HR 1814119th CongressIn Committee

Restoring the VA Home Loan Program in Perpetuity Act of 2025

Introduced: Mar 3, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Restoring the VA Home Loan Program in Perpetuity Act of 2025 would limit how many loans the Department of Veterans Affairs (VA) can purchase under its Servicer Purchaser Program—the VA’s mechanism to buy loans guaranteed to prevent default. Specifically, the bill adds a hard cap of 250 loans per fiscal year for purchases under the program. It also adds a conforming clause to ensure purchases are subject to that cap. In addition, the bill requires the VA to deliver a report within 180 days of enactment outlining a plan to sell to non-government entities any loan acquired under the relevant authority on or after May 31, 2024. The overall aim appears to be to constrain VA loan-purchase activity and shift emphasis toward private-sector sale of loans.

Key Points

1Adds new subsection (C) to 38 U.S.C. §3732(a)(2): the Secretary may not exercise authority to purchase loans under subsections (A) and (B) for more than 250 loans in any single fiscal year.
2Conforming amendment to 38 U.S.C. §3720(a)(5): purchases must be “subject to the limitation under section 3732(a)(2)(C)” to reflect the new cap.
3180-day study requirement: the VA must submit to the Senate and House Veterans’ Affairs Committees a plan to sell to a non-government entity each loan acquired under §3732(a)(2) on or after May 31, 2024.
4Short title: The act is titled the “Restoring the VA Home Loan Program in Perpetuity Act of 2025.”
5Scope: The bill focuses on limiting VA’s ability to purchase guaranteed loans to prevent default and directing a study/plan on selling loans to private entities.

Impact Areas

Primary group/area affected- Veterans with VA-backed home loans and their families, who could experience changes in how and when the VA steps in to prevent loan default.- Mortgage lenders, servicers, and other private sector participants involved in the VA loan program, as the cap could alter VA-purchase activity and the downstream flow of loans to private buyers.Secondary group/area affected- VA program administrators and federal budget/oversight bodies, due to the new annual cap and reporting requirements.- Non-government entities that might purchase VA-guaranteed loans, since the bill directs planning for such sales.Additional impacts- Financial markets and foreclosure dynamics could be affected if fewer loans are purchased by the VA to prevent defaults and more loans move toward private-sector sale.- Administrative and oversight burden increases due to the new reporting requirement and the need to track loans acquired after May 31, 2024.- Overall policy signal about the role of the VA in distress loan management, potentially shifting more responsibility to private entities.

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