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President Donald Trump on Wednesday signed legislation aimed at helping veterans avoid foreclosure, granting the Department of Veterans Affairs new authority to protect the homes of those who served.
The VA Home Loan Program Reform Act allows the VA to make payments to lenders on behalf of veterans with VA-backed home loans who are at risk of foreclosure.
The bill’s sponsor, Rep. Derrick Van Orden, R-Wis., and Rep. Mike Bost, R-Ill., joined Trump at the signing ceremony. Van Orden is a retired Navy SEAL, and Bost is a Marine Corps veteran.
According to a summary from Congress, the law permits the VA to pay the loan holder the necessary amount to prevent foreclosure, provided that both the lender and the veteran agree to documentation securing the VA’s interest in the property.
The measure also directs the VA to implement formal loss mitigation procedures before allowing certain administrative actions, such as changes to loan terms.
A central feature of the law is the establishment of a five-year Partial Claim Program. Under this provision, the VA can cover a portion of the debt on VA-backed loans that are in default or at risk of default. Veterans would remain liable for losses resulting from any subsequent default on loans supported through the program.
Speaking ahead of the bill signing, Trump said the measure could help prevent more than 60,000 veterans from losing their homes.
“But thanks to this bill, the Department of Veterans Affairs will be empowered to pay loan holders the necessary amount to prevent foreclosures on our veterans, so our veterans won’t be foreclosed and put out onto the streets. It’s very important,” Trump said, noting that up to 3.7 million veterans could benefit from the new partial claim program.
“That’s the kind of numbers you’re talking about. It’s big stuff. The costs of the program are fully offset and will add nothing at all to debt,” he added.
Van Orden praised Trump’s track record on veterans’ issues, calling him “the most positive pro-veteran president in the history of this country.”
“He backs up his words with deeds, and this is another example of how President Trump is taking care of our veterans,” Van Orden said. “So, sir, I’m very thankful for you, for your leadership, and let’s get this thing done and get our veterans into homes.”
