Trump signs new law helping veterans avoid foreclosure with partial claims payment program

President Donald Trump signed the VA Home Loan Program Reform Act into law Wednesday, cementing a partial claims program aimed at preventing veterans from losing their homes to foreclosure. 

The new partial claims program under the Department of Veterans' Affairs' (VA) Home Loan Program will allow veterans who are late on mortgage payments to tack on those payments to the tail end of their loans. 

Additionally, the partial claims program seeks to replace the Veterans Affairs Servicing Purchase (VASP) program created in 2024 under the Biden administration, but that the Trump administration nixed in May. 

Under the VASP program, the VA bought up delinquent VA loans from mortgage servicers, adjusted the loans and then offered borrowers a fixed 2.5% interest rate for the duration of the loan. 

But the VASP program faced scrutiny from Republicans, who decried that it ...