FAIR Veterans Act of 2025: Congress Pushes VA to Maximize Foreclosure Prevention for Vets

The FAIR Veterans Act of 2025 is straightforward legislation designed to reinforce support for veterans at risk of losing their homes. At its heart, the bill sends a clear message to the Department of Veterans Affairs (VA): foreclosure should be the absolute last resort, and the VA should actively use its existing powers, particularly the Veterans Affairs Servicing Purchasing (VASP) program, to help veterans stay put.

A Clear Message from Congress: Prioritize Keeping Veterans Housed

First up, the bill includes what's known as a "Sense of Congress." This isn't just political window dressing; it's Congress officially stating its expectation that the VA should exhaust every available option to prevent veteran foreclosures. It specifically points to the VA's existing authority under laws like 38 U.S.C. 3732(a)(2), urging the agency to proactively use these tools. While this doesn't invent a new program from scratch, it firmly establishes keeping veterans in their homes as a top priority for the VA, effectively telling the agency to use the tools it already has more robustly.

Greasing the Wheels: How Clearer Rules Help the VA Help Vets

The core action of the FAIR Veterans Act lies in an amendment to 38 U.S.C. 3732(a)(2)(A). This change clarifies the VA Secretary's authority to pay the outstanding balance plus accrued interest on a defaulted veteran's loan, and in exchange, receive an assignment of that loan and its security. This process is a crucial component of the VASP program, where the VA essentially buys the distressed loan from the original lender. By making this authority unambiguous, the bill aims to ensure the VA can more smoothly and confidently deploy the VASP program. For a veteran facing potential foreclosure, this means a clearer pathway for the VA to step in, acquire their loan, and potentially offer more sustainable repayment options, ultimately helping them keep their home.