The amount paid does not count against the guaranty
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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The amount paid does not count against the guaranty
The document says “shall not”Who acts: Secretary of Veterans AffairsHow: statuteSec. 3 in the PDF
What the document says
“An amount paid to the holder of a loan as a partial claim-- ``(A) shall not count against the amount of a loan that may otherwise be guaranteed under this chapter; and ``(B) may not be applied to the portion of the loan that is guaranteed under this chapter.”
The money paid as a partial claim is kept apart from the guaranty. It does not reduce what may otherwise be guaranteed, and it may not be applied to the guaranteed portion of the loan.
What the document actually says
“An amount paid to the holder of a loan as a partial claim-- ``(A) shall not count against the amount of a loan that may otherwise be guaranteed under this chapter; and ``(B) may not be applied to the portion of the loan that is guaranteed under this chapter.”
That sentence, in plain words
The money the VA pays here is kept apart. It does not eat into the loan promise.
What this is about
The VA backs part of the loan. That backing is what the word promise means here. This payment does not touch it.
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
“The amount paid does not count against the guaranty,” VA Home Loan Program Reform Act, section 3, Sec. 3. Read the Mandate, https://readthemandate.org/va-home-loan-program-reform-act/proposal/sec03-claim-not-counted-against-guaranty/ (retrieved October 10, 2026).
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