2900-AS78 202510 The Regulatory Plan and the Unified Agenda of Federal Regulatory and Deregulatory Actions 2900 Department of Veterans Affairs VA Expanding Options for Veterans to Avoid Home Foreclosures

The Department of Veterans Affairs (VA) proposes to amend its regulations to ensure servicers provide veterans with appropriate options, including a partial claim, in an effort to avoid foreclosure of a VA-guaranteed loan. This proposed rule implements the Veterans Home Loan Program Reform Act (the Act), including prescribing a mandatory sequence of loss mitigation options for servicers and establishing a temporary, five-year partial claim program.

]]> Other Significant First Time Published in The Unified Agenda Proposed Rule Stage No No Deregulatory 38 CFR part 36 38 U.S.C. 3720 38 U.S.C. 3732 38 U.S.C. 3737 Yes

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. The proposed rule would provide the Secretary with the authority to avert foreclosures and introduce a partial claim program, thereby supporting Veterans in maintaining home ownership and financial stability.  

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38 U.S.C. 3720, 3732. VA would add new regulations to 38 CFR part 36.

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VA considered several alternatives, including maintaining the status quo or enhancing current loan modification programs without introducing partial claims. However, the partial claim program was selected as the best approach because it provides a more flexible and effective method to reducing the burden on Veterans facing imminent default on their home loan.

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Costs are still being determined. This rulemaking will bring the VA Home Loan Program into alignment with the requirements of Pub. L. 119-31.

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This proposed rule would establish regulations to ensure that the Secretary can implement loss mitigation procedures, including partial claims, to prevent foreclosures. Establishing a partial claims process would preserve freedom of choice and allow Veterans to access tailored financial assistance to avoid foreclosure, thus reducing long-term risks and costs associated with defaults.

]]> NPRM 07/00/2026 Undetermined None No No No Andrew Trevayne Assistant Director - Loan Guaranty Service 2900 Department of Veterans Affairs VA 202 632-8795 andrew.trevayne@va.gov Washington DC 20420