Veterans Housing Stability Act of 2025

Prevention of Default: The Partial Claim Program allows the Secretary to pay a portion of a's indebtedness to help prevent or resolve a default (Section 2(a), Sec. 3723(a)).

Protection Against Additional Costs: Payments made through a partial claim are applied first to arrearages, which can include costs like taxes, insurance premiums, or homeowner's dues (Section 2(a), Sec. 3723(c)(2)).

No Administrative Charges to Borrowers: Expenses related to a partial claim, including administrative expenses, cannot be charged to the borrower (Section 2(a), Sec. 3723(c)(4)).

Increased Support During Disasters: In response to a major disaster declared by the President, the Secretary can increase the partial claim cap to 30 percent of the unpaid principal balance (Section 2(a), Sec. 3723(c)(1)(C)).

Encouragement of Foreclosure Moratoriums: The Secretary is directed to strongly encourage loan holders to implement a moratorium on foreclosures until the new program is fully operational (Section 2(d)).

Repayment Obligations: Borrowers who receive a partial claim must enter into a noninterest-bearing agreement to repay that portion of the debt at loan maturity (Section 2(a), Sec. 3723(b)(2)).

Reduction of Future Loan Entitlements: Once an individual enters into a partial claim, the Secretary shall reduce the aggregate amount of housing loan entitlement available to that individual for any new mortgage loan until the partial claim is fully repaid (Section 2(a), Sec. 3723(e)(1)(B)).

Liability for Losses: If an individual defaults under a partial claim, they are liable to the Secretary for any loss suffered, which can be recovered as a debt due to the United States (Section 2(a), Sec. 3723(e)(1)(A)).

Lack of Judicial Review: Decisions made by the Secretary regarding partial claims are considered final and conclusive and are not subject to judicial review (Section 2(a), Sec. 3723(f)(2)).