A partial claim may not exceed 25 percent of the unpaid balance
To amend title 38, United States Code, to authorize the Secretary of Veterans Affairs to take certain actions in the case of a default on a home loan guaranteed by the Secretary, and for other purposes, section 3, Sec. 3.
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A partial claim may not exceed 25 percent of the unpaid balance
The document says “may not”Who acts: Secretary of Veterans AffairsHow: statuteSec. 3 in the PDF
What the document says
“Subject to subparagraph (B), the amount of a partial claim under this section with respect to a loan guaranteed described in subsection (a) may not exceed 25 percent of the unpaid principal balance of the loan on the date on which the partial claim is made.”
The new section caps a partial claim at 25 percent of the loan's unpaid principal balance, measured on the day the claim is made, except where the higher cap in subparagraph (B) applies.
What the document actually says
“Subject to subparagraph (B), the amount of a partial claim under this section with respect to a loan guaranteed described in subsection (a) may not exceed 25 percent of the unpaid principal balance of the loan on the date on which the partial claim is made.”
That sentence, in plain words
The VA can buy no more than one quarter of what is still owed. The count is taken on the day it buys.
What this is about
Unpaid principal is the loan money still owed. It does not count the interest.
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.
VA Home Loan Program Reform Act, Public Law 119-31, sec. 3, 139 Stat. 476 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ31/html/PLAW-119publ31.htm
This page
“A partial claim may not exceed 25 percent of the unpaid balance,” VA Home Loan Program Reform Act, section 3, Sec. 3. Read the Mandate, https://readthemandate.org/va-home-loan-program-reform-act/proposal/sec03-cap-25-percent/ (retrieved October 10, 2026).
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