NAMB Applauds House Passage Of VA Home Loan Reform Bill

The National Association of Mortgage Brokers (NAMB) is praising the U.S. House of Representatives for its bipartisan passage of H.R. 1815, the VA Home Loan Program Reform Act, a measure aimed at expanding foreclosure prevention tools for veterans.

The legislation would provide the U.S. Department of Veterans Affairs (VA) with permanent authority to offer partial claims — bringing the VA’s mortgage loss mitigation toolkit in line with those available through the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac. These reforms are designed to ensure that veterans have equitable access to critical foreclosure avoidance options available to other borrowers with federally backed home loans.

“This legislation is a critical step toward housing stability for veterans,” said NAMB President Jim Nabors. “It restores much-needed tools to help VA borrowers avoid foreclosure and keep their homes — parity they’ve lacked since the abrupt end of the VASP program.”

NAMB advocated for key provisions in the legislation, including:

• Maintaining full VA loan guarantee levels;
   
• Eliminating interest accrual on partial claims;
   
• Structuring the program to align with FHA and GSE loss mitigation practices;
   
• Implementing a rolling five-year sunset provision; and
   
• Increasing the maximum allowable partial claim to 30% of the unpaid principal balance. 

The association is now urging the U.S. Senate to move quickly on companion legislation, using the House-passed version as the basis for final enactment.

NAMB, a volunteer-led organization representing mortgage professionals and homebuyers, noted it continues to advocate for legislation that supports housing access, borrower protections, and mortgage market stability.