Reuben Gallego, a senator on the Veterans Affairs Committee, declined to comment to the Grand Canyon Times on whether he supports the VA Home Loan Reform Act. The National Defense Committee chair has warned that this act could put thousands of veterans at risk of losing their homes.
The VA Home Loan Program Reform Act of 2025 seeks to authorize the Department of Veterans Affairs (VA) to establish a partial claims program to assist veterans who are delinquent on their mortgage payments. Under this proposed program, the VA could cover missed payments and allow veterans to repay them later, thereby reducing the risk of foreclosure. According to the House Committee on Veterans’ Affairs, the bill is currently under review by the Senate Committee on Veterans’ Affairs.
MarketWatch reports that the Veterans Affairs Servicing Purchase (VASP) program, which assisted more than 17,000 veterans by buying defaulted VA-backed loans and reducing interest rates to 2.5%, stopped accepting new applications on May 1, 2025. The closure of this program has raised concerns about increasing foreclosure risks for veterans, particularly in the absence of a replacement such as the proposed partial claims program.
A May 2025 report from MortgagePoint indicates that nearly 90,000 VA-guaranteed loans are now classified as seriously delinquent, meaning borrowers are at least 90 days past due. Of these loans, approximately 33,000 have already entered the foreclosure process. This data highlights a significant increase in veteran foreclosures following the termination of the VASP program and underscores an urgent need for alternative loss mitigation options.
According to his website, Senator Gallego is a U.S. Marine Corps veteran and Harvard graduate who was elected to the Arizona House of Representatives in 2010 and subsequently to the U.S. House in 2014. He served on the House Armed Services and Natural Resources Committees with a focus on military policy and Arizona’s environmental issues. Gallego is now serving as a U.S. Senator representing Arizona.
