John Boozman, a senator on the Veterans Affairs Committee, declined to comment to the Natural State News 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 aims to allow the Department of Veterans Affairs (VA) to create a partial claims program to support veterans who are behind on their mortgage payments. According to the House Committee on Veterans’ Affairs, through this program, the VA could pay overdue amounts on behalf of borrowers, enabling veterans to repay the debt over time and avoid foreclosure. The legislation is currently under review by the Senate Committee on Veterans’ Affairs.
MarketWatch reports that the Veterans Affairs Servicing Purchase (VASP) program, which assisted over 17,000 veterans by acquiring defaulted VA-backed loans and lowering interest rates to 2.5%, ceased accepting new applications on May 1, 2025. The shutdown of this program has raised concerns about increased foreclosure risks for veterans, especially in light of the absence of a replacement like the proposed partial claims initiative.
A report from MortgagePoint in May 2025 reveals that nearly 90,000 VA-guaranteed loans are now considered seriously delinquent, with borrowers at least 90 days behind on payments. Around 33,000 of these loans have already progressed to foreclosure. The sharp rise in veteran foreclosures following the end of the VASP program underscores the critical need for new loss mitigation solutions.
Boozman is a fifth-generation Arkansan who was elected to Congress in 2001 after serving as a private-practice optometrist and co-founding a regional eye clinic. He has served as Arkansas’s senior U.S. Senator since January 2011.
