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VA Home Loan Program Reform ActSection 3 › Proposal

The cap is 30 percent for payments missed between March 2020 and May 2025

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. Written by .

The cap is 30 percent for payments missed between March 2020 and May 2025

The document says “may notWho acts: Secretary of Veterans AffairsHow: statuteSec. 3 in the PDF
What the document says

“In the case of an individual who failed to make a payment on a loan guaranteed under this chapter during the period beginning on March 1, 2020 and ending on May 1, 2025, the amount of a partial claim under this section may not exceed 30 percent of the unpaid principal balance of the guaranteed loan as of the date that the initial partial claim is made.”

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, Sec. 3

For a borrower who missed a payment at any point between March 1, 2020 and May 1, 2025, the cap is 30 percent instead of 25, measured as of the date of the initial partial claim.

What the document actually says

“In the case of an individual who failed to make a payment on a loan guaranteed under this chapter during the period beginning on March 1, 2020 and ending on May 1, 2025, the amount of a partial claim under this section may not exceed 30 percent of the unpaid principal balance of the guaranteed loan as of the date that the initial partial claim is made.”

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, Sec. 3
That sentence, in plain words

Some people get a higher limit. It is for those who missed a payment in a set stretch of time.

What this is about

The stretch runs from March 1, 2020 to May 1, 2025. For them the VA can buy up to three tenths of what is owed.

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