Washington, D.C. – Today, U.S. Senator Lisa Blunt Rochester (D-Del.) and Senator Mike Rounds (R-S.D.) led the introduction of the Veterans Housing Stability Act to help keep veterans and servicemembers in their homes by reestablishing a vital program through the Department of Veterans Affairs.
During the COVID-19 pandemic, the U.S. Department of Veterans Affairs (VA) helped veterans keep their homes by providing forbearances on most VA borrowers through the VA’s COVID mortgage forbearance program. The Partial Claim Program, established during the pandemic, helped countless veterans with financial difficulty stay in their homes. However, as of 2022, the VA ended its Partial Claim Program, leaving thousands of veterans who may have paused or missed their mortgage payments at risk.
This month, the VA Servicing Purchase Program (VASP), a program designed to help veterans experiencing financial hardship avoid foreclosure, was shut down by the Trump Administration. This decision has only exacerbated the risks that veterans, servicemembers, and their families face if they do not receive urgent relief.
“Our nation has a sacred obligation to serve our veterans, just as they have served our nation. We absolutely cannot afford to have our veterans and their families kicked out of their homes,” said Senator Blunt Rochester, a member of the Senate Banking, Housing, and Urban Affairs Committee. “To make matters worse, I was deeply alarmed when I learned the Trump administration decided to end VASP, a critical program that provided additional protections for veterans facing foreclosure. This legislation is an urgent fix that would ensure that our veterans and servicemembers remain safely in their homes.”
Senator Richard Blumenthal (D-Conn.), a longtime champion for veterans and Ranking Member of the Senate Veterans’ Affairs Committee, joined the legislation as a cosponsor.
“The Veterans Housing Stability Act of 2025 clarifies the VA’s authority to help Veteran borrowers who need assistance to save their homes,” said Steve Sharpe, senior attorney at the National Consumer Law Center (on behalf of their low income clients). “The mortgage relief options available for Veteran borrowers are much less favorable than the options available to other borrowers and that is unacceptable. This bill will help close the gap.”
“With the expiration of VASP, tens of thousands of Veterans and their families are now at significant risk of losing their homes,” said Mike Calhoun, president of the Center for Responsible Lending. “The Veterans Housing Stability Act of 2025 would preserve Veteran homeownership and save government money by avoiding preventable foreclosures. Congress should enact the bill quickly.”
The Veterans Housing Stability Act:
- Reestablishes a partial claim program at the Department of Veterans Affairs.
- Allows the VA to assist Veteran borrowers to get current on their loans and keep their homes. Arrearages would be acquired by VA, placed into a separate lien, and could be paid off when a Veteran sells their home or finishes paying off their loan.
- Provides Veterans with similar loss mitigation options to borrowers with FHA and USDA mortgages.
The Veterans Housing Stability Act is endorsed by the National Consumer Law Center (on behalf of its low income clients) and the Center for Responsible Lending.
Full text of the bill can be found here.
A one-pager can be found here.
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Senator Lisa Blunt Rochester represents Delaware in the United States Senate where she serves on the Committees on Banking, Housing, and Urban Affairs; Commerce, Science, and Transportation; Environment and Public Works; and Health, Education, Labor, and Pensions.