, 2025

How this bill changes the law

Sourced

H.R. 1815 changed 2 sections of existing law, and created 2 new provisions of its own. Read from the bill text in its final form, as sent to the President.

38 U.S.C. 3732 Procedure on default

  • (a) (1) In the event of default in the payment of any loan guaranteed under this… rewritten · Sec. 2(a) · see the words
  • (c) (1) For purposes of this subsection— changed · Sec. 2(a) · see the words
  • (d) new · Sec. 2(a) · see the words

38 U.S.C. 2016 Authorization of appropriations

  • (7) $257,700,000 for fiscal year 2015 and each subsequent fiscal year. changed · Sec. 5(1) · see the words
  • (8) new · Sec. 5(2) · see the words

New provisions of the bill's own

  • Sec. 3 Partial Claim Program of the Department of Veterans Affairs
  • Sec. 4 Strategy of the Secretary of Veterans Affairs regarding the effect of certain litigation
What the words changed: every change, in place (10)

Today's wording of each part of the law, with what was struck out and added. Each change also gives the bill's own instruction, word for word.

  1. 38 U.S.C. 3732(a)(1)changedby H.R. 1815 Sec. 2(a)

    (a)(1) In the event of default in the payment of any loan guaranteed under this chapter, the holder of the obligationloan shall notify the Secretary of such default. Upon receipt of such notice, the Secretary may, subject to subsection (c) of this section, pay to such holder the guaranty not in excess of the pro rata portion of the amount originally guaranteed. Except as provided in section 3703(e) of this title, if the Secretary makes such a payment, the Secretary shall be subrogated to the rights of the holder of the obligationloan to the extent of the amount paid on the guaranty.

    The bill says: in paragraph (1), by striking "obligation" each place it appears and inserting "loan";

  2. 38 U.S.C. 3732(a)(2)rewrittenby H.R. 1815 Sec. 2(a)

    (A) The Secretary may, under terms and conditions determined by the Secretary—(i) pay the holder of a loan guaranteed under this chapter an amount necessary to avoid the foreclosure of such loan;(ii) require the holder of the loan and the veteran obligated on the loan to execute all documents necessary to ensure the Secretary obtains a secured interest in the property covered by the loan; and(iii) require the holder of the loan to take any actions necessary to carry out this paragraph, including preparing, executing, transmitting, receiving, and recording documents, and requiring the holder of the loan to place the loan in forbearance.

    The bill says: by amending subparagraph (A) to read as follows:

  3. 38 U.S.C. 3732(a)(2)(B)changedby H.R. 1815 Sec. 2(a)

    (B) In the event that a housing loan guaranteed under this chapter is modified under the authority provided under section 1322(b) of title 11, the Secretary may pay the holder of the obligationhousing loan the unpaid principal balance of the obligationhousing loan due, plus accrued interest, as of the date of the filing of the petition under title 11, but only upon the assignment, transfer, and delivery to the Secretary (in a form and manner satisfactory to the Secretary) of all rights, interest, claims, evidence, and records with respect to the housing loan.

    The bill says: in subparagraph (B), by striking "obligation" each place it appears and inserting "housing loan"; and

  4. 38 U.S.C. 3732(a)(2)added (C)by H.R. 1815 Sec. 2(a)

    (C)(i) Any decision by the Secretary under this paragraph is final and is not subject to judicial review.(ii) For purposes of section 511 of this title, any decision under this paragraph shall not be treated as a decision under a law that affects the provision of benefits.(D)(i) The Secretary may establish standards for processing payments under this paragraph based on a certification by a holder of a loan guaranteed under this chapter that the holder has complied with all applicable requirements established by the Secretary.(ii) The Secretary shall carry out, on a random-sampling basis, post-payment audits to ensure compliance with all requirements described in clause (i).

    The bill says: by adding at the end the following new subparagraphs:

  5. 38 U.S.C. 3732(a)(5)changedby H.R. 1815 Sec. 2(a)

    (5) In the event of default in the payment of any loan guaranteed or insured under this chapter in which a partial payment has been tendered by the veteran concerned and refused by the holder, the holder of the obligationloan shall notify the Secretary as soon as such payment has been refused. The Secretary may require that any such notification include a statement of the circumstances of the default, the amount tendered, the amount of the indebtedness on the date of the tender, and the reasons for the holder's refusal.

    The bill says: in paragraph (5), by striking "obligation" and inserting "loan";

  6. 38 U.S.C. 3732(c)(1)changedby H.R. 1815 Sec. 2(a)

    (c)(1) For purposes of this subsection—subsection: (A) The term "defaulted loan" means a loan that is guaranteed under this chapter, that was made for a purpose described in section 3710(a) of this title, and that is in default. (B) The term "liquidation sale" means a judicial sale or…

    The bill says: in paragraph (1), in the matter preceding subparagraph (A), by striking "subsection—" and inserting "subsection:"; and

  7. 38 U.S.C. 3732(c)(10)(B)(i)changedby H.R. 1815 Sec. 2(a)

    (B)(i) Subject to division (ii) of this subparagraph, in any case in which there is a substantial delay in such sale caused by the holder of the loan exercising forebearanceforbearance at the request of the Secretary, the date referred to in paragraph (1)(D)(ii) of this subsection shall be such date, on or after the date on which forebearanceforbearance was requested and prior to the date of such sale, as the Secretary specifies pursuant to regulations which the Secretary shall prescribe to implement this paragraph.

    The bill says: in paragraph (10)(B)(i), by striking "forebearance" each place it appears and inserting "forbearance"; and

  8. 38 U.S.C. 3732added (d)by H.R. 1815 Sec. 2(a)

    (d) The Secretary shall prescribe loss mitigation procedures, including a mandatory sequence in which the holder of a loan guaranteed under this chapter shall offer loss mitigation options (including an option to enter into a partial claim agreement under the VA Home Loan Program Reform Act) to a veteran, to help prevent the foreclosure of such loan. The Secretary may not purchase an entire such loan until the veteran has completed such sequence.

    The bill says: by adding at the end the following new subsection:

  9. 38 U.S.C. 2016(7)changedby H.R. 1815 Sec. 5(1)

    (7) $257,700,000 for fiscal year 2015 and each subsequent fiscal yeareach of fiscal years 2015 through 2024.

    The bill says: in paragraph (7), by striking "fiscal year 2015 and each subsequent fiscal year" and inserting "each of fiscal years 2015 through 2024"; and

  10. 38 U.S.C. 2016added (8)by H.R. 1815 Sec. 5(2)

    (8) $344,000,000 for each of fiscal years 2025 and 2026.(9) $257,700,000 for each fiscal year thereafter through fiscal year 2030.

    The bill says: by adding at the end the following new paragraphs:

From the bill's official text on GovInfo and the U.S. Code, 2024 edition, which may not yet show changes made since.

What it does

Sourced

VA Home Loan Program Reform Act

This act authorizes the Department of Veterans Affairs (VA) to take certain actions in cases of default on home loans under the VA home loan program, establishes a partial claim program, and temporarily increases amounts authorized for transitional housing and supportive services for veterans who are experiencing homelessness.

First, the act authorizes the VA to pay the holder of a loan guaranteed by the VA an amount necessary to avoid the foreclosure of the loan, provided that the holder of the loan and the veteran obligated on the loan execute documents to ensure the VA obtains a secured interest in the property covered by the loan.

The VA must prescribe loss mitigation procedures to help prevent the foreclosure of such a home loan. The VA may not take specified administrative actions (e.g., consent to the modification of loan terms) until the sequence of mitigation options has been completed.

Next, the act establishes a five-year Partial Claim Program under which the VA may make a partial claim (purchase a portion of the indebtedness) on VA loans for primary residences that are in default or at imminent risk of default. Individuals who default on loans for which the VA has made a partial claim under this program must be liable to the VA for any loss resulting from the default.

Further, the VA must report to Congress on its strategy to ensure that veterans who purchase homes under the VA home loan program are not at a disadvantage when attempting to secure representation by a real estate agent or broker.

Finally, the act temporarily increases the amounts authorized for the VA’s Grant and Per Diem program for FY2025 and FY2026. (The program provides funding to public or nonprofit private entities that provide housing and supportive services to veterans experiencing homelessness.)

Official summary by the Congressional Research Service (Public Law, Jul 30, 2025).

Our plain-language breakdown, with what it means for you and the case for and against, is written once a bill starts to move.

What has happened

Sourced
  1. 2025-07-30Became Public Law No: 119-31.Library of Congress
  2. 2025-07-30Signed by President.Library of Congress
  3. 2025-07-18Presented to President.Library of Congress
  4. 2025-07-15Passed/agreed to in Senate: Passed Senate without amendment by Voice Vote.Library of Congress
  5. 2025-05-19Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2126-2127)Library of Congress
  6. 2025-05-19Reported (Amended) by the Committee on Veterans' Affairs. H. Rept. 119-104.Library of Congress
  7. 2025-03-03Introduced in HouseLibrary of Congress

Show all 29 recorded actions

After it became law

Sourced

Since it became law on Jul 30, 2025, the Federal Register, the government's daily record of rules and notices, has published 3 documents that name it: 3 notices.

Named in the body of the document

The quote shows how each one uses the law: as the reason for a change, as background, or in passing.

  1. NoticeAug 14, 2026Regulatory Information Service Center
    Introduction to the Unified Agenda of Federal Regulatory and Deregulatory Actions-2026
    Statement of Need: With this rulemaking, VA will propose its implementation of the provisions of the VA Home Loan Program Reform Act (Pub. L. 119-31), which mandates action in cases of home loan defaults under the VA Home Loan Program.
  2. NoticeApr 27, 2026Veterans Affairs Department
    Agency Information Collection Activity: VA Loan Electronic Reporting Interface (VALERI) System and Title Requirements for Conveyance of Real Property to the Secretary
    In addition, Public Law 119-31, the VA Home Loan Program Reform Act (July 30, 2025) provides statutory authority supporting expanded Loss Mitigation and Partial Claim activities.
    Comments closed May 27, 2026
  3. NoticeJan 28, 2026Management and Budget Office
    Notice; 2025 Statutory Pay-As-You-Go Act Annual Report
    Public Law 119-27, Guiding and Establishing National Innovation for U.S. Stablecoins Act; Public Law 119-31, VA Home Loan Program Reform Act; Public Law 119-37, Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026; Public Law 119-39, Internal Revenue…

Found by searching the Federal Register for Public Law 119-31 and the law's names, then reading each document: every one listed contains them, and the quote is its own words. An agency can carry out a law without naming it, so this list can miss some. Checked Oct 27, 2026. Every new law's rules