A borrower who defaults on a partial claim is liable for the loss
Making continuing appropriations and extensions for fiscal year 2026, and for other purposes, section 7307, Sec. 7307.
Written by .
A borrower who defaults on a partial claim is liable for the loss
The document says “shall”Who acts: Secretary of Veterans AffairsHow: statuteSec. 7307 in the PDF
What the document says
“a borrower who defaults on a partial claim shall be liable to the Secretary for any loss suffered by the Secretary with respect to such default, and such loss may be recovered in the same manner as any other debt due the United States. The Secretary shall not restore housing loan entitlement under section 3702(b) of this title until such loss is repaid in full.”
The new subparagraph (A) of section 3737(e)(1) of title 38 replaces the earlier wording. A further subparagraph lets the Secretary charge administrative costs, fees and interest in a manner similar to section 5315 of that title.
What the document actually says
“a borrower who defaults on a partial claim shall be liable to the Secretary for any loss suffered by the Secretary with respect to such default, and such loss may be recovered in the same manner as any other debt due the United States. The Secretary shall not restore housing loan entitlement under section 3702(b) of this title until such loss is repaid in full.”
That sentence, in plain words
A borrower who does not pay back a partial claim owes the loss to the government. It is collected like any other debt owed.
What this is about
Home loan help from the government comes with an amount a veteran may use. It is not given back until the loss is paid in full.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026, Public Law 119-37, sec. 7307, 139 Stat. 651 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ37/html/PLAW-119publ37.htm
This page
“A borrower who defaults on a partial claim is liable for the loss,” Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026, section 7307, Sec. 7307. Read the Mandate, https://readthemandate.org/continuing-appropriations-agriculture-legislative/proposal/sec7307-borrower-liable-for-loss-on-default/ (retrieved October 10, 2026).
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