Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of H.R. 1815, the VA Home Loan Program Reform Act, as amended. We are, unfortunately, here to solve a crisis of the Trump administration's own making.…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 1815, the VA Home Loan Program Reform Act, as amended.
We are, unfortunately, here to solve a crisis of the Trump administration's own making. Due to the unilateral actions of President Trump and Secretary Collins, over 80,000 veterans, servicemembers, and their families are now facing foreclosures on their homes.
Let's review how we got here. Our Nation faced an unprecedented crisis with COVID-19. That required action from VA to prevent the loss of hundreds of thousands of homes when our economy ground to a halt.
President Biden, with the support of Congress, took action. First, the President used existing authorities to pause foreclosures. Then with the authorities granted by the national disaster declaration, the VA was able to implement a partial claims program, very similar to this very legislation we are considering today, saving tens of thousands of veterans from losing their homes.
Mr. Speaker, Republicans, including Chairman Bost, urged President Biden to end the U.S. national emergency for COVID-19, which occurred on April 11, 2023.
Mr. Speaker, this resulted in VA losing authorities to carry out a partial claims program, again, not unlike the legislation we are considering now.
At that moment, action was still critically needed. Our veterans would have lost their homes. The VA could no longer offer a partial claims program because, of course, the national emergency was ended, so President Biden instituted a second foreclosure moratorium to give VA more time to offer a solution.
Mr. Speaker, President Biden and Secretary Denis McDonough began to work in 2023 and launched the Veterans Affairs Servicing Purchase program, or VASP, on May 31, 2024. During that year, most lenders cooperated, and very few veteran foreclosures occurred.
This new program, VASP, used explicit existing authorities granted by Congress to offer veteran homeowners a last resort before losing their homes. However, last month, Secretary Collins, President Trump, and Elon Musk's DOGE abruptly ended the VASP program, giving veterans no notice that a critical lifeline for borrowers was being taken away.
This decision was pushed for and celebrated by Chairman Bost and Subcommittee on Economic Opportunity Chairman Van Orden. If the Speaker listens to them, they will argue that the program meant that VA would incur too much risk or that VA was not properly prepared to handle holding the loans of these veterans.
Just so we are all clear, VA already holds the risks for loans in the home loan program. The program is called the Home Loan Guaranty Program. VA is guaranteeing that lenders are made whole if a veteran is foreclosed on. The lenders collect the interest, profit from the loan, and if a foreclosure happens, the lenders are paid first.
Mr. Speaker, I will read from the VA's own website:
``A VA home loan guaranty means that a purchaser obtains a loan through a private lender, such as a bank, credit union, or mortgage company. VA then works with the lender to guarantee the loan. If the homeowner defaults on the loan, VA will pay the debt to the lender.''
Second, the claim that VA doesn't know how to manage property or hold loans is just plain wrong. VA has an extensive property management portfolio. VA testified before our committee earlier this year on its ability to hold the loans. VA already has enhanced-use leases on nearly 40 of its campuses, meaning VA is acting as a landlord that is managing property being used by lessees.
Further, President Trump recently announced his intentions to own a massive housing property at the West L.A. campus. I look forward to working with the administration to make this happen, and this absolutely is evidence of VA's ability to manage land and properties.
Mr. Speaker, today, I and Members of Congress continue to field calls from veterans who learned from a press release that they are likely to lose their homes. These are veterans who saw the Secretary's April 25 notice that the program was ending. These are the very same veterans who tried to apply for the program and who found out that the program had already closed.
Mr. Speaker, the May 1 closing date was deceptive. In reality, these veterans would have had to have submitted their paperwork much earlier in April. This is outrageous and cruel. In the chairman's State of Illinois, over 2,000 borrowers face foreclosure. In the bill sponsor's State of Wisconsin, over 600 borrowers face foreclosure. In my State of California, over 4,000 borrowers face foreclosure. I could go on and on, but these borrowers had options to avoid foreclosure. Yet, these options are now severely limited.
Many of these veterans are now afraid of speaking out against the VA in fear of retribution. They are disabled veterans, Vietnam war-era veterans, Gulf war veterans, and Active-Duty military members. These veterans and these soldiers had our backs. Where is the Trump-Collins VA? It is unnecessarily pushing them into risk of foreclosure.
As mortgage rates on the open market remain high compared to recent years and with the closure of the VASP program, the only options available to these borrowers are either selling their home or being foreclosed upon. As VASP was the program of last resort, ending VASP has accelerated the risk to these borrowers.
Mr. Speaker, that brings us to the legislation we are considering today. This legislation attempts to offer a lifeline to those the Trump administration has unnecessarily put at risk. It is not a perfect or a complete fix, and it is likely to be too late for many of the 80,000 who are wondering today if they will still have a home in a month. Yet, it is necessary legislation that I urge the Department to implement quickly.
In the minority views filed for this legislation, I continue to urge the Secretary to reinstate some kind of assistance for veteran borrowers until this legislation is signed into law and implemented. That will take some time. Every veteran who loses their home will have no one to blame but President Trump and Secretary Collins.
Mr. Speaker, it is not too late for Secretary Collins to act, and I hope veterans, VSOs, and housing groups continue to call on him to do so. I also call on my colleagues on the other side of the aisle to join those efforts instead of celebrating the end of VASP.
Mr. Speaker, I plan to support H.R. 1815, as amended, and I urge my colleagues to join me in supporting it. This legislation should be expanding existing options for veterans to make veteran home foreclosures extremely rare and occurring only in the most extreme cases. Instead, this is a Band-Aid that likely will arrive too late for many.
Mr. Speaker, I urge all Members to support this legislation, and I reserve the balance of my time.
Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, I point out that the gentleman from Illinois (Mr. Bost), the chairman, is making a mountain out of nothing. The greater risk either way to the government, the home loan program, the VA is on the hook for these loans whether they hold them, or whether lenders hold the note.
What we are talking about here is 80,000 veterans with highly distressed loans being unnecessarily put at risk, and the Biden administration did what it could given changing circumstances from an expiring emergency authority, to having to put a second pause on any foreclosures on these veterans, to finding a solution in VASP.
I am supportive of a replacement to VASP, but it is inexplicable why the Secretary would suddenly, without notice, end the program for veterans who very much right at this very moment would have liked to have applied for VASP before it had been terminated. Yet, as we speak, there is no solution. Regardless of how quickly we move in this Chamber or in the Senate, it is going to take time to stand up this replacement program in time. Meanwhile, we will see veterans lose their homes, all for a very flimsy reason.
Mr. Speaker, I support this legislation, but context is important. This legislation is now critically important because of recent actions by this administration.
This legislation also includes funding for the homelessness programs passed as part of the Elizabeth Dole Act last Congress. The Trump- Collins VA continues to drag their feet on sections of the Dole Act that increase our ability to get homeless veterans housed and off of the streets.
Mr. Speaker, I will address Chairman Bost's remarks that the reason portions of the Dole Act were not implemented, regarding the grant and per diem sections for the homeless, were due to the Biden administration's failure.
This is not true. The Biden administration clearly articulated the policy needed in the Dole Act. The chairman failed to include those in the bill before passage last Congress.
Now, the Trump veteran housing crisis first cuts off foreclosure assistance, driving veterans into homelessness, then blocks aid to homelessness providers. My colleagues want to claim today that we are fixing the Trump veteran housing crisis, but if they are serious, they need to join our calls for immediate action by Secretary Collins.
First, we need to implement the Dole Act, including the section on augmentations to the grant and per diem program for getting homeless off the streets. We need to stop the firing of veterans working at VA. We need to halt veteran foreclosures until, at the very least, the legislation we are considering today has been implemented. We need to bring back VASP to offer borrowers more avenues to keep their homes; otherwise, President Trump may see the number of homeless veterans double in a single year.
I will close by saying, again, that I support H.R. 1815, the VA Home Loan Program Reform Act, as amended, but action is truly needed before it is too late.
Mr. Speaker, I yield back the balance of my time.