Monday Market Update: The VA Home Loan Reform Act Is Now Law
See the two benefits to veterans and their families here.
The VA Home Loan Reform Act (H.R. 1815) was signed into law on July 30, 2025. The bill was introduced on March 3, 2025 by Congress Representative Derrick Van Orden and was supported by many key organizations including: Mortgage Bankers Association, National Association of Realtors (NAR), National Association of Mortgage Brokers (NAMB), National Coalition for Homeless Veterans (NCHV), Veterans of Foreign Wars (VFW), and The American Legion.
There are two key parts to this law, the first of which relates to protection and reduced risk of foreclosure for those with VA loans. This need became urgent after the shutdown of the VA Servicing Purchase (VASP) program in Spring 2025, which according to National Mortgage Professional, “... had provided loss mitigation relief to approximately 35,000 seriously delinquent borrowers, allowing the VA to purchase, modify, and hold those loans. Following its termination, more than 43,000 VA loans remained six or more months delinquent as of June, with no comparable program in place.”
This new legislation now establishes a permanent partial claim program for VA loans, meaning that the VA can advance funds to cover payments for borrowers in serious delinquency, without refinancing or impacting original loan terms. (This is a similar structure for loans administered by FHA and USDA.)
The second part of the law relates to the new commission structure for how real estate agents are paid, now allowing veterans to “directly compensate their real estate agents, ensuring they can participate in the housing market on equal footing with other homebuyers (NAR®).” An outdated policy limited the ability of VA buyers to compete in markets where sellers declined to cover agent fees, and there had only been a temporary suspension in place. This new law provides long-term clarity for lenders, agents & borrowers as explained by National Mortgage Professional.
Resources Used & Further Reading:
NAR Secures Win for Veterans as VA Home Loan Reform Act Becomes Law
President Trump Signs Landmark VA Home Loan Program Reform Act into Law
Cheers,
Bobbi
Bobbi Decker
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Broker Associate, Bobbi Decker & Associates
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www.bobbidecker.com
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